INEOS Automotive is pleased to announce that it has entered into discussions with Mercedes-Benz over the acquisition of their Hambach site. The site, which is the home of the smart EQ fortwo models, has been recently developed with a new dedicated SUV line, similar in size to the Grenadier, which makes it ideally suited to the production of the INEOS Grenadier.

INEOS is assessing the option to utilise existing capacity within the industry, as an alternative to building its own plants. “Overcapacity has long been a major issue for the automotive sector,” said Dirk Heilmann, CEO of INEOS Automotive. “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.”

“COVID has had an impact on our build schedules,” added Heilmann, “with ground clearing works and construction held up by the social distancing measures that have been required. Safety is of course paramount, but we also have an obligation to do what is right for the business – and so need to assess these new opportunities in order to maintain or improve on our timelines.”

INEOS expects to complete this review of its options in the next few weeks.

Ends.