Connaught, which makes electric vehicle and hybrid technology, has confirmed it is in talks with van maker LDV, which went into administration with the loss 800 jobs two weeks ago.

Connaught was formed with a vision of delivering carbon neutral transport.

It has several similarities with LDV, including a focus on electric vans – LDV made an electric version of its Maxus van and was hoping to make its future in zero-emission van production.

Connaught makes the hybrid+ system that reduces CO2 emissions by up to 24.7% on diesel engines.

It said there is an opportunity to fit the hybrid system to the LDV platforms, offering “a unique business case for LDV, in supplementing the company’s already green credentials, with a production ready hybrid variant suitable for installation across the range”.

Connaught has introduced advisors specialising in fund raising to the administrator, PricewaterhouseCoopers.

Tony Martindale, Connaught CEO said: “Through joint collaboration and government support, LDV can grow to be a jewel in the crown within the European automotive sector, once unshackled from the traditional approach to UK manufacturing, and by embracing world-class low-carbon technologies developed in Britain.”