Jobs to go as RBS winds down LVM
Lombard Vehicle Management (LVM) is to be wound down by parent company RBS, with the loss of almost 300 jobs in Birmingham over the next two to three years.
The car and van leasing business will now begin a 90-day consultation period with 98 employees out of the 397 the company employs nationwide. Efforts are being taken to employ the staff affected in other parts of the bank, according to an RBS spokesman.
The winding down process for the fleet leasing arm will take between two and three years to complete.
Management of contracts and vehicles is to be handed over to ALD Automotive, which has entered into a five-year agreement, under the Lombard banner.
ALD expects to fund more than 30,000 new vehicle contracts over the next five years.
"Having to cut jobs is the most difficult part of our work to rebuild RBS," the RBS spokesman said.
"The decision to close Lombard Vehicle Management was a difficult one but is a necessary step in our plan to de-risk and refocus RBS, making the bank safer and stronger. We will do all we can to support our staff, offer redeployment opportunities wherever possible, and keep compulsory redundancies to an absolute minimum."
RBS has been attempting to sell LVM since 2009 but has struggled to find a buyer.
LVM, which employs 397 nationwide and 295 in Birmingham, has a fleet of more than 60,000 vehicles.
