Currently reading: Ford secures £500 million loan guarantee from UK government
Loan will boost exports and EV investment and “secure thousands of British jobs”
News
2 mins read
23 July 2020

The UK government has given Ford a £500 million loan guarantee to help increase exports, boost EV investment and “safeguard” jobs in the wake of the coronavirus pandemic.

The guarantee, which covers 80% of the loan, is awarded by the UK’s export credit agency, UK Export Finance, and supplements another, £625m loan by commercial banks to Ford of Britain.

International trade secretary Liz Truss said: “This deal firmly puts the UK at the heart of Ford’s plans to grow its export business, reduce emissions and support skilled manufacturing jobs.

“A thriving automotive industry is vital to the success of the UK economy. It brings prosperity and security to manufacturers across the country. That’s why we are putting its needs at the heart of our strategy to remove barriers to trade when negotiating free-trade deals.”

Ford of Britain is one of the UK’s largest exporters, exporting around 85% of the engines and 100% of the transmissions it builds to more than 15 countries on six continents, but it is closing its Bridgend engine plant in South Wales in September, with the loss of 1700 jobs.

The £500m loan is intended to boost exports and prevent similar job losses at Ford’s other engine factory, in Dagenham, as well as its Dunton campus in Essex. It will also help Ford to electrify more of its vehicles, following the announcement of its first all-electric Transit, set to be launched in 2021.

Last year, the government gave an almost identical £500m loan guarantee to support Jaguar Land Rover’s electrification schemes.

READ MORE

Ford Bridgend closure: further jobs could go in no-deal Brexit 

Analysis: What went wrong at Ford's Bridgend plant? 

Ford: Free-trade agreement critical for UK car industry’s survival

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Comments
5

23 July 2020

Some boast that regarding exporting so many engines and gearboxes, wonder why. Ans : because they moved their car production to Europe and sacked the uk workforce, thanks Ford and the eu. Spend your loan wisely because I'll have to fork out if it goes wrong.  Wonder where the electric Transit will be built, Turkey.

23 July 2020

...US Secretary of State visits the UK government. A US firm getting UK tax payer bail out, whilst closing down their Wales engine plant with 1700 jobs lost.

"Taking back control"

23 July 2020
So last year HMG lent JLR £500m to stop them using the engines that Ford were making for them.

So Ford had to close the plant as they had no customers for the engines they could make there.

Now HMG are lending Ford £500m to keep their other engine plant going so they can export the engines to other countries to make cars there.

What a strange strategy. Suppose it's a bit like supporting Airbus in Chester to make bits of planes that are then produced in other countries.

23 July 2020
This is a part of the government's strategy to ensure a no deal Brexit, by spraying state aid around, against EU competition rules.

23 July 2020
NavalReserve wrote:

This is a part of the government's strategy to ensure a no deal Brexit, by spraying state aid around, against EU competition rules.

Other EU countries have been doing it for years and ignoring the rules, whilst the UK abided by them, but guess what, we are not in the EU anymore, so we dont need to abide by them any longer, and lets not forget the aid the EU gave to Ford to move to Turkey..  

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