Ineos Automotive Restructuring

[HereinDaRockies]

Damn

 

[Logsplitter]

Only time will tell what that actually means apart from laying off head office staff.
On a side note I wonder how Ineos Kavango are doing. ? It’s gone very quiet on that front

 

[HereinDaRockies]

Only time will tell what that actually means apart from laying off head office staff.
On a side note I wonder how Ineos Kavango are doing. ? It’s gone very quiet on that front

safari vehicles? The addressable market on that is probably dozens of millions per year…

 

[Logsplitter]

safari vehicles? The addressable market on that is probably dozens of millions per year…

The plan with Kavango was to make all Grenadier safari vehicles but they’re too expensive and Toyota is way more popular, so they continue to convert Toyotas along with a few Grenadiers.

 

[Zimm]

Ah oh.

Please open source all the programming before closing the door.

 

[LabRat]

Meh, only time will tell. Lots of hand wringing when Polaris spun out Indian Motorcycles a month or so ago, expect the same now.

 

[Commodore]

Hmmm. Guess we will wait and see.

Sounds like most of these cuts have already happened. Many are attributed to switching from an agency model to a dealer model. Typical shitty messaging from Ineos corporate. Good God I wish they would hire someone competent in PR.

 

[HereinDaRockies]

Hmmm. Guess we will wait and see.

Sounds like most of these cuts have already happened. Many are attributed to switching from an agency model to a dealer model. Typical shitty messaging from Ineos corporate. Good God I wish they would hire someone competent in PR.

How do you know? All I have seen is this or announcement

 

[HereinDaRockies]

Ah oh.

Please open source all the programming before closing the door.

BMW please come in with an offer Jim Radcliffe can not refuse

 

[Commodore]

How do you know? All I have seen is this or announcement

AI pulled info from trade publications that are paywalled

 

[Cncpt2]

• INEOS Automotive, part of the wider INEOS Group , plans to cut “several hundred” jobs from its global workforce of about 1,700. The cuts will focus mostly on office/head-office roles in the UK and across Europe (but reportedly not at its French factory in Hambach as of now, which builds the Ineos Grenadier). The Guardian
• The parent company (INEOS Group) is also under pressure and has announced other job-cuts and plant closures in its chemicals business (e.g., 60 jobs at its Acetyls plant in Hull, UK) citing broader structural headwinds. The Guardian+1
• Specifically for the automotive side, there are reports of major financial losses: the Grenadier business reportedly lost €290 million last year and cumulative losses since 2018 now exceed €1.4 billion. Also, debt for the automotive division (and backing from parent) is significant. Financial Times
• INEOS Automotive is also considering relocating production of the Grenadier from France to the U.S. (in part to avoid 15 % tariffs on European car imports into the U.S.). Current financials and global sales numbers (especially in the US), suggest the automotive division is under significant stress and may not be able to sustain operations in the near future without capital infusion and/or buyout.

 

[ADVAW8S]

I've said it before on here and other areas, the unwillingness or lack of addressing negative media will hurt in the long run. You can have a million car recall on establish brand and people will not blink an eye on buying another one. Hell the level of due diligence will be minimal. A new brand needs to be diligent in addressing concerns. What has been the biggest knock all social media "experts" stated at launch? Return to center. It went from annoyance to your going to die real quick. Crickets from Ineos PR turning a negative to a positive. With no advertising people turned to web to get information. The front drive shaft is another example, small subset have had a issue. I'm not discounting that there may be more. But when you see it being a large driver of the narrative now on social media. You even have ppl come to this site being scared off. Who the F knows if the issue was the models from 2023 and 2024 and the new models have a stronger boot. All it takes IA to step up and address concerns and add confidence to prospective buyers.

 

[RY-Journeyman]

Hmmm. Guess we will wait and see.

Sounds like most of these cuts have already happened. Many are attributed to switching from an agency model to a dealer model. Typical shitty messaging from Ineos corporate. Good God I wish they would hire someone competent in PR.

That would cost money. Remember they are cost cutting for efficiency. Haha.

 

[RY-Journeyman]

• INEOS Automotive, part of the wider INEOS Group , plans to cut “several hundred” jobs from its global workforce of about 1,700. The cuts will focus mostly on office/head-office roles in the UK and across Europe (but reportedly not at its French factory in Hambach as of now, which builds the Ineos Grenadier). The Guardian
• The parent company (INEOS Group) is also under pressure and has announced other job-cuts and plant closures in its chemicals business (e.g., 60 jobs at its Acetyls plant in Hull, UK) citing broader structural headwinds. The Guardian+1
• Specifically for the automotive side, there are reports of major financial losses: the Grenadier business reportedly lost €290 million last year and cumulative losses since 2018 now exceed €1.4 billion. Also, debt for the automotive division (and backing from parent) is significant. Financial Times
• INEOS Automotive is also considering relocating production of the Grenadier from France to the U.S. (in part to avoid 15 % tariffs on European car imports into the U.S.). Current financials and global sales numbers (especially in the US), suggest the automotive division is under significant stress and may not be able to sustain operations in the near future without capital infusion and/or buyout.

US manufacturing makes some sense due to tariffs, market size but also that many BMW SUVs already get made there and made well. No issues on that front that I can see. For instance BMW X5 has been built in USA for years without any major quality or supply issues. Can’t see how it makes any difference to the end buyer.

Head office cost reduction was inevitable once they moved past the initial intensive development stage. No surprise there.

Profit vs loss - not too concerned - I can’t imagine it would have been anything other than loss making for the first 5-10 years. Look at Tesla - still barely turning a profit and already 10+ years old. Same with most mine sites. Heck even governments run mainly at a loss nowadays - how many trillions is the US in debt yet still not bankrupt. . The net profit doesn’t seem to be a major issue currently in my mind. In another 5 years yes.