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Ford plans to invest an extra £125m in the production of electric car parts at its Halewood plant in a move that will make it a key part of the company’s European zero-emissions ambitions.
The Merseyside factory will produce 420,000 electric drive units a year from 2024 under the plan, an increase from the 250,000 initially planned, Ford announced on Thursday.
The US carmaker announced a move at Halewood from making gearboxes for petrol and diesel vehicles to making drive units, which include electric motors and power electronics, in October last year. The additional investment means Ford will spend £380m upgrading Halewood and the van design center in Dunton, Essex, for electric vehicles (EV).
The initial investment decision, backed by around £30m in UK government funding, has provided a major boost for UK industry, amid concerns that high-paying jobs in the industry could move to other countries if companies choose to invest in EV plants elsewhere.
The Halewood site employs around 500 workers. Ford said the new investment would “secure employment”, although it is likely that expanding output would create additional jobs.
Ford closed its Bridgend factory, which made petrol and diesel engines, in 2019, with the loss of 1,700 jobs, while Japanese carmaker Honda said it planned to close its Swindon plant in 2021. However, the Vauxhall owner Stellantis last year announced it would upgrade its Ellesmere Port plant to produce electric vans, prompting long-standing concerns over the fate of another major car plant. across the River Mersey. Ford also manufactures diesel engines for vans in Dagenham, Essex.
Ford said last year that all cars it sells in Europe will be electric by 2030, in line with the UK government’s plan to end sales of pure petrol and diesel cars by 2030, and hybrids thereafter by 2035. Ford also aims to make two-thirds of commercial vehicle sales all-electric or plug-in hybrid by 2030.
The investment will mean the Halewood plant will produce 70% of the 600,000 electric drive units for all Ford electric vehicles sold in Europe by 2026, the company said. The parts will be used in electric versions of the Transit Custom and Tourneo Custom vans, as well as an electric version of its UK bestselling Puma crossover SUV and possibly future vehicles.
Kieran Cahill, vice-president of Ford’s European industrial operations, said: “Our vision in Europe is to build a thriving business, by expanding leadership in commercial vehicles and by electrifying our vehicle range . Halewood plays a critical part as our first in-house investment in EV component manufacturing in Europe.”
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