Ineos taps Magna to build its EV

Ineos Group, the British resin and chemical company that recently entered the automotive market with its BMW-powered Grenadier SUV, is turning to Magna International Inc. to produce its upcoming off-road electric vehicle, the companies said April 17.

The Canadian parts supplier is expected to begin production of the Ineos EV at its Magna Steyr complete vehicle assembly plant in Graz, Austria, in 2026. The companies did not disclose how many vehicles Magna plans to engineer and assemble for Ineos, nor did they reveal further details about the EV model.

"Right now, we're working to get the design concepts ready and are working to get the supply base on board to support this program," said Roland Prettner, interim president of Magna's complete vehicle business unit, in an interview with Automotive News.

The addition of Ineos as a customer at Steyr adds to Magna's growing portfolio of EV models it produces there. Magna is pitching itself to automotive newcomers such as Ineos and Fisker as a one-stop shop for engineering and assembly capabilities as those companies look to get their vehicles onto the market faster.

The deal with Magna provides clarity on timing for the launch of Ineos Automotive's full EV. And while a news release gave no further details on the model, Ineos has said it will be built on an "all-new, smaller platform" than the Grenadier SUV, which the company began deliveries of in late 2022.

Ineos worked with Magna ahead of the launch of the Grenadier. The supplier provided complete vehicle engineering services for Ineos starting in 2018, according to the news release.

"Deepening our collaboration is a natural next step as we use the Grenadier as a springboard for our continued growth as a global automotive brand with our second model line," Ineos Automotive CEO Lynn Calder said in a statement.

For Magna, the new deal with Ineos comes as the supplier looks to position its complete vehicle business for success in the EV era. But as it makes that transition, Magna expects sales revenue from the unit to shrink.

In its most recent outlook, released in February before the Ineos news was announced, Magna said it expected its complete vehicle business to generate sales of between $4 billion and $4.5 billion in 2025, down from an estimate of between $4.9 billion and $5.2 billion for 2023.

Smaller volumes are to be expected as the company turns over old programs and begins new ones, Prettner previously told Automotive News. The company also continues to eye locations for a potential contract assembly plant in the U.S.

Magna ranks No. 4 on the Automotive News list of the top 100 global suppliers, with worldwide sales to automakers of $36.2 billion in 2021. It is also a global maker of plastic molded parts, including exerior panels, fascia, lighting and mirrors.