INEOS Automotive launches, aims to produce 25,000 units/year by 2021

INEOS’ CEO Jim Ratcliffe inspects a Land Rover Defender in central London on Tuesday. Source: Jonathan Lopez/ICIS

LONDON (ICIS)–INEOS aims to produce 25,000 units/year of a new version of the extinct Land Rover Defender by 2021, the European chemical major said on Tuesday.

The project, announced in 2016 without detailing financial details, will receive €600m in capital expenditure (capex) from INEOS, although the location for production has not been decided yet.

According to company executives on Tuesday, INEOS is in conversation with the UK government to potentially set up production in the northern east coast, although that would be dependent on receiving some “support” in subsidies, according to Jim Ratcliffe, CEO at INEOS.

Ratcliffe, a UK national who is passionate about bringing back manufacturing activity to the country, said however that a number of countries in Europe have approached the company offering former automotive sites and, therefore, the location was still undecided.

The company said by December it would have 200 engineers working on the car’s design, and within 12 months it would decide on a production plant location.

Once built, the production plant could create up to 1,000 jobs, helping to create between 5,000 and 10,000 indirect positions, according to INEOS’ calculations.

While the former Land Rover Defender, for which production stopped in January 2016, sold around 15,000 units/year, INEOS is aiming for 25,000 because it will also commercialise the vehicle in the US, a market Land Rover Defender had exited decades ago.

The company said the 4×4 off-roader it aims to build – a project which it defined as Ratcliffe’s “brainchild” – would not be a replica of the former Defender but would reflect its philosophy.

“The target market is global and includes agriculture and forestry workers, explorers and adventurers as well as traditional Defender fans that simply enjoy an authentic 4×4 driving experience,” said the company.

“INEOS is determined that its new vehicle will offer a real and pure alternative to the current crop of standardised ‘jelly-mould’ SUVs [sport utility vehicle].”

INEOS, which is privately-owned, posted €50bn in sales in 2016, according to the CEO, and €4.5bn in earnings before interest, taxes, depreciation and amortisation (EBITDA). It is headquartered in Switzerland – for its chemicals operations – and in the UK, for its upstream businesses.

INEOS Automotive will also be headquartered in London.

Ratcliffe’s own defender, on the left in red. Source: Jonathan Lopez/ICIS

ICIS will be publishing an interview with Jim Ratcliffe on 20 September