UK: Unipart hangs on to Rover contract - paper

By just-auto.com editorial team | 22 May 2001

Caterpillar's replacement of Unipart as Rover's spare parts distributor has been put on hold for two years, the Mail on Sunday newspaper reported.

But, the paper added, Unipart will lose a Land Rover contract worth an annual £100 million ($US144 million) next February.

Last October, Rover told Unipart it was terminating its parts distribution contract in favour of Caterpillar.

But the Mail on Sunday said Unipart has now won a two-year reprieve though no reason for this was cited.

The newspaper added that Unipart has signed a draft agreement with Rover for the storage and distribution to dealers of the car maker's parts and Unipart's own 'universal' spares until April 2004.

The Mail on Sunday said that Unipart is trying to expand its parts operations into other sectors such as rail and information technology and now has a contract with Jaguar to limit its reliance on Rover.

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