The new American owner of LDV is understood to be planning to axe 230 jobs at the van-maker's Washwood Heath factory in Birmingham.
The job losses, out of a total workforce of about 1,200, are the price to be paid for last Friday's £750 million refinancing deal that saved the company from collapse, insiders said.
Local union officials were told yesterday that a total of 170 temporary jobs will go along with 60 staff posts.
However, a spokeswoman for the new company, LDV Group Limited, would not confirm those figures.
Some of the Drews Lane manufacturing staff will be transferred from making the now discontinued Pilot and Convoy vans onto the Maxus assembly line.
"There are some jobs, yet to be determined, that might be redundant," the spokeswoman said.
"The idea will be to try to reallocate as many as possible to work on the Maxus range and it expected there will be redundancies. But the figure of 250 would be at the top end of expectations.
"The management is talking to employees to give them the good news of the company being secured," she added.
After a week of intense negotiations, LDV went into administration on Friday and was taken over almost immediately by Sun Capital, with existing backer European Acquisition Capital taking a minority stake in the new business.
Ironically, the administrators were Rob Hunt and Tony Lomas, the PricewaterhouseCoopers insolvency partners who handled the prolonged break up of MG Rover.
In a message emailed yesterday to LDV suppliers, Mr Hunt said: "The company has been loss making for the last three years and recent
refinanciings have proven insufficient to complete the development of the Maxus range, resulting in a severe cash shortage, cessation of production and staff lay-offs."
Mr Hunt concluded: "If we had not been able to complete this transaction it is very unlikely that manufacturing would not have been able to restart at the company."
The deal took the form of a pre-packaged administration, a maneouvre that allows the new owner to walk away from LDV's debts.
These include the multi-million pound deficit in the company's closed final salary scheme.
"They are not taking on the debt of the final salary scheme and therefore it means it will fall under the Pension Protection Fund," the spokeswoman said.
It was not known last night, though, whether the PPF will in fact agree to take responsibility for the fund.
Neither was it clear when production of the Maxus, suspended two weeks ago when the company hit a cashflow problem, will be resumed.
LDV said production would "progressively restart over the next few days", but there was speculation yesterday that the plant would be stay shut until early January.
The position of LDV's sup-pliers, some of who are understood to be owed millions of pounds, also remains uncertain.
One, who asked not to be identified, said: "Too many of us were hurt by MG Rover and do not want to be in that position again."
Unions, however, were taking an upbeat view of LDV's prospects.
"We are hopeful that when production of the new Maxus minibus starts in July that these terminations will be short term," a spokeswoman for the Transport and General Workers' Union said. ..SUPL: