Discovery shutdown looms for Land Rover

By ALASTAIR SLOANE

Land Rover is facing a shutdown of its Discovery production line as its exclusive chassis supplier UPF-Thompson battles bankruptcy.

The British four-wheel-drive specialist has refused to meet UPF-Thompson's demands for a £35 million ($120 million) insolvency bailout and is trying to reach a settlement with the UPF-Thompson receiver, auditing firm KPMG.

The debts, estimated at £50m, are believed to be unrelated to Land Rover. The dispute, now before a bankruptcy court, directly affects 1400 jobs in Britain, indirectly affecting up to 10,000 others.

Land Rover New Zealand marketing manager Anya Sheath said the volume of vehicles on the ground here and shipments already confirmed for New Zealand should ensure orders for the Discovery (pictured) would continue to be fulfilled until at least mid-year.

"But supply beyond then will depend on the outcome of events in Britain," she said.

Land Rover chairman Bob Dover is reported to have said Discovery production could be stalled for up to six months. But industry observers say the tooling-up process for a new chassis supplier could be fast-tracked if required.