In an innovative a bid to stay afloat, LDV the troubled motor manufacturers, are offering payment in vans to suppliers to help ease cash flow and reduce stock. Is this a sign of things to come in the business sector? Better to barter your stock away at ‘todays’ value, than hold on to it in deflationary times?
LDV public relations and marketing director Guy Jones said:
“This works for our dealers and it works for us.They get something that is of value now and it reduces the debt position for the business. It is just accounting, really – people who are buying the vehicles from us are invoicing against their debts. We are not giving the vehicles away. This is part of an existing business arrangement to reduce debts.It is mainly used vehicles and it is being done on a case by case basis.”
Mr Jones insisted the vans for cash deal was a valuable tool for the van-maker in its battle for survival.
Around 7,000 jobs are at risk at the failing plant, all of whom have already taken a 10% pay-cut.
There are thousands more jobs at risk amongst their suppliers should LDV go under.
Shall we see DFS trading several hundred sofas in return for the telephone bill – and British Telecom workers staggering home with a sofa in lieu of wages?
Anna is the landlady of the Raccoon Arms. She lives in the Monbazillac area of South West France and still takes a keen interest in British politics.
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That should make their excess stock van-ish quite quickly
how’s it go…..awrite John, got a new mota?