INEOS Shifts Grenadier 4x4 Production to US Amidst Growing Demand
INEOS Automotive is shifting production of its popular Grenadier 4x4 vehicle from France to the United States to cater to growing local demand. The company aims to start US production promptly, despite challenges posed by high European manufacturing costs and US tariffs on European cars.
The move comes as Grenadier sales surged by 40% in 2024 compared to the previous year, with revenue increasing by 57% to €789mn. Most Grenadiers are sold in the US, making local production a strategic decision. INEOS Automotive is currently exploring potential US sites, considering both building a new factory and utilising existing manufacturers' excess capacity.
The company is also grappling with the EU's proposed 2035 petrol engine ban, which has put a pause on major investment decisions. Meanwhile, INEOS Automotive recalled over 7,000 Grenadiers in March 2024 due to a door issue, demonstrating the company's commitment to safety and quality.
INEOS Automotive's parent company, INEOS Industries Holdings, injected nearly €600mn into INEOS Automotive in 2024 to support these strategic shifts. Despite a €290mn loss in 2024, down from €323mn in 2023, the company remains optimistic about the Grenadier's prospects in the US market.
