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?

 

[DoubleDoom]

Tend to agree. My chassis number is mid 4000’s and was built June 23. Gut feel is that 20k won’t be too far wrong unless Ineos are not building sequentially numbered vehicles.

We know from the VINs posted that its over 22,500 built now. That doesnt equate to sales though (stock, gifts, loaners, pre-production etc).

 

[AWo]

I read this 20,000 car statement again form TopGear....if the Ineos guy claims overall, so 2023 and 2024, I belive that, yes. Maybe I missed that point, mea culpa.
I had first the impression it is only about 2024. If that is the case, then I do not believe the number.

AWo

 

[Tx246]

Keep in mind Ineos is taking delivery of vehicles for their chemical business and putting these into use, or at least that was told to me by Ineos Auto USA previously. I don't think any of these would be high visibility units at this point, so that mught explain some of the disconnect.

I also think Ineos specifically not naming Reacaro is important. They are trying to sort through it without damaging Recaro.

If I was a Recaro material supplier, I would imagine my typical payment for product material contracts would be under review, thus delaying payments. In the US, we typically have Net 30/Net 60/whatever. When a company goes into the bankruptcy system, these contracts get put on hold/renegotiated/etc.... I imagine they are not going to supply materials until an agreement is made between parties.

 

[AWo]

First the Ineos sites were forced to switch to EV's for site traffic just to be replaced by IC vehicles now?

Aha.

AWo

 

[CrazyOldMan]

Keep in mind Ineos is taking delivery of vehicles for their chemical business and putting these into use, or at least that was told to me by Ineos Auto USA previously. I don't think any of these would be high visibility units at this point, so that mught explain some of the disconnect.

I also think Ineos specifically not naming Reacaro is important. They are trying to sort through it without damaging Recaro.

If I was a Recaro material supplier, I would imagine my typical payment for product material contracts would be under review, thus delaying payments. In the US, we typically have Net 30/Net 60/whatever. When a company goes into the bankruptcy system, these contracts get put on hold/renegotiated/etc.... I imagine they are not going to supply materials until an agreement is made between parties.

Yep - they’re going to stretch AP and try to pull forward AR - anything to stabilize cash-flow. And their workers’ council agreements are open for restructuring. Ineos has to be looking at alternatives - but it could be the design is Recaro’s and not theirs, so redesign and testing/certification are complicated.

 

[ecohen2]

I don't get this, why does everyone think Grenadier is going bust, everything I have read says its a vendor problem:

"She said the supplier is responsible for a certain trim component that Ineos' vehicles can't be sold without, and that Ineos is looking for an alternative source for the component.​

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She added that the current supplier is attempting to turn around its business, but the delay, if no alternative is found, might mean Ineos won't be able to restart production until late this year or even early next year."​

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Ineos Grenadier production stopped, possibly into 2025

Ineos has halted production due to financial issues at a supplier responsible for a critical trim component.

www.motorauthority.com

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Ineos is not a dumb or desperate company... Stellantis might be but not Ineos...

 

[Tazzieman]

I don't get this, why does everyone think Grenadier is going bust, everything I have read says its a vendor:

Not everyone thinks Grenadier is going bust. Just a few pessimists , a few miserable haters who will never forgive SJR moving the planned factory to Europe & who revel in any schadenfreude - and the usual lazy and dopey journalists.

 

[ecohen2]

Not everyone thinks Grenadier is going bust. Just a few pessimists , a few miserable haters who will never forgive SJR moving the planned factory to Europe & who revel in any schadenfreude - and the usual lazy and dopey journalists.

Not only is this just a vendor problem, but the plans to expand are still happening. Again, they appear to be doing quite well...

"Ineos is on the verge of launching in China and Mexico, which will grow its list to almost 50 countries. Calder told Automotive News that those launches will still happen."​