Ineos Automotive has officially confirmed it has sealed a deal with Mercedes-Benz to buy the latter's Smart factory in Hambach, France where the upcoming Grenadier 4x4 will call home. The German automaker put the factory up for sale last summer as part of a major cost-cutting plan following the coronavirus outbreak. The facility has been the home of the Smart ForTwo since 1998.
As part of the new deal, Ineos will continue manufacturing the Smart fortwo EV and other related components for Mercedes parent company Daimler alongside the combustion-engined Grenadier for an undisclosed period of time. The Ineos Grenadier's rugged and classic design is heavily inspired by the original Land Rover Defender.
Set to go on sale in early 2022, the Grenadier will be powered by a choice of two BMW-sourced engines: a 3.0-liter turbocharged gasoline V6 or diesel V6. Official pricing has not been announced but the Grenadier intends to appeal to those who prefer the old school SUV styling instead of the retro looks of the all-new Defender. Jaguar Land Rover unsuccessfully sued Ineos in a UK court last summer over the Grenadier's design, claiming it too strongly resembled the classic Defender.
Founded by UK billionaire and Brexit proponent Sir Jim Ratcliffe, the original plan was for Ineos to set up shop in Wales. The new economic situation created by the pandemic changed those plans and Ineos began looking for an alternative.
"Hambach presented us with a unique opportunity that we simply could not ignore: to buy a modern automotive manufacturing facility with a world-class workforce," Ratcliffe said. "Ineos Automotive set out a vision to build the world's best utilitarian 4x4, and at our new home in Hambach, we will do just that."
The combined Grenadier and Smart production plans translate into around 1,300 jobs and nearby suppliers will also greatly benefit. Eventually, Smart production will be completely transferred to China. Last year, Mercedes sold 50 percent of the small car brand to Chinese automaker Geely who plans to build future Smart EVs locally.