The latest announcement that Birmingham van maker, LDV has been bought by a Chinese company should send warning signals to the Government, says a leading automotive expert.

Professor David Bailey from Coventry University's Business School said: "It is certainly sad news for the region as jobs, capacity and potential research and development expertise will be lost forever.

"This wouldn't have happened in France or Germany, of course, where the government stance towards industry is more supportive. We need to look again at how the administration process works in the UK."

Even though Eco Concept, the new owners, have said that they plan to start a new business in the West Midlands producing and assembling low volume specialist light commercial vehicles, it could take up to 18 months before vehicle trials begin.

Professor Bailey continued: "This could be seen as the beginning of the end for the production of light commercial vehicles in the UK - which have been made here in quite significant numbers. Mass van demand would then have to be met by imports."

Professor Bailey thinks that the Government needs to up its game by supporting the research and development of electric vehicles if the UK still wants a car industry to call its own.

He said: "The question for the UK government is whether it actually wants van production in the UK. If it does, it needs to step in with a financial package to support Vauxhall operations in the UK and it needs to get behind green van producers like Coventry-based Modec.

"The electric car market is growing rapidly, especially in the depot-to-depot market in urban areas. Overseas this has been supported by tax breaks - something the government here could do to help firms like Modec in Coventry.

"As battery life improves and the recharging infrastructure in urban areas develops, this market will grow so we now need to get behind van producers - especially the new green van producers - here in the UK, and think creatively about how we can stimulate what will be an important industry in the future.

"Tax breaks, public procurement, government loans, R&D support and much more needs to be part of the policy mix so I urge the Government to act fast before it's too late."