Billionaire Jim Ratcliffe’s Ineos Puts Electric SUV Plan on Hold

Jamie Nimmo, Bloomberg News

Jim Ratcliffe with a model of the Ineos Fusilier. Photographer: Hollie Adams/Bloomberg , Photographer: Hollie Adams/Bloomberg

(Bloomberg) -- Jim Ratcliffe’s Ineos Group is delaying its electric sport utility vehicle, blaming waning consumer demand for EVs and uncertainty around tariffs.

Production of the Fusilier, a smaller vehicle than the Grenadier 4x4 that the company started selling last year, had been expected to begin in 2027. Ineos on Wednesday didn’t specify a new timeline.

Ratcliffe, the billionaire petrochemical mogul who is now also a minority investor in Premier League club Manchester United, had outlined plans earlier this year to offer both a battery-only version of the Fusilier, and a range-extender option using a small gas engine to keep the battery charged.

However, because it requires a gas engine, a range-extender would be banned in both Europe and the UK in 2035, or in 2030 in the UK if the Labour Party wins Thursday’s general election, an Ineos Automotive spokesperson said.

“We are delaying the launch of the Ineos Fusilier for two reasons: reluctant consumer uptake of EVs, and industry uncertainty around tariffs, timings and taxation,” the company said. “There needs to be long-term clarity from policymakers” to meet net zero targets.

The decision comes after Ratcliffe in February said Ineos was “fully in” when it came to low-emission vehicles, according to an interview with Bloomberg Television.

Ratcliffe — the UK’s second-richest person with a $15.4 billion fortune, according to the Bloomberg Billionaires Index — has been diversifying away from chemicals. His Ineos business has been grappling with weakening demand for its products and rising borrowing costs.

Ineos planned to develop the Fusilier along with auto supplier Magna International Inc. A spokesperson for Magna confirmed Ineos’ decision to Austrian newspaper Kronen Zeitung, which reported the news earlier.

Production of the gas-powered Grenadier in Hambach, Germany, will continue as planned, the spokesperson confirmed, adding that there would be no job losses as a result of the decision. The Grenadier was born out of Ratcliffe’s desire to fill the void left by Jaguar Land Rover Automotive Plc retiring the original Defender.

(Updates with additional detail throughout)