Ford UK has received a significant boost in its push toward electrified mobility and international expansion, as UK Export Finance (UKEF) steps in with a £1bn Export Development Guarantee (EDG).
The investment, backed 80% by the UK Government, will provide crucial funding for the automaker’s ongoing transformation into a leader in EV production and advanced automotive technology.
This new loan, arranged by Citi alongside a syndicate of lenders, marks the third such facility extended to Ford UK by UKEF since 2020.
The total value of government-backed financing to Ford UK now approaches £2.4bn, with UKEF guaranteeing £1.9bn across three separate investments.
Business and Trade Secretary Jonathan Reynolds commented: “We’re proud of our historic auto sector, and the commitment that global companies like Ford have made to make cars and create jobs in the UK.
“I’m delighted that UKEF is backing Ford in supporting the company’s ambitions for growth.”
Massive investment in UK-based EV manufacturing and R&D
Ford’s operations in the UK are pivotal to its global electrification strategy. The company employs over 5,500 people across various sites, including its state-of-the-art R&D centre in Dunton, Essex – the largest automotive research hub in the UK.
Recent capital injections have significantly advanced Ford’s EV capabilities. A £380m investment has transformed its Halewood plant in Merseyside into a cutting-edge facility for electric motor production, shifting away from traditional transmission manufacturing. The plant will power flagship models like the all-electric Ford Transit and Puma.
Additionally, Ford has channelled £70m into enhancing its R&D and testing facilities in Essex, ensuring it remains at the forefront of engineering smart, connected, and electrified vehicles.
Lisa Brankin, Chair of Ford Britain, highlighted the significance of the support: “Recent investments in the UK have proved crucial to our European operations and have expanded our UK export capability, on top of supporting Ford’s investment in an all-electric product line-for Europe.
“This new UKEF facility will play an important role in supporting our UK exporting footprint, especially amid the continued uncertainty in the trade landscape and the disconnect between electric vehicle targets and customer demand.”
Strategic UK Government support for automotive innovation
The government’s endorsement of Ford UK is part of a wider commitment to revitalise the automotive industry while transitioning to a zero-emissions future.
Initiatives such as the Electric Car Grant, the Advanced Manufacturing Sector Plan, and the Modern Industrial Strategy have collectively earmarked more than £2.5bn in support for sustainable vehicle development through to 2035.
This coordinated approach aims to bolster the UK’s role as a leader in clean technology and future mobility, while creating jobs, attracting investment, and stimulating economic growth across the nation.
Boosting exports through strategic trade deals
As Ford UK accelerates its EV production capabilities, it also stands to benefit from improved access to global markets.
Thanks to a landmark trade agreement with the United States, British car manufacturers now enjoy a dramatic reduction in export tariffs – from 27.5% down to 10%.
This deal, unique to the UK, is expected to save manufacturers hundreds of millions annually and solidify job security within the industry.
Continued partnership between Ford and UKEF
The latest £1bn funding deal builds on previous UKEF guarantees:
- June 2022: £750m EDG with a £600m UKEF guarantee supported the scale-up of Ford’s electric power unit production.
- June 2020: £625m EDG, of which £500m was guaranteed, helped establish the global vehicle R&D headquarters in Essex and supported EV tech development.
This long-term collaboration underscores the government’s confidence in Ford UK as a cornerstone of the country’s EV future, export growth, and technological leadership in the automotive sector.
