The FT reports that Land Rover has approached GKN, the British-based automotive and aerospace company, as a possible alternative source of chassis for the Discovery model following a dispute with the receivers – KPMG – for existing and bust supplier, UPF-Thompson.

KPMG has demanded payments of about £45 million (approximately $US65 million) from the SUV maker to secure the future of UPF-Thompson, its only supplier of Discovery chassis.

UPF-Thompson, which employs 600 and has supplied Land Rover since the 1950s, has accumulated debts estimated at over £50m – virtually double its annual sales.

Production of Land Rover’s mid-range Discovery SUV range could be suspended due to the dispute, laying off 1,400 production line workers and possibly affecting 10,000 further jobs at supplier companies.

Land Rover has responded angrily to the KPMG demand. Earlier this week, Land Rover corporate communications press officer James Andrew told just-auto that the company was “very, very disgruntled” at KPMG’s action.

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“We can’t believe it’s being handled in this way,” he said. “KPMG is a very reputable company but they are not handling this in a reputable way.”

Today’s FT report says that the Ford subsidiary has invited GKN to consider tooling and supply arrangements for its Solihull plant in the Midlands. The report adds that one of the options being considered is that GKN could emerge as a possible buyer for UPF.