Van Company Hit by Recession Blues
As the country slides deeper into a recession, many are looking at different ways in which they can scale back, meaning that many so called luxury items are being passed over.
With every bill counting, it seems that van drivers are choosing to stick with their old models rather than upgrade to a newer model.
Van insurance is also high and with premiums higher for newer vehicles, there is a double benefit in sticking with an older van rather than upgrading.
Another aspect to consider is the fact that many van owners who use their van for business find that they are getting less work, and as a consequence choose to branch out into a new line of business.
All of these factors mean that the van market has been hit heavily, with vanmaker LDV, owned by the Russian billionaire Oleg Deripaska struggling to pay their debts.
The company is under so much pressure that they are offering their creditors vans as an alternative to cash payments which they do not have the funds for.
The company has appealed to the government to bail them out but to no avail, so are attempting to appease their many creditors with part payment made up of brand new vans.
A spokesman for LDV said that it was standard practice to offer alternatives where cash wasn't available, saying using vans is "accountancy practice where we have some money owed".
LDV has been putting increasing pressure on the government to bail them out after Gaz, the Russian automotive group that is part of Mr Deripaska's Basic Element investment empire, pulled out of supporting the company.
In addition to owing money to many creditors, LDV is facing a £1 million national insurance bill for it's 500 employees.
However the company's pleas for help from the government have gone unheeded as ministers recommended that LDV turns to Gaz for the support it needs.
It seems that the general public is lacking in enthusiasm for the company's plight, with many believing that LDV's downfall was caused by a poor business plan and below par vans.
Mr McPaul, from Shrewsbury said: "The problem with LDV is the Van is a seven year old design developed initially by a korean partner, it has taken 4 years to get it to the market.
It was dated when it came to the market.
If Ford is struggling with the transit, which is the best van on the market at present what, chance has LDV.
" Meanwhile, Steve Chapman from Liverpool actively welcomes the effect the current climate has had on businesses, saying: "Quite frankly, I think there will be, and should be a lot more of this, traditional way of trading.
Maybe the credit crunch and low interest rates will make people realise that money has its uses but its not the be all and end all and that we should live simply and trade goods and services directly.
"
With every bill counting, it seems that van drivers are choosing to stick with their old models rather than upgrade to a newer model.
Van insurance is also high and with premiums higher for newer vehicles, there is a double benefit in sticking with an older van rather than upgrading.
Another aspect to consider is the fact that many van owners who use their van for business find that they are getting less work, and as a consequence choose to branch out into a new line of business.
All of these factors mean that the van market has been hit heavily, with vanmaker LDV, owned by the Russian billionaire Oleg Deripaska struggling to pay their debts.
The company is under so much pressure that they are offering their creditors vans as an alternative to cash payments which they do not have the funds for.
The company has appealed to the government to bail them out but to no avail, so are attempting to appease their many creditors with part payment made up of brand new vans.
A spokesman for LDV said that it was standard practice to offer alternatives where cash wasn't available, saying using vans is "accountancy practice where we have some money owed".
LDV has been putting increasing pressure on the government to bail them out after Gaz, the Russian automotive group that is part of Mr Deripaska's Basic Element investment empire, pulled out of supporting the company.
In addition to owing money to many creditors, LDV is facing a £1 million national insurance bill for it's 500 employees.
However the company's pleas for help from the government have gone unheeded as ministers recommended that LDV turns to Gaz for the support it needs.
It seems that the general public is lacking in enthusiasm for the company's plight, with many believing that LDV's downfall was caused by a poor business plan and below par vans.
Mr McPaul, from Shrewsbury said: "The problem with LDV is the Van is a seven year old design developed initially by a korean partner, it has taken 4 years to get it to the market.
It was dated when it came to the market.
If Ford is struggling with the transit, which is the best van on the market at present what, chance has LDV.
" Meanwhile, Steve Chapman from Liverpool actively welcomes the effect the current climate has had on businesses, saying: "Quite frankly, I think there will be, and should be a lot more of this, traditional way of trading.
Maybe the credit crunch and low interest rates will make people realise that money has its uses but its not the be all and end all and that we should live simply and trade goods and services directly.
"