Ford secures another £1 billion in government-backed funding to accelerate its UK electric vehicle operations, bringing total government support to nearly £2.4 billion since 2020.
The Export Development Guarantee facility was arranged by Citi with 80% backing from UK Export Finance. It’s the third such funding round Ford has received in four years.
The new money will scale EV production and boost research and development. It’ll also strengthen UK exports as the global automotive market shifts toward electrification.
Ford employs more than 5,500 people across Britain and considers the UK central to its worldwide electric vehicle strategy.
The company’s Dunton facility in Essex operates as Britain’s largest automotive research center. Engineers there develop smart, connected, and electric vehicle technologies for global markets.
Ford has pumped serious money into electrifying its UK operations recently. A £380 million investment transformed its Halewood plant in Merseyside into a facility producing electric power units instead of traditional transmissions.
The retooled plant supplies components for next-generation models including the all-electric Transit and Puma.
Another £70 million went toward enhancing Ford’s testing and development capabilities in Essex, according to company reports.
“Recent investments in the UK have proved crucial to our European operations and have expanded our export capability,” said Lisa Brankin, Chair of Ford Britain. “This new UKEF facility will play an important role in supporting our UK exporting footprint, especially amid continued trade uncertainty and the gap between EV targets and consumer demand.”
Building on Previous Support
The latest funding builds on substantial previous government backing:
- June 2022: £750 million EDG with £600 million UKEF guarantee for electric power unit production scaling
- June 2020: £625 million EDG with £500 million guaranteed, supporting Ford’s global R&D hub development and EV technology programs
Business and Trade Secretary Jonathan Reynolds welcomed the continued partnership.
“We’re proud of our historic auto sector, and of global companies like Ford that continue to innovate and invest here. I’m delighted that UKEF is backing Ford in supporting the company’s ambitions for growth.”
The government’s Ford support fits within a broader £2.5 billion commitment to Britain’s green transport transition. That includes the Electric Vehicle Grant, Advanced Manufacturing Plan, and Modern Industrial Strategy.
These programs aim to position the UK as a leader in zero-emission mobility while creating jobs and delivering growth.
Transport and manufacturing leaders hope Ford’s investment will spark additional private-sector activity. They want to secure Britain’s role in tomorrow’s mobility landscape.
Ford UK also stands to benefit from a new UK-US trade agreement. The deal cuts export tariffs on vehicles from 27.5% down to just 10%.
Industry analysts forecast the tariff reduction will save British car manufacturers hundreds of millions annually. It should strengthen job security across the automotive supply chain too.
With government support, rising global EV demand, and improved market access, Ford UK appears positioned to lead Britain’s automotive sector through its electric transition.
