Land Rover, a Ford subsidiary, is reported to have taken legal action against KPMG after the firm demanded payments of £45m for collapsed engineering company UPF-Thompson, the sole supplier of Discovery chasssis to the car maker.
As UPF?s receiver, KPMG has demanded the upfront payment before they will deliver any more chassis, including a goodwill payment of £35m.
But its actions have enraged the American owner of Land Rover, which is now urging other car manufacturers to blacklist the big five firm.
Ford said the receivers’ demands could force it to suspend production at the Midlands plant, threatening 1,400 jobs, with a possible knock-on effect that could see as many as 10,000 jobs going at other suppliers.
KPMG said the demands were in line with its legal obligations to realise the maximum value from UPF’s assets, which included its customer base.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements