Sir Jim Ratcliffe considers moving Ineos Grenadier manufacturing to US

By the Editorial Team · Friday, October 2, 2026

Ineos Automotive reported a €913 million loss last year due to declining sales affected by US trade tariffs and costly restructuring, including layoffs and the suspension of its Fusilier hybrid project. The company is now considering moving production to the United States to avoid tariffs and support a projected 15 percent sales recovery in 2025.

Ineos Automotive, the manufacturer of the Ineos Grenadier 4x4, reported a significant financial loss amid challenges linked to US trade tariffs and restructuring efforts, prompting consideration of relocating production to the United States. The company posted a loss of €913 million last year, extending its cumulative pre-tax losses since inception to €1.73 billion.

The fall in revenues to €608 million, down 24 percent from €799 million in 2024, was largely attributed to a nearly 25 percent decline in sales linked to President Donald Trump’s trade tariffs on European car imports. Approximately two-thirds of Grenadier vehicles are sold in the US market, where tariffs initially reached as high as 50 percent and currently stand at 15 percent on the Grenadier, and 25 percent on the related Quartermaster pickup truck. Deliveries fell to 9,600 units in the year, falling short of the company’s earlier target of 25,000 annual vehicles, with an average wholesale price of about €63,000 per vehicle.

The company also underwent a significant restructuring that included laying off around 500 employees—nearly one-third of its workforce—and incurred a €338 million write-off related to its suspended Fusilier hybrid vehicle development program. Ineos had planned the Fusilier as a new model but paused the project due to insufficient market demand. Instead, company executives now aim to integrate hybrid technology by leveraging an existing 4x4 hybrid platform.

Ineos Grenadier’s production currently takes place at a former Mercedes-Benz factory in Hambach, France, near the German border. Although initially considered, the UK was not selected as a production site. Lynn Calder, chief executive of Ineos Automotive, acknowledged that shifting manufacturing to the US is “under great consideration,” citing the principle of “build where you sell” to mitigate tariff impacts. If such a move occurs, Hambach would likely remain operational, potentially becoming the European production hub for the Fusilier or other models.

The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) showed a loss of €125 million, excluding restructuring costs totaling €62 million. Additional depreciation charges and €270 million in interest expenses further contributed to the financial shortfall. Calder described the past year as “very painful” but expressed optimism about a sales rebound, projecting a 15 percent increase in the current year. This improvement has been supported by fleet sales contracts, including orders from military forces in Italy and Austria, security agencies in Eastern Europe, and the Royal National Lifeboat Institution in the UK.

The Grenadier remains a personal project of Sir Jim Ratcliffe, billionaire owner of the chemical company Ineos and co-owner of Manchester United. Ratcliffe developed the vehicle to fill a perceived market gap for a traditional off-roader following Jaguar Land Rover’s discontinuation of the classic Defender model in 2016.

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