GAZ group, the Russian commercial vehicle manufacturer, has acquired LDV for a sum believed to be in the region of £50m.
GAZ says that it plans to expand production at LDV’s Birmingham plant, by adding new product lines and entering new markets in both Europe and around the globe. GAZ says it also plans to launch production of Maxus models at its plant in Nizhny Novgorod, (Russia), with a view to beginning distribution of the vehicles across the Russian and CIS markets.
GAZ is planning to establish a new company in the UK, GAZ International, that it says will be dedicated to identifying international expansion opportunities and forging strategic alliances with foreign car manufacturers.
Martin Leach, a former president and chief operating officer of Ford Europe, will step in as chairman of LDV. Steve Young, former head of the Automotive Practice of the global management consultants A.T. Kearney, will become chief executive. Both positions will begin with immediate effect. Leach and Young will also take up senior roles at GAZ International.
Erik Eberhardson, president of GAZ Group said: “We are very excited about this transaction, which represents an important strategic move; expanding our market presence and bringing market leading management talent to the Group. We believe that this deal will act as a catalyst for further international growth and will enhance our overall business performance.”