Leyland DAF supplier fights off court action

LEYLAND DAF'S receivers yesterday failed in a High Court attempt to force a key parts supplier to resume deliveries to its threatened truck and van plants, writes Michael Harrison.

Unless supplies of brake and clutch assemblies from Automotive Products of Leamington Spa, Warwickshire, are restored, production at Leyland DAF could grind to a halt within days, putting 3,500 jobs at risk. AP is refusing to resume supplies until it is paid pounds 758,000 owed to it for parts supplied before Leyland DAF went into receivership in February.

In the High Court, the Vice-Chancellor, Sir Donald Nicholls, refused to rule that AP was in breach of EC trading laws. Lawyers acting for the joint administrative receivers, John Talbot and Murdoch McKillop of Arthur Andersen, argued that AP was abusing its dominant position since there was no alternative supplier.

Mr McKillop, who has already made more than 2,000 Leyland DAF workers redundant, said: 'I am clearly very disappointed with the outcome. If we cannot resolve this problem it will potentially have very grave consequences.'

Dr John White, managing director of BBA, the engineering group that owns AP, said: 'We are extremely anxious to co-operate with the receivers and we are involved in on-going and delicate negotiations. It is my wish to be helpful and to achieve the survival of Leyland DAF.'