Van maker LDV today called in administrators in a move that raises fears for up to 6,000 jobs in the automotive industry.

Around 850 workers at the Washwood Heath factory in Birmingham were told to go home – and warned they may not be paid wages they are owed.

LDV is now on the brink of becoming the first vehicle manufacturer to go out of business in the recession.

Unable to secure funding to keep the business going while they try to raise support for a rescue plan, bosses said today they had applied for administration.

Chief executive Evgeniy Vereshchagin is still hoping for an 11th hour rescue. He said the company had until May 6 for its administration to be processed.

As well as around 850 people who are employed at LDV’s Birmingham factory and the 1,200 in its sales and distribution network, an estimated 4,000 more work for companies that supply parts. Mr Vereshchagin said talks were continuing with a potential investor – believed to be Weststar, a Malaysian vehicle importer.

But he warned: “They, like many people at this time, are finding it difficult to secure funds.”

Staff were told: “The deterioration in the position of the business has forced the directors to apply for administration. This does not mean the business is in administration yet. Our application will be processed on May 6 and we still have until that time to secure funding for our plans.”

Employees, who had been paid up until the end of last week, have been warned LDV cannot confirm whether it will be able to make any future payments.

Only the senior management team will remain at the factory. All other staff have been told to leave the site. The plant has not produced a van since December due to lack of funds.