Thousands of jobs across the West Midlands were hanging in the balance today after it was revealed that van-maker LDV would close without immediate government support.

The Birmingham-based firm, which employs or supports around 7,000 people, has not produced a single vehicle since December 12 last year.

Van sales across the UK have almost halved in the past three months, in line with the slump affecting all major car firms – including LDV neighbour Land Rover.

Tony Woodley, joint leader of the Unite union, issued a grim warning last week that a UK vehicle plant was in danger of closing with the loss of thousands of jobs unless the Government stepped in.

He refused to name the factory, but it is believed the union has written to a number of MPs in the West Midlands warning of the dire straits of the industry in general – and mentioning LDV Vans.

LDV today refused to comment on the speculation, and neither would it confirm suggestions that it was due to meet the Government for crisis talks early this week.

LDV, owned by Russian lorry and van maker GAZ, has invested tens of millions of pounds in recent years in the factory, creating around 200 new jobs.

The plant, in Birmingham’s Washwood Heath, employs 850 workers, has a dealer network employing another 1,200,and also supports a further 5,000 jobs in supply companies. The company has announced that a management buy-out aimed at transforming the manufacturer into Europe’s first “green” van firm was close to completion.

The deal, led by outgoing GAZ chairman Erik Eberhardson, would make the business the first volume producer of electric vans in the UK.

LDV said plans were at an advanced stage with prototypes of low carbon vehicles already being trialled with a number of firms, and strong prospects of support from the European Investment Bank.