INEOS Grenadier may be made in Smart factory

INEOS Automotive has confirmed it is in negotiations with Daimler to take over its Smart factory in order to create a French manufacturing hub for its new Grenadier 4x4.

Originally, the billionaire-backed operation announced it would create its ladder-frame based off-road SUV and ute at a facility in Portugal before shipping the parts to Wales for final assembly, but INEOS has confirmed work at both sites has now been suspended.

Those plans could be abandoned, as it appears the entire manufacturing process could now be carried out at the Smart factory based in Hambach in eastern France.

The sudden attraction of the Smart factory is reportedly linked to a recent investment by Daimler to retool the plant to produce a larger SUV model.

It's thought the new SUV line at Hambach would allow the Grenadier to be built on the same line using the same processes, hence the interest on the part of INEOS, which could save millions by not having to build and equip two production facilities.

Sealing the deal is a highly-skilled workforce that will be ready and willing to work once Daimler ends Smart production.

Releasing a statement confirming the negotiations with Daimler, INEOS Automotive CEO, Dirk Heilmann, said: “Of course we considered this route previously, but as a result of the Covid-19 pandemic some new options such as this one with the plant in Hambach have opened up that were simply not available to us previously.

"We are therefore having another look – and reviewing whether the addition of two new manufacturing facilities is the right thing to do in the current environment.”

Last year INEOS announced it would build its final assembly plant at a site in Bridgend in Wales, in a move that promised the creation of up to 500 jobs.

That was welcomed in an area where Ford is about to close its engine plant, but those plans could be abandoned and the car-maker may exit the UK altogether.