Ford UK is significantly improving its electrified mobility and its push for international expansion as UK export finance (UKEF) intervenes with a £1 billion export development guarantee (EDG).
The investment will support 80% from the UK government and provide important funding for automakers to continue transformation into EV production and advanced automotive technology leaders.
The new loan, arranged by City alongside the lender’s syndicate, marks the third such facility since 2020 that has been expanded to Ford UK by UKEF.
The total government support funding for Ford UK is currently approaching £2.4 billion, with UKEF guaranteeing £1.9 billion on three separate investments.
Jonathan Reynolds, Secretary of Business and Commerce, commented: “We are proud of the historic automotive sector and the commitment that global companies like Ford have made to build cars and create jobs in the UK.
“We are delighted that Ukef is supporting Ford to support the company’s growth ambitions.”
Large investment in UK-based EV manufacturing and R&D
Ford’s operations in the UK are crucial to our global electrification strategy. The company employs more than 5,500 people on a variety of sites, including its state-of-the-art R&D centres in Dunton, Essex, the UK’s largest automotive research hub.
Recent capital injections have significantly improved Ford’s EV functionality. The £380 million investment has transformed the Halewood plant in Merseyside into a state-of-the-art facility for electric motor production, moving from traditional transmission manufacturing. The factory will power flagship models like the All-Electric Ford Transit and Puma.
Additionally, Ford has led £70 million to strengthen Essex’s R&D and testing facilities, making sure it remains at the forefront of engineering smart, connected and electric vehicles.
Ford Britain’s chairman, Lisabra Rankin, emphasized the importance of this support. “Recent investments in the UK have proven important for European operations, expanding the UK’s export capacity, in addition to supporting Ford’s investment in all European electrical products lines.
“This new UKEF facility will play a key role in supporting the UK’s export footprint, particularly amid the continued uncertainty of the trade environment and the cutting of electric vehicle targets and customer demand.”
Strategic British Government Support for Automotive Innovation
Government’s support for Ford UK is part of a broad commitment to revitalizing the automotive industry while moving towards a zero-emissions future.
Initiatives such as electric vehicle grants, advanced manufacturing sector planning and modern industrial strategy collectively allocated more than £2.5 billion to support sustainable vehicle development through 2035.
This coordinated approach aims to strengthen the UK’s role as a leader in clean technology and future mobility, and aims to create jobs, attract investment and stimulate economic growth across the country.
Boost exports through strategic trade transactions
Ford UK can also benefit from improved access to global markets as it accelerates its EV production capacity.
Thanks to a groundbreaking trade agreement with the US, British automakers are currently cutting dramatic reductions in export tariffs from 27.5% to 10%.
The UK-specific contract is expected to save hundreds of millions of manufacturers a year and solidify employment safety within the industry.
Ford and Ukef’s continued partnership
The latest £1 billion funding transaction is built on previous UKEF guarantees.
June 2022: 750 million EDG, including a £600 million UKEF guarantee, supported the scale-up of Ford’s power unit production. June 2020: £500 million guaranteed, EDG of £625 million helped establish Global Vehicle R&D headquarters in Essex and supported EV Tech Development.
This long-term collaboration highlights the government’s trust in Ford UK as a foundation for the future of the country’s EVs in the automotive sector, export growth and technical leadership.
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