Sunita Somvanshi
Britain’s government has provided a £1 billion guarantee to support Ford UK’s electric vehicle production and safeguard thousands of positions across the country. This financial assistance arrives as manufacturers face challenges aligning electric car production goals with actual consumer preferences.
UK Export Finance (UKEF), a government agency, is covering 80% of the loan provided by Citi bank and other lenders. The money will help Ford develop and build smarter, cleaner vehicles for customers around the world.
“Ford has been the pride of Essex since 1911,” said Chancellor Rachel Reeves. “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.”
The automotive company maintains a workforce exceeding 5,500 individuals throughout the United Kingdom, with operations including the nation’s primary automotive research facility in Essex. The company has already spent £380 million to transform its Halewood factory in Merseyside, switching it from making transmissions to producing electric motors for vehicles like the Ford Transit van and Ford Puma. The automaker has put an additional £70 million toward advanced testing facilities at its Essex-based research complex.
This marks the third time since 2020 that the government has backed Ford with loan guarantees, bringing the total support to almost £2.4 billion. This initiative forms part of the administration’s “Plan for Change” strategy aimed at economic expansion and improving quality of life standards.
Lisa Brankin, Chair of Ford Britain, highlighted the challenges facing car makers today: “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.”
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Westminster has lately rolled out various initiatives supporting the automotive sector, including an Electric Car Grant improving affordability of zero-emission vehicles, alongside commercial agreements with the US and India reducing taxes on British-made vehicles. The US deal cuts export tariffs from 27.5% to 10%, potentially saving manufacturers hundreds of millions each year.
Business 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.”
The government has also published its Advanced Manufacturing Sector Plan and Modern Industrial Strategy, promising £2 billion in funding until 2030 and an extra £500 million extending to 2035. This gives manufacturers confidence to invest in new technology.
“This is a great example of UKEF’s collaboration with the automotive industry,” said UKEF Chief Executive Tim Reid. “Boosting growth, securing key jobs, growing the UK’s export potential and doing so sustainably – that’s what UKEF does best.”
The loan comes at a crucial time for Britain’s car industry, which has seen production numbers fall but expects a recovery by 2026. The government’s support aims to bridge the gap between ambitious electric vehicle targets and current consumer demand, helping to secure the future of UK car manufacturing.
During the previous fiscal year, UKEF delivered unprecedented financial support totaling £14.5 billion, assisting more than 667 British businesses with their export operations and contributing to approximately 70,000 employment opportunities nationwide.
