Ineos Grenadier Production Comes to a Stop as Supplier Issue Rears Head

Ineos has stopped the production of its Grenadier SUV and Grenadier Quartermaster pickups at its Hambach plant in France due to a component shortage caused by a supplier issue. The problem stems from a financially troubled supplier, speculated to be Recaro Automotive, which filed for bankruptcy at the end of July due to significant financial difficulties, including substantial price increases and the loss of a major contract.

An Ineos representative told Automotive News Europe that the problematic supplier was “in a pre-insolvency situation.” This situation has left Ineos grappling with a gap in production that could last until early 2025.

“Our production at Hambach has encountered a critical component shortage beyond our control, causing a pause in our production schedule,” an Ineos spokesperson stated to Motor1.com.

Despite the pause, the company is receiving positive feedback from Grenadier customers globally and has expanded to major new markets, including Mexico and China, this month.

The impact of the halted production is significant. Not only does it affect the delivery schedule for eagerly waiting customers, but it also disrupts the momentum that Ineos had built up. The company had planned to be live in over 45 countries by this year’s end. By summer, they had hit their annual sales target for 2023 and aimed to sell over 20,000 cars by the end of the year.

“We really want to produce vehicles for our customers, so this pause is extremely frustrating,” noted the spokesperson. Ineos has vowed to leave “no stone unturned” in its efforts to resume production and meet demand as quickly as possible.

To understand the broader significance, one must consider the inherent complexity and challenges of automotive supply chains. Supply chain difficulties often create ripple effects, influencing multiple facets of operations, from assembly lines to international market strategies. As Ineos targets significant market expansions and aims to stabilize its production, the halt threatens to slow this progress.

In terms of the supplier issue itself, the suspected supplier, Recaro Automotive, has faced severe financial strain, leading to its bankruptcy. This development has, in turn, directly impacted Ineos, highlighting the interconnected nature of the automotive industry’s supply chain.

Reflecting on these challenges, the spokesperson said: “Automotive supply chains are always complex and challenging, but this hits at such a busy time for us. We’re getting great feedback from Grenadier customers around the world, and are already live in over 45 countries globally. We are launching in major new markets—Mexico and China—this month. By this summer, we had sold as many Grenadiers as we had for the whole of 2023.”

Looking forward, Ineos is cautiously optimistic. Their conservative scenario suggests resuming full production by early 2025.

“We have strong momentum and are on track to reach over 20,000 cars before the end of the year… we are working hard to get back to business.”