Sir Jim Ratcliffe’s attempt to build a car to rival the Land Rover Defender has run up steep losses as it struggles to source parts amid the global supply chain disruption.
Ineos Automotive, a subsidiary of billionaire Ratcliffe’s chemicals conglomerate Ineos, saw pre-tax losses double to €212mln (£186mln) last year, the Guardian reported, citing accounts filed with Companies House.
Losses since the company was set up in 2017 total €506mln. Last year, it received a loan of €944mln from its parent company, on top of €471mln the year before.
The 4x4 vehicle, named Grenadier after Ratcliffe’s favourite London pub, will combine “rugged British spirit with German engineering rigour”, according to Ineos Automotive.
The company has been taking sales orders and deposits since May and plans to start production later this year. The launch had initially been planned for early 2022 but has been postponed because the COVID-19 pandemic and supply chain constraints have impacted the sourcing of parts.
The off-roader costs from £49,000, the Guardian said. The vehicle has an internal combustion engine but Ineos is also looking at hydrogen fuel cell technology.
Ratcliffe, a prominent Brexit supporter, had planned to build the car in Bridgend, south Wales but instead opted for a smart-car factory in Hambach near the Franco-German border.
Earlier this year, the billionaire, who is from Greater Manchester, declared an interest in buying Manchester United from the club’s beleaguered owners, the Glazer family. He had previously wanted to purchase Chelsea from Roman Abramovich.