British manufacturer Ineos is facing an unfortunate situation that has forced it to halt production of the Grenadier SUV at its Hambach plant in France. The decision comes as a supplier of a component for the model is experiencing financial issues.
Production of Grenadier Quartermaster pickup trucks is also at a standstill, and could remain so until 2025.
Supplier issue
The problem is that the unnamed supplier manufactures an essential part, forcing the company to halt production. Ineos didn’t specify what component is involved, but it’s sufficiently crucial and unique that there’s no short-term alternative, i.e. another supplier who could offer the same component.
Many observers are already pointing to seatmaker Recaro as the likely supplier. An Ineos representative told Automotive News Europe that the supplier in question was “in a difficult financial situation”. Recaro Automotive filed for bankruptcy at the end of July, citing “significant financial difficulties due to extreme price increases over the last few years of the crisis and the loss of a major contract”.
Recaro planned to continue seat production and fulfill existing orders during the insolvency period. It isn’t known whether things have changed in the meantime. It’s also possible the issue involves another supplier.
Ineos provided a statement to Motor1 regarding its decision to stop production:
“Our Hambach production site has been faced with a shortage of critical components beyond our control, resulting in a pause in our production schedule. Supply chains in the automotive industry are always complex and difficult, but this problem comes at a time when we're very busy.
We are making every effort to restart production and meet demand as quickly as possible. At present, we are following a cautious scenario that would enable us to return to full production in early 2025.”
Ineos in Canada
Last December, Ineos announced that it had finalized a deal with two Canadian retailers (in Ontario and in British Columbia) that will see the company’s models sold in Canada. They joined 19 retailers already lined up in the U.S.
We can only wish the company a speedy end to its problem with that supplier, whoever it is. It’s an issue that is beyond its control.