Ford#;s UK SUV subsidiary Land Rover was back in the High Court yesterday seeking a further injunction to prevent the receivers of bankrupt chassis supplier UPF-Thompson from halting supplies, the Financial Times said.
A judgement was likely early next week, the newspaper added.
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The FT said the latest legal move came after Land Rover failed to agree a deal with UPF-Thompson receivers KPMG which had demanded a large increase in chassis prices and a goodwill payment of £35 million for continued deliveries.
UPF is the sole chassis supplier for Land Rover’s Discovery model, the FT said. It also supplies General Motors#; Vauxhall, DaimlerChrysler and Rolls-Royce but called in the receivers last month.
The FT said that Land Rover has warned it will have to stop Discovery production and lay off more than 1,400 workers if it cannot source chassis.
Land Rover chairman Bob Dover claims KPMG is seeking a payment of £45 million, including the increase in chassis prices, though the contract is worth only £16 million a year, the FT added.
Land Rover earlier won a temporary injunction which forced KPMG to continue supplying chassis from UPF until January 27.
Last week, Dover told just-auto.com on the sidelines of the new Range Rover lauch that the two sides were in negotiations but there had been no successful outcome so far.
