Tuesday 7th July 2020

Ineos Grenadier could be built in France

New negotiations with Daimler might spell the end for planned factories in Portugal and Bridgend

---

Ineos has today announced that negotiations are underway with Daimler to assume control of the 'Smartville' production facility in Hambach, north-east France. If the talks are successful, the factory would replace both of the previously proposed Grenadier assembly plants - chassis manufacture in Portugal, and final assembly in Bridgend.

A statement highlights "delays in our development plans" related to Covid-19, but also of "some new opportunities in terms of existing manufacturing capacity that were not previously available to us." The appeal of Hambach is almost certainly linked to the investment recently lavished by Daimler on the site, equipping it to a build a larger SUV alongside the long-running city car; outlay which has since gone to waste following the decision to move Smart production to China. Acquisition of such a facility would clearly deliver Ineos a running start.

The statement adds: "Specifically, Ineos Automotive has entered detailed discussions with Mercedes-Benz on the acquisition of its Hambach site in Moselle, France. We have therefore suspended the post-lockdown resumption of work at our sites in Wales and Portugal pending the outcome of this review. Further updates will follow in the coming weeks."

That wait obviously leaves Bridgend and Portugal on tenterhooks for the duration. The fate of both sites hinges on the outcome of the negotiations, which are evidently serious enough for Ineos to have ceased development work. The advantages of combining operations under one roof likely makes Hambach the preferred solution - and that's before factoring in the impact of Brexit later this year. Shipping engines and gearboxes to France may yet prove considerably easier than sending them to Wales in 2021.

A more convenient logistical situation for Ineos will be of no consolation to the anticipated 500 jobs at Bridgend that the firm had earmarked for creation in the aftermath of Ford's exit from the region. But if the past few months have taught us anything, it's that the automotive industry is as supremely vulnerable to financial disruption as any other. Perhaps more so than most. That Ineos is chasing the biggest bang for its investment buck is indisputably prudent - even if it does further distance the Grenadier from its nominal position as the spiritual successor to a very British sort of off-roader.

---

• Ineos Grenadier officially unveiled

 

[Numeric]

it does seem that every time the Welsh government gets involved in motoring it all goes Pete Tong - from motor racing to TVR to this. Is it the same in other sectors?

Also seems to point to a lack of commitment from the owner to the UK and/or a Dyson like reality check that building a car is a very hard thing to do - very hard indeed so having a purpose built plant may be beneficial - but I also wonder if the local government is willing to stump up a lot more cash - they have history of such things!

Actually when I read more and understood that Ineos had considered the plant some years before it seems that Ineos was never commited to the UK per se but simply a good business solution, so I imagine was always looking for the highest support bidder. They may even look for a payment from Daimler as Phoenix did from BMW, as damiler may consider this a better result than closing a plant with resulting bad publicity and repayment of grants they may have recieved and redundancies.

Good business - sad for excited workers at Bridgend

Edited by Numeric on Tuesday 7th July 12:22

[Numeric]

egomeister said:

Numeric said:

it does seem that every time the Welsh government gets involved in motoring it all goes Pete Tong - from motor racing to TVR to this. Is it the same in other sectors?

Also seems to point to a lack of commitment from the owner and/or a Dyson like reality check that building a car is a very hard thing to do - very hard indeed!

Shame and another one for the miserable gits to say I told you so - which to be honest I have become over the years myself.

I'd disagree a bit with the lack of commitment comment. Buying unwanted facilities from major players is how Ineos have built their chemical business - taking on an exitsing factory would be consistent with this.

You were right to pull me up so I have now edited. As you say this is ultimately business not patriotism, and this could be very shrewd.

[Numeric]

oilit said:

Just rename it Talbot/Matra Rancho and building it in France will make sense !!

I have to say - the small amount of patriotic blood in me says that building it in Europe makes it slightly less appealing to me (I would like to buy stuff that supports british workers), but probably much more appealing to the European market so i say it makes good business sense. UNLESS it fails, in which case the low sales will be the least of his problems, the cost of getting rid of the staff in France if their employment continues from Daimler to Ineos will be eye watering I suspect.

Edited by oilit on Tuesday 7th July 12:35

But if it fails the issue is not Daimler's - it's a bankrupt company that has only an old factory and some vehicles that didn't sell - Daimler is long gone just like BMW was with Longbridge - hence BMW paid so much to Phoenix to get shot.

This will be a separate company to INEOS chemicals I assume and very stand alone. Heck if you were a bit cheeky you could cross charge very large fees from one entity to other entities and close the plant and make a lot of cash for the owners of the secondary entities - now where have I seen that done before...