Ineos forced to shut down production on supplier issue

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?

 

[rovie]

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.

View attachment 7870711 View attachment 7870712

Exactly, that's how it is!

 

[Tazzieman]

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.

Fun fact: In the Back to the Future movie they had to use a Porsche 928 V8 engine sound to appear credible
I've got that sound, without the attached DeLorean!

 

[AWo]

Ineos as a group are very profitable.

Not now, not in Europe since last year.
Plus very, very expensive projects where also is a lot of trouble, like the new cracker plant in Antwerp or the joint venture with SINOPEC in China with a new plant to be build. These two eat up very, very much money. We're talking about Billions here... and at least Antwerp is facing huge delays and problems.

Rumors? I wouldn't call it that way. A supplier or sales partner gives nothing about when Ineos has planned to become profitable. They need to get paid on time.

AWo

 

[DenisM]

My slightly rattling rear passenger seat seems less important after reading the above!!

 

[rovie]

Fun fact: In the Back to the Future movie they had to use a Porsche 928 V8 engine sound to appear credible
I've got that sound, without the attached DeLorean!

If I had the choice, I would definitely prefer the 928.

 

[chrsbe]

Look at it this way: added exclusivity and increased value due to rarity!

This also came to my mind. Slowing down production before expanding to new markets might help keeping prices up. It forces dealers not to play their usual discounts game. Which is good for Ineos and in the end also good for us because the car will keep it's value....

 

[Tazzieman]

If I had the choice, I would definitely prefer the 928.

Mine is a 1981...DeLorean era, use it regularly. The V8 is indestructible and the rest is built like a bank vault...very much like a Grenadier in that regard.

 

[Tazzieman]

https://www.roadandtrack.com/news/a61775327/recaro-to-stand-on-solid-ground-again-bankruptcy/

Takes a while for lawyers and accountants to sort themselves out.

 

[AWo]

Expensive projects in the chemical sector, worth several billion euros, combined with the ongoing crisis since early last year, are draining their funds. The nearly 2 billion euros of money transfers made in 2020 and 2021 are likely not feasible right now. Then, there are a few money-losing ventures to keep alive, such as Belstaff.

Sales figures remain low, even though there has been a slight improvement over the past two months. In Germany, we're talking about quantities of around +10 vehicles or so — nothing more. In the UK, things remain poor; only the U.S. market is still performing well.

Then there's talk of opening the Chinese market, but China has absolutely no relationship with this type of vehicle.

In my view, Ineos Automotive is lacking cash flow. Stagnating sales are not bringing in enough money to keep the machinery running. Additional funds are needed, which is currently difficult. Now, having a supplier problem could be both a blessing and a curse: a blessing because they can hide behind this issue, and a curse because it's a real problem that further strains cash flow.

AWo

 

[anand]

if we're gonna dream ... kidding, not kidding.

View attachment 7870713

From doing countless 12+ hour days in those Tundra seats, they are super comfy.. they are certainly not as comfortable as the Recaros, but for a "standard" seat they are great, and awesome to sleep in as well

Then there's talk of opening the Chinese market, but China has absolutely no relationship with this type of vehicle.

First Chinese deliveries are slated to be before the end of the year based on what I have heard

 

[chrsbe]

Why do you think China has no relation to this kind of car? They love the G-wagon so much they already cloned it. I made this photo a few weeks ago. It is a bejing G. Such a detailed copy people are able to mount the original Mercedes front to the car in order to pretend it is the original.

 

[AWo]

Why do you think China has no relation to this kind of car? They love the G-wagon so much they already cloned it. I made this photo a few weeks ago. It is a bejing G. Such a detailed copy people are able to mount the original Mercedes front to the car in order to pretend it is the original.

I mean that they may or do love the G as a status symbol. But they have not such a relationship to 4x4's for offroad use, travel etc. Status is important there, so if they can choose between between a BMW or a, what(?), Ineos? Who ist this? they'll probably choose the BMW.

AWo

 

[landmannnn]

Just over 6 weeks ago:

"insolvency payments will keep its employees’ wages secure during the insolvency proceedings and that during the process, it’ll retain full production, fulfilling existing orders and fielding any new enquiries."

However, what is not uncommon is that the suppliers to Recaro (plastic mouldings, fabric suppliers, air bag manufacturers etc) have either been financially affected or just not putting too much effort into supply.

It is unheard of that a car production line would keep the line running without seats, so not a difficult decision from IA.

 

[chrsbe]

I mean that they may or do love the G as a status symbol. But they have not such a relationship to 4x4's for offroad use, travel etc. Status is important there, so if they can choose between between a BMW or a, what(?), Ineos? Who ist this? they'll probably choose the BMW.

AWo

I am not sure. They have the tank and you can see a lot of them on the road there. Also Landcruisers in various forms. Off course it depends where you are in China. Maybe the south has fewer offroad cars than north. But obviously there is a Market for 4x4 cars in China. Question is if Ineos manages to get a grip there.

 

[trobex]

Surely this is not just related to 'seats'. Which there are NUMEROUS contenders who make almost identical if not very similar arrangements. Having said that, the seats int he GREN - I hate them. Very uncomfortable and no lumber support.

 

[Trialmaster]

Huge sign of the Times. VW are in major trouble, who are threatening to layoff 30,000 in Germany. It is only the start, as cheap China crap is dumped in Europe.

We are all to blame for globalisation and need to be selective of what we buy.

On a positive, I think Ineos will weather the storm, but this is an opportunity to shift the cancelled orders in dealers. On Tuesday in Chandlers, Belton they had 8. One had been there for a very long time (15 months). Three were registered and had just been delivered from an Ineos compound and all at pre-increase prices.

 

[chrsbe]

I like them but a lumbar support is really missing. Maybe they are able to add it with their new seat supplier.

 

[Trialmaster]

Surely this is not just related to 'seats'. Which there are NUMEROUS contenders who make almost identical if not very similar arrangements. Having said that, the seats int he GREN - I hate them. Very uncomfortable and no lumber support.

I think it is. Why continue production, only to store them, when you already have huge stocks around the world waiting for buyers?

 

[Tazzieman]

Very uncomfortable and no lumber support.

I've installed 4 shelf brackets on the roofrack to support the 200x50mm sleepers I'm transporting over to build a seawall at our shack.
Works well

 

[AWo]

If you think the production stop further...a downward spiral starts. Stopping the production means also a stop for suppliers. Smaller ones and midsize ones (like Recaro themself) will suffer from that. That could mean a significant or even huge loss of income or even the death of suppliers, if their financial cushion (because of the overall automotive crisis) is already under tension. The may go bankrupt as a consequence or turn away from Ineos. That means Ineos may loose more than one supplier and that is something they will not be able to compensate. I strongly doubt that Ineos has the will and the power to keep all of their suppliers happy by helping them to cross the gap.

AWo