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UKEF backs Ford through its electric vehicle production line expansion, working towards its 2035 net zero plan.
Ford has doubled down on its commitment to the UK as its European hub for electric vehicle powertrain production, thanks to £600 million of backing from UK Export Finance, supporting high-skill manufacturing jobs.
The investment is part of the government’s plans to put the UK at the forefront of electric car development in Europe as the country transitions to net zero.
Ford has received support from UK Export Finance (UKEF) through its Export Development Guarantee (EDG) scheme, which will turbo-charge Ford’s transition towards electrification, expand its manufacturing and export capacity and support continued investment in the UK.
Citibank Europe PLC was the sole coordinator and agent on the loan to Ford. There were six participant lenders who all have an equal share in the facility.
International Trade Secretary Kemi Badenoch said, “Our support for Ford is great news for jobs in Essex and Merseyside and British manufacturing as a whole.
“Boosting electric car production is key to our strategy to combat climate change and today’s news demonstrates how our manufacturing industry, our exports and our economy will benefit from this transition.”
This announcement builds on previous government support for Ford’s EV expansion:
- July 2020: a £625 million UKEF EDG facility (UKEF guarantee on £500 million). This helped to finance Ford’s global vehicle research and development headquarters in Dunton in Essex, securing thousands of jobs and supporting the development of electric vehicle technologies.
- October 2021: a £230 million investment supported by BEIS’ Automotive Transformation Fund (ATF), which aims to electrify Britain’s automotive supply chain and protect our nation’s competitiveness in the global market. This investment funded phase one of the powertrain production lines in Merseyside.
- This further £750 million UKEF EDG (UKEF guarantee of £600 million) announced today is phase two of Ford’s EV plans. The investment will significantly expand the powertrain production line capacity. It brings the total UKEF-supported financings for Ford to almost £1.4 billion.
Ford is one of the UK’s largest exporters. Engines and transmissions are transported from its facilities in Dagenham and Halewood to twelve countries on five continents.
The UKEF-backed loan will initially support a £125 million investment to fund phase two of its electric vehicle powertrain manufacturing hub in Halewood, Merseyside.
The Halewood plant’s electric powertrain volume is due to increase from 250,000 units to 420,000 units per annum as a result of the UKEF support.
Ford estimates the investment will help secure 500 jobs at Halewood.
A key feature of the UKEF EDG product is that it provides liquidity for Ford to use across their business as required.
Tim Slatter, chairman of Ford UK, said, “This is an all-important next step for Ford towards having nine EVs on sale within four years.”