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- The government-backed loan will facilitate Ford’s investment in Essex and Merseyside, supporting thousands of local jobs.
- The loan will help Ford expand its electric vehicle range from the current two to nine models.
- The investment is part of government plans to keep the UK at the forefront of electric car development in Europe.
Ford has redoubled its commitment to the UK as its European hub for electric vehicle powertrain production, thanks to £600 million of support from UK Export Finance, which supports high-skill manufacturing jobs.
The investment is part of the government’s plan to keep the UK at the forefront of electric car development in Europe as the country transitions to net zero.
Ford has received support from UKEF through its Export Development Guarantee (EDG) scheme, which will turbo-charge Ford’s transition to electrification, expand its manufacturing and export capacity and support continued investment in the UK.
Citibank Europe PLC was the sole arranger and agent on the loan to Ford. There were six participating lenders who all held equal stakes in the facility.
International Trade Secretary Cammy Badenoch said:
Our support for Ford is good news for jobs in Essex and Merseyside and across British manufacturing. Ford is a major employer in the UK and high-skilled jobs help those communities to thrive.
We have consistently supported Ford as it makes its critical transition to electrification. Increasing production of electric cars is key to our strategy to tackle climate change and today’s news shows how this transition will benefit our manufacturing industry, our exports and our economy.
The announcement builds on previous government support for Ford’s EV expansion:
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July 2020: £625m UKEF EDG facility (UKEF guarantee on £500m). This helped finance Ford’s global vehicle research and development headquarters in Dunton, Essex, securing thousands of jobs and supporting the development of electric vehicle technologies.
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October 2021: A £230m investment supported by BEIS’ Automotive Transformation Fund (ATF), which aims to electrify Britain’s automotive supply chain and secure our nation’s competitiveness in the global market. The investment funded a phase of a powertrain production line in Merseyside.
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This further £750m UKEF EDG (UKEF guarantee of £600m) announced today is the second phase of Ford’s EV plan. The investment will significantly increase powertrain production line capacity. It brings total UKEF-backed financing for Ford to around £1.4 billion. (£1.1bn guaranteed by UKEF)
Business Secretary Grant Shaps said:
The booming international market for electric vehicles continues to drive growth and create jobs across the UK. The auto industry is one of the shining lights of our economy, and we are determined to help them seize the opportunity as the world shifts to guilt-free driving.
I am delighted that we have helped Ford unlock this important investment, which is another vote of confidence in the UK as one of the world’s best places for automotive manufacturing.
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.
Schemes in Halewood, Merseyside
The UKEF-backed loan will initially support a £125 million investment to fund the second phase of its electric vehicle powertrain manufacturing hub in Halewood, Merseyside, making the north-west a center of excellence for electric vehicle manufacturing in Europe.
The Halwood plant’s electric powertrain volume is set to increase from 250,000 units to 420,000 units annually as a result of UKEF support. That is an increase of about 70%. It will give a huge boost to UK manufacturing capacity, its EV supply chain and UK exports in general.
Ford estimates the investment will help secure 500 jobs at Halewood.
Schemes in Dunton, Essex
The loan will also help secure Ford’s ability to deliver engineering services in Dunton, Essex. A key feature of the UKEF EDG product is that it provides liquidity for Ford to use in their business as needed. This liquidity is critical for Dunton and will enable Ford’s flagship R&D facility to continue doing what it does best: grow the light commercial vehicle business, design new powertrains and vehicles, pilot new assembly lines for electrified components, and train engineers and apprentices. Training. For the transition from internal combustion engines to battery electric vehicles.
Ford estimates the investment will secure thousands of jobs in Dunton.
Ford UK Chairman Tim Slater said:
“This is an important next step for Ford to sell nine EVs in four years. Our UK workforce is playing a key role in Ford’s all-electric future, demonstrated by Dunton E:PriME’s innovation in finalizing Halwood’s new zero-emission powertrain and manufacturing processes.
Notes to editors
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The total contract value for Ford is £750m. UKEF provides a guarantee for 80% (£600m) of the facility.
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Halwood’s first phase was enabled with support from BEIS’s Automotive Transformation Fund, which supports UK businesses to industrialize the EV supply chain. This includes unlocking private investment in gigafactories, battery material supply chains, motors, power electronics and fuel cell systems. It is delivered by the Advanced Propulsion Center based in Coventry.
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UK Export Finance is the UK’s export credit agency and government department, working alongside the Department for International Trade as an integral part of its strategy and operations.
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Established in 1919, its mission is to advance prosperity by ensuring that no UK export fails due to lack of finance or insurance, to do so sustainably and at no net cost to the taxpayer.
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