China 'deal' to axe LDV; AUTOMOTIVE: Fear that production will go east.

Byline: Jon Griffin

LDV was today facing D-Day in its nine-month battle for survival - amid claims more than 800 West Midland jobs may be sacrificed to China in an MG Rover-style "lift and shift" operation.

Shanghai Automotive Industry Corporation, backed by broker Dr Qu Li of China Ventures, was said to be key to the future of the Birmingham van-maker and about 4,000 UK jobs, according to sources.

A period of exclusive talks with LDV administrators PricewaterhouseCoopers was set to expire today as fears grew that virtually all West Midland production jobs could be lost to China. A supplier owed thousands of pounds by LDV said if the alleged SAIC deal went through, the vast majority of West Midland jobs would be lost and Maxus production eventually moved to China.

The supplier said: "SAIC are in pole position. In all likelihood they will flatten Washwood Heath and take the equipment over there. I am not even sure they are interested in keeping the land and buildings as assets.

"The Maxus would be built in Shanghai alongside the Roewe. It looks like the loss of 4,000 jobs. If it goes to China, the suppliers lose out; unsecured creditors will get nothing." The supplier's claims that SAIC, backed by Qu Li's China Ventures, were in talks with PWC came 24 hours after Malaysian group Weststar issued a statement denying it had walked away from the bargaining table.

The supplier source said: "It's definitely SAIC involved here and China Ventures are effectively the brokers for the deal. Weststar are behind the scenes but no-one really knows what they are trying to do."

The supplier claimed SAIC's business plan involved just 50 workers at the Washwood Heath factory producing less than 1,000 vans a year.

LDV administrator Rob Hunt, of PricewaterhouseCoopers, could not be contacted for comment.