New car factory that could come to the North East takes major leap forward

Plans to potentially build a new car factory in the UK have moved closer after billionaire Ineos boss selected a designer for the new ‘spiritual successor’ to the Land Rover Defender.

Multibillionaire chemicals tycoon Jim Ratcliffe announced his intention to create a new car factory, and said a base in the North of England was his preferred choice.

The project has been dubbed Projekt Grenadier and is being run through Mr Ratcliffe’s company Ineos Automotive – and now the company has handed a contracted to design the new 4×4 to Stuttgard-based MBtech a former subsidiary of Mercedes Benz.

While the company is yet to decide where it will manufacture the vehicle, it has been lobbying the UK government for financial support to build it in the UK instead of Germany.



Ineos chairman Jim Ratcliffe
Ineos chairman Jim Ratcliffe

Mr Ratcliffe said his preferred location for the factory would be on the “eastern seaboard”, meaning it could be housed in the North East and bring 10,000 jobs to the region.

Through the design of the car, more than 200 engineers will be working full-time on the project by Spring 2018. They will take the initial design concepts through to a fully engineered vehicle, as well as building the first prototype vehicles.

Dirk Heilmann, CEO of INEOS Automotive, said: “This deal will bring together German engineering and British design and entrepreneurship to create a truly formidable off roader.

“Today’s agreement represents a very exciting step for Projekt Grenadier. We have found a quality partner in MBtech who we believe have the competency, talent, and foresight to enable us to deliver a high-quality vehicle to the market. This deal will bring together German engineering and British entrepreneurship to create a truly formidable off roader.”

Henry Kohlstruck, managing director of MBtech, said: “All of us at MBtech are looking forward to getting involved in this once-in-a-generation opportunity to develop a truly uncompromising off-road vehicle.

“The next six months are where the real work will begin as we take all the design variables into account. Our key competencies lie in developing SUVs and 4x4s, and we are very excited to be given such freedom and responsibility to help complete a fantastic automotive project.”

Once built the new factory is expected to create 10,000 jobs and Ineos Automotive’s ideal of building the car in the UK could prove a major boon for the North East, which already has a massive automotive supply chain built around the Nissan plant in Sunderland.

The existing infrastructure and supply chain means the region is ideally suited to house the new factory.

Mr Ratcliffe has warned that building the factory in the UK would be challenging without the venture receiving a subsidy from the Government.

He said the UK faced higher costs, and there are suitable facilities and trained workforces in other European countries.