Plans for Malaysian firm Weststar to take over Birmingham-based van maker LDV are being finalised offering hundreds of workers hope that their jobs could be saved.
A last minute deal between Weststar, the struggling van maker and the Government is being agreed in an attempt to prevent the firm going into administration.
The Government has pledged a loan of up to £5 million to help the company when Weststar, which has agreed to buy the business and invest money in the plant, takes over.
LDV was on the brink of collapse with 850 workers at the firm fearing they would be made redundant and thousands of other workers at other companies would also be lost.
However, Weststar has agreed to buy the entire business offering some rare good news for the beleaguered motor industry.
Guy Jones, a spokesman for LDV, said: "This is not the end of the process but it is very good news for everybody. This is a significant step. This is the government getting involved which we have asked them to do for a long time."
Unions welcomed the breakthrough, but said trying to secure support for LDV had been like "pulling teeth".
© Press Association 2009