Thousands of jobs hang on Land Rover dispute

Land Rover have revealed that production of one of its most popular vehicles, the Discovery, may have to be suspended following a dispute with one of its suppliers.

The row revolves around an engineering company, UPF-Thompson, which has gone into insolvency. As UPF is the sole supplier of the chassis for the Discovery, its receivers have approached Land Rover for a multi-million payment to secure the future of the firm.

However, Land Rover have so far refused to pay, and unless a settlement is reached in the next fortnight, production of the Discovery will cease from the start of February.

The row also threatens to impact upon the future of 1,400 employees at the company’s plant if the issue is not resolved in time. Speaking on the Radio 4 Today programme, Land Rover chairman Bob Dover revealed that it could take several months before the vital component is resourced and retooled. He also warned that the situation could have far reaching effects throughout the West Midlands, as other suppliers involved in the production of the Discovery would be forced to call a halt to their business.

Responding to the situation, Mark Orton, a partner at KPMG and joint administrative receiver for UPF, retorted that they had no wish to see a halt in production, but that Land Rover’s reliance on the company meant that they “should be obliged to pay more than they would normally”.

Currently under a court injunction to supply Land Rover with parts until 25 January, UPF have until then to find a solution, with many thousands of jobs depending on the outcome. (CL)