Ineos forced to idle output on parts shortage

Ineos Automotive is pausing production at its factory in Hambach, France, because of financial troubles at one of its suppliers.

Output of the Grenadier off-road SUV and the Quartermaster pickup is being halted for an undetermined period as the U.K. automaker no longer has access to a crucial component because the part's supplier is in financial trouble.

"The supplier is in a pre-insolvency situation," Ineos Automotive CEO Lynn Calder told Automotive News Europe on Sept. 19. "It's a trim part but one that we can't sell the car without."

Calder declined to name the supplier and said she cannot give an estimate on how long it will take to correct the problem and restart output. "It might be toward the end of the year or early next year," she said, but it could be sooner.

"I know that the [supplier] is working really hard to try and turn around their business, and I want to give them every opportunity to do that," Calder said.

Ineos is also seeking out a secondary supplier for the component, she said. "We will be leaving no stone unturned to try and get back online as fast as possible," Calder said.

Ineos Automotive said it will start informing retailers and customers about the problem starting Sept. 19.

The shutdown comes as the automaker prepares to launch the brand in Mexico and China, bringing its global presence to nearly 50 markets. Both of those launches will happen as planned, Calder said, adding that the company continues to see strong demand.

"Our momentum is great," she said. "We were looking at first-half 2024 number last week, and we are up more than 300 percent versus last year. We are a couple of months away from hitting our 20,000th delivery to a customer."