Birmingham vanmaker LDV has told its suppliers that is delaying payment of its bills as it battles to overcome a cash crisis.
"We are managing cash as tightly as we can and are delaying payment to suppliers," a spokesman for the company said.
LDV, which employs about 1,000 people at its factory in Washwood Heath, saw sales of its Maxus vans slump by nearly 43 per cent in 2008 as the UK light commercial vehicle market was hit by recession and the credit squeeze.
The company, which is ultimately owned by Russian oligarch Oleg Deripaska, has suspended production until the end of January.
It added its voice to calls for the Government to respond to the crisis assailing the entire automotive industry by offering loans or loan guarantees to manufacturers and their supplies.
