Ineos waits for San Francisco Bay Area dealership to open

Startup Ineos Automotive is still waiting to open a dealership in one of the wealthiest U.S. enclaves as the designated dealer there attempts to secure real estate and sort through other logistical issues.

Kuhn Ineos Grenadier in Redwood City, Calif., in Silicon Valley, is one of 18 U.S. dealerships that the British automaker initially named as official retailers in September.

Since North America sales began in November, the U.S. has quickly become the brand's top market as shipments ramp up and new nameplates are introduced. The brand has been delivering the $73,100 body-on-frame Grenadier SUV to Northern California customers from stores hundreds of miles away.

Vehicles have not been delivered to Kuhn Ineos Grenadier, an Ineos Automotive spokesperson told Automotive News.

"They never were operational," the spokesperson said. "They didn't meet the basic requirements to launch the dealership."

The spokesperson declined to specify those requirements.

Kuhn Ineos Grenadier is part of IVS International Holdings, which includes a range of businesses, according to the LinkedIn profile of Matt Kuhn, the company's president.

Kuhn said the tight schedule to open has proved difficult on numerous fronts since he was selected for the Silicon Valley franchise.

"With the way this has rolled out for us as a true standalone store, we really have had only six months or so to pull a dealership together and launch fully operational," Kuhn said in an email. "Couple this with a very difficult market to find real estate that will suit the purpose [and it] has been, to say the least, a very difficult task."

In late 2021, Kuhn bought a Ford dealership in Tennessee. It's unclear whether he owns any other new-vehicle franchised dealerships.

Greg Clark, Ineos' executive vice president for the Americas, told Automotive News in September that more than 150 dealers applied for an Ineos franchise and that landing one brought a lot of scrutiny.

Dealers must commit to a separate showroom, achieve and maintain high customer satisfaction ratings for service, and take an active role in establishing the brand among off-road enthusiasts.

Large private dealership groups such as Holman, Gee Automotive Cos., Sewell Automotive Cos. and Mills Automotive Group have also been awarded franchises.

With Redwood City offline, Ineos has been conducting complimentary remote deliveries from three locations in Southern California: Irvine, Pasadena and National City, the spokesperson said.

The automaker has delivered more than 1,000 Grenadiers to customers in North America, Clark told Automotive News this month at the NADA Show in Las Vegas.

He predicted the automaker will deliver 800 to 1,000 vehicles in North America each month going forward.

Ineos Group Chairman Jim Ratcliffe said last week that the U.S. is already Ineos' No. 1 sales market, without sharing any sales figures.

In October, Clark told Automotive News that Ineos would probably expand its retail network by a six or seven stores in the U.S. and Canada combined by the end of 2024.

Ineos has 18 other U.S. dealerships, which are all operational, according to the spokesperson. A Connecticut store was added in October after a delay in licensing with that state's Department of Motor Vehicles, Clark said. In December, Ineos announced two dealerships in Canada.

U.S. deliveries of Ineos' second nameplate, the Grenadier Quartermaster pickup, are set to start before year end. Ineos unveiled its newest vehicle, the Fusilier midsize SUV, on Friday. However, output of the Fusilier, available with either battery-electric or range-extender powertrains, won't begin until early to mid-2027.

Automotive News Europe contributed to this report.