Ineos is Looking to set up a Factory in the United States

• The British company currently manufactures the Grenadier SUV and Quartermaster Pickup in France.

• This exposes the Quartermaster to a 25% “Chicken Tax” in the United States.

• Ineos is aiming to sell 250,000 vehicles annually by the early 2030s, most of them in the U.S.

After having quickly established itself in over 50 markets around the world, Ineos Automotive, maker of the Grenadier SUV and Quartermaster pickup, is looking to expand further, which could require a factory in the United States.

Indeed, the automaker’s largest market is the U.S., where about 60% of its production has been delivered.

Since the company wants to produce and sell between 200,000 and 250,000 vehicles per year by the early 2030s, it makes sense for it to concentrate on its biggest market.

To do so, Ineos Automotive is looking at setting up an assembly plant in the country, which could reduce its production costs and, most crucially, avoid the “Chicken Tax”.

This 25% tariff has been levied on imported pickup trucks since 1964 in order to reduce competition for the American automotive industry.

Owing to its French final assembly, the Ineos Quartermaster is currently the only vehicle on sale that is subject to the Chicken tax, which explains why it is priced U.S. $13,400 higher than the closely related Grenadier SUV, which is exempt as it is considered a “passenger vehicle” rather than a “light truck”.

Making the Quartermaster in the United States could therefore allow Ineos to price it closer to the Grenadier’s $71,000 base price, which should attract more sales.

As a comparison, the two trucks are priced exactly the same in Canada, with a starting price of CAD $96,695, which equates to US $70,260 at current exchange rates.

In addition to its two current models, Ineos is likely to manufacture the upcoming Fusillier in the U.S. as well, if it does end up opening a factory there in the coming months or years.

This upcoming product is a smaller SUV that was supposed to be fully electric, but this might have changed since the model was first announced.

Indeed, the company paused development of its first EV in mid 2024 as a result of falling electric vehicle sales worldwide, but especially in the U.S.

Since then, the automaker said it is actively working on a model to sit below the Grenadier in its lineup, which suggests work has picked back up on the Fusillier.

Given that EV sales haven’t really recovered between those two announcements, it is possible that the Fusillier will end up being powered by a combustion-based powertrain, perhaps with some form of electrification.

It isn’t known yet if this model will continue the brand’s partnership with BMW, which supplies inline-six-cylinder engines for the Grenadier and Quartermaster.

Source: Carscoops