The UK Government has pledged support for Ford UK’s international growth ambitions with a £1bn export development guarantee from UK Export Finance (UKEF). The move aims to bolster the carmaker’s transformation towards producing smart, connected and electrified vehicles for global markets.
Key takeaways:
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£1bn loan guarantee – UK Export Finance backs Ford UK with 80% guarantee on £1bn facility.
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Supports transformation – Funding will drive development of smart, connected and electric vehicles.
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Jobs protected – Ford employs over 5,500 people across UK sites, including the largest auto R&D centre in Essex.
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Major UK investment – Recent projects include £380m Halewood EV motor plant and £70m Essex testing labs.
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Part of Plan for Change – Government initiative to boost manufacturing, exports and green innovation.
The loan, provided by Citi and a syndicate of lenders, will be 80% guaranteed by UKEF. Citi is acting as sole coordinator and agent for the facility.
Ford operates multiple sites in the UK, including the country’s largest automotive research and development (R&D) centre in Essex, and employs more than 5,500 people nationwide. The company has made substantial investments in the UK in recent years, including £380m to convert its Halewood plant from producing transmissions to manufacturing electric motors for models such as the Ford Transit and Ford Puma, and £70m in advanced testing and development facilities at its Essex R&D site.
Chancellor of the Exchequer Rachel Reeves described the loan guarantee as “a major boost for Britain’s auto sector” that would “help develop world-leading products, open new export markets, and secure jobs.” Business and Trade Secretary Jonathan Reynolds said the move would “cement our position as a global leader for manufacturing” and highlighted recent government action to support automotive firms, including trade deals with the US and India, lower industrial electricity prices, and updates to the Zero Emission Vehicle mandate.
The announcement comes amid a broader package of government support for the automotive industry, including the Electric Car Grant, the Advanced Manufacturing Sector Plan, and the Modern Industrial Strategy, which together commit billions in capital and R&D funding to 2035.
As part of its Plan for Change, the government says the Ford deal will safeguard skilled jobs, drive export growth and enhance the UK’s position in the global automotive market.
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