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Iconic car manufacturer Ford continues global transformation as government backs new loan
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Financing assists Ford’s operations in developing world-leading products, including cleaner engines and electric power units while supporting thousands of jobs
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Latest action in the government’s Plan for Change and in support for the UK’s automotive sector as part of the Industrial Strategy
UK Export Finance (UKEF) is providing a £1 billion export development guarantee to Ford UK, supporting the car giant’s long-term growth ambitions around the world.
Ford operates various sites across the country including the UK’s largest automotive research & development (R&D) centre based in Essex and directly employs more than 5,500 workers across the country.
The loan will help Ford continue its global transformation, engineering and manufacturing smart, connected and electrified vehicles for customers around the world.
Chancellor of the Exchequer Rachel Reeves said:
Ford has been the pride of Essex since 1911, over a century of innovation and industry. The R&D centre in Basildon employs thousands of people in well-paid, highly skilled jobs.
This £1 billion loan guarantee is a major boost for Britain’s auto sector. It will help develop world-leading products, open new export markets, and secure jobs. This is our Plan for Change in action – delivering growth and putting more money in people’s pockets.
Business and Trade Secretary Jonathan Reynolds said:
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, helping to cement our position as a global leader for manufacturing and backing our Plan for Change.
This Government has taken significant action to back auto firms – including by securing landmark trade deals with the US and India to bring down tariffs for British car manufacturers and create new export opportunities, measures to lower electricity prices in our Industrial Strategy, and updating the ZEV mandate to support UK manufacturers and safeguard jobs of the future.
In recent years, the company has invested heavily into electric vehicle development, including a £380 million transformation of its Halewood manufacturing plant from producing transmissions to electric motors for iconic vehicles like the Ford Transit van and Ford Puma. Ford has also invested £70 million in state-of-the-art testing and development labs at its R&D site in Essex.
This follows several significant announcements in recent months showing the government backing the UK’s automotive sector. This includes launching an Electric Car Grant to support the transition to zero emission vehicles and incentivise sustainable manufacturing, and the publication of the Advanced Manufacturing Sector Plan and Modern Industrial Strategy, which commits £2 billion capital and R&D funding to 2030, and an additional £500 million to extend the R&D support to 2035. This support is giving innovative manufacturers the confidence to pursue technological advancements needed in the automotive sector.
UKEF is guaranteeing 80 per cent (£800 million) of the £1 billion loan provided by Citi and a syndicate of lenders. Citi is the sole coordinator and agent on the loan to Ford.
This announcement forms part of the government’s Plan for Change to kickstart economic growth and raise living standards across the United Kingdom by supporting businesses to export and grow.
British car manufacturers now benefit from major tariff reductions when exporting to the US, thanks to the landmark trade deal secured with the US. The UK is the only country to have secured this deal with the US, which reduces car export tariffs from 27.5% to 10%, saving manufacturers hundreds of millions each year and protecting hundreds of thousands of jobs, backing the Plan for Change.
UKEF Chief Executive Tim Reid said:
This is a great example of UKEF’s collaboration with the automotive industry, which is a key sector of the government’s Industrial Strategy. Our export development guarantee is a versatile product that has lasting impact on businesses. Boosting growth, securing key jobs, growing the UK’s export potential and doing so sustainably – that’s what UKEF does best.
Lisa Brankin, Chair, Ford Britain, said:
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.
Richard Hodder, Global Head of Export and Agency Finance at Citi, said:
Citi is pleased to partner with Ford and UK Export Finance on this significant transaction. This third UKEF Guarantee loan under the EDG program demonstrates our dedication to supporting Ford’s global innovation and UK export operations. This transaction showcases both the cross-border expertise and local knowledge that Citi’s Services business provides clients in the UK, and around the world.
This is the third EDG awarded by UKEF to Ford, taking total financing to almost £2.4 billion (£1.9 billion guaranteed by UKEF) since 2020:
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June 2022: £750 million UKEF EDG (UKEF guarantee of £600 million) supported phase two of Ford’s electric vehicle plans. The investment significantly expanding Ford’s electric power unit production line capability.
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June 2020: a £625 million UKEF EDG facility (UKEF guarantee on £500 million). This helped to finance Ford’s global vehicle research and development headquarters in Dunton in Essex, securing key of jobs and supporting the development of electric vehicle technologies.
This latest announcement follows the recent publication of UKEF’s annual report & accounts for 2024/25.
Over the last financial year, UKEF provided a record £14.5 billion in new financing, helping over 667 UK companies to export and grow and supported up to 70,000 jobs.
