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Ineos forced to shut down production on supplier issue

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Media starting to break that production of the IG is going to be paused until 2025 due to financial troubles at one of its suppliers.

The UK dealers were just told and mine told me today but I didn't post anything until I saw it starting to appear in the media. I cant see behind the paywall but I wonder if this is recaro?
 
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DaveB

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HereinDaRockies said:
I am hoping Ineos is not using this Recaro trouble as convenient excuse to pause production, pause operational bleed.

On the other hand, it’s entirely plausible that ineos doesn’t have the maturity to establish resiliency in their supply chain. One supplier’s hiccup shuts down the entire operation.

I wonder if the incentives will now be pulled back, due to supply constraint through the rest of 2024
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Most car manufacturers have multiple model lines made in multiple factories, or even countries, and so work with many different suppliers of things like seats.
Ineos Automotive has one model and one factory and therefore only one set of seats from one supplier.
It is only Recaro Germany that is in trouble so they may b e able to source from other Recaro factories.

Remember that the car is tested and approved for sale, homologated, with those seats only.
It impacts airbags, seat belts, crash tests, mounting points.
The rear seat folding system to allow for the electronics and batteries to be mounted underneath.
The production line is set up for mounting them.
The staff are trained on how to install them.

They can't just nip down the corner auto store and buy a couple of seats.
 
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AWo said:
Pausing the whole production because seats can't be delivered? Stopping all? Isn't that far more expensive than continuoing witout seats?

When I was at MAN Trucks around 2006 in Dachau/Germany they received no fuel tanks from the external supplier. So the trucks were pulled outside, parked and had to wait to get them fitted them later.

I don't believe that.

BTW, if Ineos doesn't pay their bills on time, a supplier can get in serious trouble, as they have to pre-finance the whole game. That can even kill
medium-sized companies.

AWo
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There seems to be a lot of theories about Ineos not paying their bills and going broke etc.
I very much doubt Ineos Automotive was planning to be making a profit in the first 5 years or so of sales.
Any new startup company that planned that would be crazy.
Ineos as a group are very profitable.
 
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I’m sorry to hear this for all the great employees who will be temporarily laid off first and foremost.

I’m also sorry for all of the committed customers with IGs on order.

It’s also going to be very hard to see the loss of revenue for dealers and for INEOS. 3+ months would be a massive impact on cash flow for both suppliers and retailers.

I suspect new prices will remain MSRP+ on new units now given supply / demand and the need for retailers to leverage every possible profit dollar to float what will be a lack of supply as inventories run out and they wait for new allocations when the factory gets going again.
 
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Asnes said:
I’m sorry to hear this for all the great employees who will be temporarily laid off first and foremost.

I’m also sorry for all of the committed customers with IGs on order.

It’s also going to be very hard to see the loss of revenue for dealers and for INEOS. 3+ months would be a massive impact on cash flow for both suppliers and retailers.

I suspect new prices will remain MSRP+ on new units now given supply / demand and the need for retailers to leverage every possible profit dollar to float what will be a lack of supply as inventories run out and they wait for new allocations when the factory gets going again.
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The workers have all just returned from their August holidays so not good timing.
France has strong unions so I assume they will still get paid.
It would be silly for Ineos to risk losing specially trained employees.
 
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Asnes said:
I suspect new prices will remain MSRP+ on new units now given supply / demand and the need for retailers to leverage every possible profit dollar to float what will be a lack of supply as inventories run out and they wait for new allocations when the factory gets going again.
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Luckily, at least for the US, there is a very good stock pile of orders at dealers currently and either at the port or on the way over (also saw plenty of US bound vehicles on the line being built yesterday (and was fortunate enough in our timing to see a few roll off the line)
 
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1) shutting a line for a seat is suspicious. It isn't just the supply chain that's screwed for the rest of that car, but also the workers without paychecks.
2) if they start offering scheel-mann vario xxl's as an option over these turd buckets I'll be pissed.
 
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If Ineos were to keep the production line running without having clarified a follow-up supply of seats from another supplier, they would run into an even bigger inventory problem. The WIP stock of finished vehicles only without seats would be extremely high. They already have a high stock of finished vehicles. They will try to bring this stock onto the market with discount campaigns at favourable conditions. Therefore, those who try to sell their young Grenadier second-hand now will be disappointed at the price they can achieve. Take a look at how many vehicles are being offered at absurd prices on the sales portals.
 
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Tazzieman said:
6500 left, from 9000 built.
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We have one in the neighbouring town. And the owner has the same problem every year when he has to attach the large magnetic sign with the start number to the doors at the rallye. He now always has double-sided adhesive tape next to the flux compensator. :ROFLMAO:
 
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rovie said:
If Ineos were to keep the production line running without having clarified a follow-up supply of seats from another supplier, they would run into an even bigger inventory problem. The WIP stock of finished vehicles only without seats would be extremely high. They already have a high stock of finished vehicles. They will try to bring this stock onto the market with discount campaigns at favourable conditions. Therefore, those who try to sell their young Grenadier second-hand now will be disappointed at the price they can achieve. Take a look at how many vehicles are being offered at absurd prices on the sales portals.
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If Ineos has to move to a different seat supplier the existing mounting points for the seats may not work with the new seats.
It would be a total mess if they manufacture the vehicles and then can't fit seats.
I think it is a very sensible decision to halt production.
It was only a few years ago we saw images of vehicles manufactured without microchips sitting in fields and parking lots.

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