 | Home > INEOS Grenadier > How much does it cost to build a Grenadier? |
 
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| Supacat Member Since: 16 Oct 2012 Location: West Yorkshire Posts: 11018   
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This year's update:
"Ineos reveals third loss-making year in effort to make Land Rover rival James Ratcliffe’s car company may have spent well over £650m on offroader project Sir Jim Ratcliffe’s car company has made losses of more than £250m over three years as the billionaire businessman ploughs money into his effort to make a Land Rover rival that could also lead to new vans and construction vehicles. Ineos Automotive, a subsidiary of Ratcliffe’s chemicals conglomerate, reported a loss of €106m (£91m) in 2020 in its latest accounts, adding to €188m lost in the previous two years. Ratcliffe’s other companies have also lent €471m (£403m) to the automotive subsidiary, meaning his total commitment so far may be well in excess of £650m." https://www.theguardian.com/business/2021/...over-rival |
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6th Nov 2021 7:13am |
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| Orchard Member Since: 07 May 2015 Location: Usually walking the dog Posts: 258 |
£650m on a ground up car program seems expensive, particularly when the engine and gearbox is bought in (apart from tuning), and there's no factory to build. 2015 90 XS SW Bowler
1998 TD5 CSW |
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7th Jan 2022 9:42am |
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| DSC-off Member Since: 16 Oct 2014 Location: North East Posts: 1403 
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According to John Wolkonowicz, Senior Auto Analyst for North America at IHS Global, "It can be as much as $6 billion if it's an all-new car on all-new platform with an all-new engine and an all-new transmission and nothing carrying over from the old model."
https://www.autoblog.com/2010/07/27/why-do...ew-models/ |
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7th Jan 2022 10:18pm |
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| Supacat Member Since: 16 Oct 2012 Location: West Yorkshire Posts: 11018
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I don't think the £650m figure was actual expenditure at the time. The majority of that figure seemed to be loans/loans facilities.
Bearing in mind the purchase of the the French plant comes after these accounts reported. If my maths are right it's €294m actually spent, but it's on a rising curve so who knows how much more between then and now? As to what's expensive, I think a guy who's dropped $230m on two boats, probably has a different concept of value for money? |
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8th Jan 2022 6:16am |
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| Bluest Member Since: 23 Apr 2016 Location: Lancashire Posts: 4209 
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Years ago, when the Mondeo was at the peak of its powers I read that Ford spent $1 billion developing a new model, more than Airbus spent on the A380 or something. Grenadier seems a bargain in comparison. 2007 110 TDCi Station Wagon XS
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8th Jan 2022 9:40am |
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| DSC-off Member Since: 16 Oct 2014 Location: North East Posts: 1403
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The first gen Mondeo was developed 30 years ago
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8th Jan 2022 11:46am |
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| m0ondogy Member Since: 04 Oct 2021 Location: East Coast Posts: 8 
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It is an eye watering number for sure. Cool seeing it broken down that way.
Semi-related. I recall the late 90s S class was making headlines for being the first care/platform to cross the billion dollar development cost. If that's true and Mercedes is as good as they claim, I'm guessing the Grenadier is somehow cheap to make in automotive terms. |
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8th Jan 2022 8:55pm |
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| 90 Dreamer Member Since: 13 Jul 2019 Location: Oop North Posts: 2152 
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Bearing in mind he's a savvy business type then of course it wouldn't possibly be a nice tax loss for his other business(s).....
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8th Jan 2022 9:03pm |
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| ADVAW8S Member Since: 05 Oct 2021 Location: PNW Posts: 28
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[quote="Supacat"]I don't think the £650m figure was actual expenditure at the time. The majority of that figure seemed to be loans/loans facilities.
Bearing in mind the purchase of the the French plant comes after these accounts reported. If my maths are right it's €294m actually spent, but it's on a rising curve so who knows how much more between then and now? As to what's expensive, I think a guy who's dropped $230m on two boats, probably has a different concept of value for money?[/quote I agree with you Supacat. The majority of money spent has been in some form of loans versus out-of-pocket. The loans are probably backed by the assets of INEOS. I believe he has kept the cost down by reducing development costs. The INEOS team has done a great job outsourcing. The engine is BMW, axles from Carraro, Suspension from Magna, transmission from ZF. Think of the number of employees that would have had to be higher just to design and manufacture these pieces. Humans are the largest source of cost for any company. The Grenadier is not vaporware like some of these other new start-up manufactures. The main reason being backed by the largest chemical company which is privately owned and they are building a product that is not to far outside the box and simple to build. |
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9th Jan 2022 2:09pm |
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| Danny Fireblade Member Since: 16 Mar 2018 Location: Hampshire Posts: 319 
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I wonder what the profit margin is on each vehicle sold? Bearing in mind if we average out each vehicle as £50k, it only takes them to sell 20 to make a million, which would leave a certain amount of profit.
The numbers soon add up then, especially as it’s a pretty basic vehicle to make compared to some of them out there so I’m sure he could keep overheads a little bit lower. Once the testing and development is done, that’s it for about 5 years, excluding a LCI at about 2.5 years. I don’t think he will be losing money on each one. After all, he does know how to run a business or two😁 |
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9th Jan 2022 4:08pm |
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