Jim Ratcliffe’s attempt to rival Land Rover Defender racks up steep losses
Sir Jim Ratcliffe’s drive to make a rival to the Land Rover Defender has racked up steep losses amid difficulty sourcing parts because of global supply chain disruption.
Pre-tax losses at Ineos Automotive, a subsidiary of the billionaire’s chemicals conglomerate, doubled to €212m (£186m) last year, accounts filed with Companies House show. It has run up total losses of €506m since its inception in 2017, and received a further loan from its parent of €944m last year, on top of €471m in 2020. It plans to repay the loan from future revenues from the off-road vehicle.
Ratcliffe, one of Britain’s richest people, has plans to build a 4x4 vehicle – called the Grenadier after his favourite London pub – which the firm says will combine “rugged British spirit with German engineering rigour”. It launched a full digital brochure in April, and has been taking sales orders and deposits since mid-May, with plans to start production later this year.
However, the launch date – initially planned for early 2022 – has slipped repeatedly amid trouble sourcing some parts because of the Covid-19 pandemic and disruption to global trade.
“The company’s directors and senior management team have stayed informed of the supply conditions to understand the key concerns and [are] reviewing options to overcome potential delays,” it said in the accounts.
Higher prices for raw materials and electronic component in particular threaten to push up the company’s costs, and it flagged that it did not actively hedge against the risk of rising prices of electronic components of raw materials.
Ratcliffe, among the most prominent business backers of Brexit, had planned to build the car in Bridgend, south Wales but dashed hopes of an automotive revival there by opting
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