Workers delivering auto parts to Tata Motors-owned Jaguar Land Rover factories in the UK are expected to unveil a walkout plan next week.
Logistics firm DHL has been holding talks with the staff union, which is now expected to give notice of industrial action on Tuesday.
According to The Sunday Times, DHL contacted JLR chief executive Ralf Speth on Friday to inform him that it had failed to reach an agreement with Unite, the union.
DHL, which employs 1,800 people at JLRís three main plants in the country, manages warehouses and the delivery of parts to production lines. A logistics blockade could bring operations at Solihull and Castle Bromwich in the Midlands and Halewood on Merseyside to a standstill, forcing a shutdown.
It has also emerged that Unite is seeking legally binding assurances from the car maker that its plant in China, due to open in 2015, will not affect production in Britain.