BMW secures powertrain supply deal with Ineos

19 March 2019

The BMW Group has secured a major order from Ineos Automotive for delivery of its petrol and diesel powertrains.

The German manufacturer highlights the deal as a further important step in its strategy to expand its business by providing drivetrains to industrial customers. Ineos plans to launch a new SUV model based on a classic off-roader in 2021.

The UK-based company is known more for its dealings in the chemicals, oils and gas markets. However, it recently launched its automotive business and Projekt Grenadier, which it says will offer ′no-frills utilitarianism, complete purity of purpose, unquestionable authenticity and ultimate engineering integrity.’

The vehicle will be a 4×4, which is completely new from the ground up with an all-new architecture inspired by off-road classics such as the Willys Jeep, Series 1 Land Rover and J40 Toyota Land Cruiser. It plans to sell the vehicle globally.

The powerful and efficient BMW TwinPower Turbo engines are destined for Ineos Automotive’s new off-road vehicle project under a contract that foresees the delivery of a five-digit number of engines.

′Our company is famous for efficient, high-performance engines that are among the best in the world’, said Pieter Nota, Member of the BMW AG Board of Management responsible for Sales and Brand BMW and BMW Group Aftersales. ′We offer a broad range of premium, tailor-made drivetrain technologies and services for carmakers and other customers and believe this is a business area with real growth potential.’

Dirk Heilmann, CEO of Ineos Automotive, adds: ′This technology partnership is a very significant milestone for Projekt Grenadier – we are delighted BMW Group will supply engines for our new off-roader. Its reputation as a maker of extremely reliable, high-performance engines that offer total durability, efficiency and quality is second to none. Simply put, it builds the best engines in the world. Working with BMW Group is another major step forward in ensuring we deliver on our vision to build an uncompromising 4×4 with the ultimate in engineering integrity.’

The news is a blow to workers at Ford’s Bridgend plant in Wales, which currently produces engines for Jaguar Land Rover. The British manufacturer is ending its contract with the factory in 2020, and it was rumoured that Ineos was looking to pick up a supply contract with Ford that would see the plant build its engines. The viability of Bridgend, given Ford’s plans to axe around 1,150 jobs in the UK, could now be in question.

However, Ineos may still choose to use space at Bridgend to build the vehicle itself. Speaking to journalists, Heilmann suggested that while production in the UK would not be essential, it would be a nice part of the story. He also said that there are plans for another production facility on mainland Europe.

Ineos plans to build between 25,000-30,000 units of the vehicle annually. The SUV is targeted at drivers of high-spec double-cab pickups and will be priced similarly.