VW moves in to buy Daewoo's half of 1.011
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LA by Colin Barnett
Speculation is mounting that Volkswagen is close to finalising a deal to buy half of LDV.
Sources in Korea report that VW intends to acquire Daewoo's 50% stake in the Birmingham van builder; but that a price has yet to be agreed. As CM went to press, an 1DV spokeswoman confirmed that nothing had yet been signed.
The beleaguered Korean automotive group Is now in the hands of court receivers as creditors press for a resolution of its problems.
A General Motors and Fiat consortium Is favoured to buy the bulk of the car building operation, although the increasing difficulties are likely to force down the value of any offer.
LDV's joint venture with Daewoo to produce a new van range is believed to be in the final stages of development, with a launch expected within 12 months. Even with its dated model line-up, LDV still manages to hold nearly 10% of the UK market for vans between 1,800-3,500kg. VW has 7.3% of the sector with its Transporter and LI A new Transporter is believed to be a few years away, but the IT is beginning to show its age, having missed out on the recent Sprinter update, and a replacement is not expected for up to eight years.