Today we had the pleasure of hosting Lynn Calder, CEO of INEOS Automotive, for an engaging discussion on vehicles, decarbonization, and the future of transportation. As you may have heard, INEOS Automotive has just launched a new vehicle called the Grenadier. Lynn is a fellow energy enthusiast and brings a fascinating background, having previously served at Lime Rock Partners and Talisman before joining INEOS and leading their Shale (CEO), Phenol (Commercial Director), and Composites (CEO) businesses. Lynn was appointed as CEO of INEOS Automotive in December 2022 and has taken on the challenge of building a new automotive company from the ground up. We were delighted to visit with Lynn and greatly appreciated hearing her unique perspectives about the automotive industry and so many of the energy and regulatory issues it touches.
 
One overarching topic that we’ve noticed, and that emerged in our discussion with Lynn, is how interesting large private companies are and their unique approach to decision-making. INEOS is a great example as a global chemical company with 36 diverse businesses including Hydrogen, Aromatics, Energy, Trading & Shipping, Hygienics, and Solvents among others. As you’ll hear in the discussion, Lynn feels she can make decisions quickly and that her team has the freedom to think outside of the box.
 
As we are all car people at heart, we were already fascinated by the challenges of starting a car company but the more we talked to her, the more we thought that what Lynn and INEOS Automotive are doing is a microcosm for what’s going on in the world. She had to work with 45 different governments to get approved for sale, is exposed to all the dialogue around EVs, EV adoption, hybrids, and automotive tariffs, as well as where governments want to take the world vs. where consumers want to go. Lynn also makes interesting comments about being an industrial company in Europe right now, the decisions that are being made in Europe, and how they could affect industry at large.
 
In our discussion we also explore INEOS Automotive’s vehicle lineup and what makes the Grenadier unique, their sales model and market strategy across the US, Europe, Africa and Asia, supplier relationships, plans for future growth, government policies and attitudes, potential shifts in powertrain strategies in the future, and the advantage of INEOS as an energy and chemical producer. Lynn shares her perspective on Europe’s competitiveness in global markets, China’s advancements in EV technology and its impact on trade regulations and EV adoption, the role of entrepreneurship in driving economic growth and much more. It was a fantastic discussion and we are excited to follow up with Lynn as INEOS Automotive continues to grow.
 
Mike Bradley kicked us off by highlighting that over the last week or so, markets seem to be taking on a different tone, one of economic stagnation/slowdown. He noted the 10-year bond yield has recently sunk to ~4.3%, mostly due to a handful of weaker-than-expected economic reports, including today’s JOLTS Job Opening report, which are refueling speculation the FED will cut interest rates this year. Over the last five trading days, WTI price has plunged to ~$73/bbl and broken through “key” technical trading support levels. This week’s plunge in crude price was mostly related to disappointing/confusing news of a potential gradual unwinding of OPEC oil production cuts at a time when global demand growth looks to be slowing. Energy equities are holding up much better in this current downdraft than crude oil. He ended by noting the substantial year-to-date performance gap between EV & ICE auto companies as ICE companies seem to be moving increasingly towards hybrids. Todd Scruggs added to Mike’s comments with data on US and European automotive sales, highlighting the predominance of SUVs and trucks in the US versus a much lower SUV to EV ratio in Europe, indicating a po