OREANDA-NEWS. On 14 May 2009 was announced, that GAZ Group had entered into agreement to sell its UK LDV van business to Malaysian automobile manufacturer and distributor Weststar.

Last week LDV's board announced it would, with regret, have to file a petition today to put the company into administration. But the GAZ Group continued intensive negotiations to find a way to save the business and jobs in Birmingham. These efforts have now paid off.

They have also been helped by the UK Government's decision to provide LDV with a short-term loan of GBP 5 million. The loan, guaranteed against Weststar, will fund the van maker's operations until the sale is completed.

Weststar already sell Maxus vans in Malaysia, a major market for the vehicles. Under the agreement, GAZ Group will retain its right to manufacture and distribute Maxus vehicles in Russia and the CIS.