A billionaire’s rugged SUV startup eyes U.S. growth

An automotive startup founded by a chivalric billionaire, a British chemical mogul and a minority owner of one of the world’s most prominent football clubs is looking to revive the struggling SUV market.

Ineos Automotive has produced more than 35,000 off-road SUVs and pickups since the start of 2022, executives told CNBC exclusively. It has ambitious growth plans, including the potential to expand vehicle production to the U.S. and a goal of reaching breakeven this year, executives told CNBC exclusively.

“We’re running this for success. We’re running this for profitability.” Lynn Calder, CEO of Ineos he told CNBC in an interview. “We’re doing this really efficiently, and I think that’s going to allow us to actually get to break-even without a lot of selling.”

Ineos will announce a record number of orders in the first quarter for its flagship gas- and diesel-powered Grenadier 4×4 vehicles on Monday, making for a “great start” to the year, Calder said.

The company’s plans this year include increasing sales in the U.S., its largest market, by roughly 30% to 35% year over year, and then further increasing awareness and sales worldwide. supply chain disruptions, tariffs and other issues affected his business last year.

This is easier said than done, as competitiveness increases in the capital-intensive global automotive industry. Most automotive startups, especially all-electric vehicle companies, have gone bankrupt after burning billions of dollars in capital.

“We’re quietly moving forward, building a company, doing things right, learning as a new startup… we’re getting to the stage where we’re ready to grow. And that’s where we’re at right now,” Ineos Automotive Chief Commercial Officer Mike Whittington said during a separate interview.

The automaker, a subsidiary of Ineos Group, a multinational conglomerate and one of the world’s largest chemical manufacturers, currently sells vehicles in 50 global markets in North America, Europe, Africa, the Middle East, Southeast Asia, China and Australia.

But Whittington said its biggest focus right now is the U.S., which accounts for about 60% of its sales.

Calder told CNBC that the American market is vital for the company to reach sales of 200,000 to 250,000 units by the early 2030s at the latest. This would include production at its existing facility, a former Mercedes-Benz facility in France, as well as potentially adding a factory in the United States, he said.

“Our models have great appeal in the US market, we should be successful there too and this would make the most sense for us,” he said. “So we’re definitely looking at options to manufacture in the U.S.”

That could mean limited assembly in the U.S. in coming years to help avoid tariffs, including the 25% “chicken tax” on light trucks imported to America, enacted in 1964 in response to a European tax on poultry to help protect domestic production, he said.

Ineos declined to disclose its current financial statements, but Calder confirmed the company has spent around $2 billion since its founding in 2017. This is a relatively low amount, especially compared to other automotive startups such as electric vehicle manufacturers, considering the company’s factory, manufacturing and retail network. Rivian Automotive And Lucid Group.

According to the statement of the chemical mogul whose net worth is over 18 billion dollars ForbesHe said he felt there was a need for such a vehicle after the cancellation of the extremely robust Land Rover Defender, and decided to pursue the vehicle while at the Grenadier bar.

“We set out with the vision of building the world’s best utilitarian 4×4, and that’s exactly what we’ve done,” said Ratcliffe, who describes himself as an adventurer and car enthusiast.

Ratcliffe is the chairman and majority owner of chemicals giant Ineos Group, as well as a minority owner of English football club Manchester United. Three things were indisputable behind the Grenadier: functional design, serious durability and outstanding off-road capability. It features a design that combines elements of Mercedes-Benz’s flagship G-Class or “G-Wagon” SUV and the military Humvee or Hummer.

The Grenadier is available in SUV, pickup truck and commercial models powered by the gas-powered BMW 3.0-liter inline six-cylinder engine for the United States. Other parts are supplied with engineering development support from suppliers such as Bosch, Brembo and Recaro. Magna.

The price of the pickup truck model called Quartermaster starts from $ 84,400. The special limited-edition model of the Grenadier SUV, called the Detour, could cost around $157,000.

The company’s next vehicle is expected to be smaller The model called Fusilier It was expected to be an all-electric vehicle before Ineos paused development in 2024 to also consider hybrid options for the vehicle.

Calder said the company aims to partner with other companies for future models rather than building from scratch as it did with the Grenadier. Fusilier is expected in the next two to three years, he said, and a much faster product pace will follow from there.

“We’re just a renegade British brand with a rebellious car that gives people the chance for a very fun, adventurous life,” Calder said. “I am extremely optimistic that 2026 will be the next major milestone year in our growth.”