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Chemical giant Ineos to build heir to the Land Rover Defender Chemical giant Ineos to build heir to Land Rover Defender
(about 9 hours later)
The chemicals group Ineos is to enter the car market, launching an off-road vehicle to replace the Land Rover Defender, which ceased production last year. The chemicals group Ineos has insisted its plan to build an off-road vehicle to succeed the Land Rover Defender is not a vanity project driven by its billionaire founder and chairman Jim Ratcliffe.
Ineos, one of the largest manufacturing companies in the world, says it intends to invest “many hundreds of millions” in developing the new 4x4 off-road vehicle. Ineos will set up a new division, Ineos Automotive, and expects to spend “many hundreds of millions” on developing a 4x4 vehicle that could fill the gap in the market left by the Defender, which has been discontinued by Jaguar Land Rover.
The company says there is a gap in the market following the decision by Jaguar Land Rover to stop producing its famous Defender. The company is focused on manufacturing and distributing chemicals, oil and gas, but Ratcliffe is a self-confessed admirer of the Defender.
“We want to build the world’s purest 4x4 and are aiming it at explorers, farmers and off-road enthusiasts across the globe,” said Jim Ratcliffe, chairman of Ineos. Ineos wants to sell the vehicle for less than £50,000 and will aim it at farmers, foresters, explorers and enthusiasts. The company is looking to manufacture the off-roader in the UK – although it is also considering options in Europe – with the first cars potentially available from 2020. Ineos Automotive could employ up to 1,000 people if the venture is successful.
Ineos is looking at sites across Europe to manufacture the new vehicle but hopes to find a suitable location in the UK. Tom Crotty, a director at Ineos, said the company had conducted a six-month feasibility study into the project – which considered two major issues – before committing to building the vehicle.
The company said its off-road vehicle would not be a replica of the Defender butwould “reflect its philosophy” and “provide a step change improvement in build quality and reliability”. “One was if its possible to manufacture a traditional off-roader that meets global regulations, and we believe that answer to that is yes,” he said. “Then it was how feasible would it be to manufacture this vehicle from scratch at a cost that we could sell it to the target market.
“This is an amazing project for everyone involved,” said Dirk Heilmann, chief executive of the newly formed Ineos Automotive. “Our job is to create the world’s best 4x4 and we are already moving forward with our plans.” “We are clearly one of the biggest UK manufacturers. We believe the practices of good manufacturing apply whatever you are making, but we are not so arrogant that we think we have nothing to learn, so we are out hiring people from the industry.
Heilman, formerly head of engineering and technology at Ineos, is recruiting a team of automotive experts for the project. “We are committed to qualify for UK manufacturing. Jim has a real passion and belief that we [the UK] have lost a lot of the manufacturing bases. That is not a good thing long-term for any country.
The decision to develop a new off-road vehicle was taken following a six-month feasibility study started by Ratcliffe, who is a big fan of the original Land Rover Defender. “He is very committed to that and sees this as another way to achieve that. It is not a vanity project. There must be a lot of people like this [who like the Defender] who can’t buy the car anymore, so we think there is a market.”
Ratcliffe said he saw a gap in the market for an “uncompromising off-roader that stood for adventure and active driving but also had the capability to be a work and utility machine”. However, industry analysts warned that Ineos faced stiff competition in the 4x4 market from Toyota, but also Jaguar Land Rover, which is repurposing old Defenders and intends to launch a new model in 2019.
Ineos intends to sell the vehicle globally with a target market identified as including agriculture and forestry workers, explorers and adventurers as well as traditional Defender fans that “simply enjoy an authentic 4x4 driving experience”. David Bailey, professor of industry at Aston University, said: “There may be a small niche market for certain uses and for fans of extreme off-road driving, but there is already quite a lot of competition.
“I am a great admirer of the old Land Rover Defender and have enormous respect for its off-road capability,” said Ratcliffe. “Our new 4x4 has been inspired by it. But while our off-roader might share its spirit, our new car will be a major improvement on previous models.” “It is not clear to me if the business case stacks up. I am sceptical as to whether it is viable, but having said that there are a lot of niche sports car companies in the UK at the moment.
Last January, the last Land Rover Defender rolled off the production line at Jaguar Land Rover’s Solihull plant in the West Midlands. “Making cars is more difficult than people realise. You need to design the car, build the supply chain, build your brand, and then make the car itself and develop an assembly line.”
Ratcliffe was quoted in Ineos’s announcement about the project saying that he was a “great admirer of the old Land Rover Defender” and has “enormous respect for its off road capability”.
“Our new 4 x4 has been inspired by it. But while our off-roader might share its spirit, our new car will be a major improvement on previous models,” he said.
In January 2016, the last Land Rover Defender rolled off the production line at Jaguar Land Rover’s Solihull plant in the West Midlands.
The Defender, which first appeared in the aftermath of the second world war, was originally conceived as a no-frills, off-road vehicle marketed as a “go anywhere” option. The Defender name was introduced in 1990.The Defender, which first appeared in the aftermath of the second world war, was originally conceived as a no-frills, off-road vehicle marketed as a “go anywhere” option. The Defender name was introduced in 1990.
More than 2m were built and its rugged design has ensured that an estimated two-thirds of Defenders and their predecessors are still on the road.More than 2m were built and its rugged design has ensured that an estimated two-thirds of Defenders and their predecessors are still on the road.
After ceasing production of new Defenders, Jaguar Land Rover launched a heritage vehicle restoration line, repurposing old Defenders, at its Solihull plant.After ceasing production of new Defenders, Jaguar Land Rover launched a heritage vehicle restoration line, repurposing old Defenders, at its Solihull plant.