Russian Carmaker GAZ in Talks to Buy British Van Company LDV

Russian automotive group Gaz, controlled by Russia?s aluminium oligarch Oleg Deripaska, is in talks to buy one of the few remaining UK-owned motor manufacturers, the van-maker LDV.

LDV, which was formerly known as Leyland DAF, was acquired by a group of shareholders in December 2005. It employs about 800 workers at its Birmingham plant. The company manufactures panel vans and minibuses. It produces more than 13,000 vehicles a year. LDV?s best known models are the Maxus minivan, which is used by the British Postal Service, and Sherpa. The company?s revenues amount to more than 200 million British pounds a year.

The talks between LDV and Gaz, Russia?s second largest automaker, are at a preliminary stage, the two parties said in a joint statement that was quoted by BBC. Russian business daily Vedomosti said that Gaz may limit itself to buying a license to produce Maxus minivans, without actually acquiring the plant.

The majority of British carmakers have undergone bankruptcy and change in ownership over the last few decades and now the vas majority of the country?s automotive industry is owned by foreign investors. MosNews has reported about Nikolai Smolensky, son of Russia?s once-famous banker Alexander Smolensky, who bought the British producer of sports cars TVR back in 2004. Smolensky has also attempted to buy MG Rover.