Global News: Karmann Builds Last Convertible; AvtoVAZ Gets Loan; Vanmaker Ends Output
June 23, 2009
In news from Europe, German coachbuilder Karmann built its last convertible Monday -- a Mercedes-Benz CLK convertible -- Russia's AvtoVAZ is going for a government loan and troubled vanmaker LDV may end U.K. production depending on who buys it.
In Germany, coachbuilder Karmann, famous for the Karmann Ghia, assembled its last convertible Monday -- a Mercedes-Benz CLK. Now the company will focus on a major restructuring and try to survive insolvency. The company filed for bankruptcy in April. It employs 2,000 workers.
In Russia, AvtoVAZ shareholders approved a $25-billion Ruble state loan (equivalent to $806 million U.S.). The bridge loan is to cover the automakers debts, estimated at $1.3 billion in April. The funds will go to Rostekhnologii (Russian Technology). Rosekhnologii, France's Renault and Russian investment bank Troika Dialog, each own stakes in AvtoVAZ.
Struggling vanmaker LDV may end production in the United Kingdom, where it employs 800 workers directly and an estimated 4,000 additional workers depend on LDV for their livelihood. LDV assets are up for sale. PriceWaterhouseCoopers is managing the sale of LDV assets. Bids will be accepted beginning next week, and about 30 companies reportedly are shopping the Birmingham-based vanmaker. Some likely buyers would move production overseas, while some would continue production in the U.K.
LDV halted production last December. It went back up for sale after a buyout offer from Malaysian distributor WestStar collapsed.
Posted by Michelle Krebs at 7:11 AM under Companies , News | Comments (0) | digg this | Seed Newsvine
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