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Land Rover rocked by £45m receiver demand

Discovery production is threatened by a dispute as Land Rover prepares to open a ride and drive Adventure Zone at the Bluewater shopping and entertainment complex near Dartford in Kent.

Dealer stocks of Discovery will quickly dry up if a dispute with an insolvent West Midlands supplier is not resolved by the end of this month.

Land Rover will next week seek an injunction to maintain supplies. KPMG, receivers for UPF-Thompson which provides the Discovery's chassis, wants £45m from Land Rover, claiming reliance on its body frames is a commercial asset.

Land Rover has described the claim as an “extraordinary demand creating a dreadful situation” with 1,400 Solihull plant jobs at stake and a threat to 200 other suppliers. Bob Dover, Land Rover's chairman, is said to be “incensed by an attempt to hold his company to ransom”.

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