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• Government-backed loan will facilitate Ford investments into Essex and Merseyside, supporting thousands of local jobs.
• The loan will help Ford to increase its electric vehicle range from currently two to nine models.
• Investment is part of government plans to put the UK at the forefront of electric car development in Europe.

Ford has doubled down on its commitment to the UK as its European hub for electric vehicle powertrain production, thanks to 拢600 million of backing from UK Export Finance, supporting high-skill manufacturing jobs.

The investment is part of government鈥檚 plans to put the UK at the forefront of electric car development in Europe as the country transitions to net zero.

Ford has received support from UKEF through its Export Development Guarantee (EDG) scheme, which will turbo-charge Ford鈥檚 transition towards electrification, expand its manufacturing and export capacity and support continued investment in the UK.

Citibank Europe PLC were the sole coordinator and agent on the loan to Ford. There were six participant lenders who all have an equal share in the facility.

International Trade Secretary Kemi Badenoch said:

Our support for Ford is great news for jobs in Essex and Merseyside and British manufacturing as a whole. 聽聽Ford is a major employer in the UK and the high-skilled jobs it provides help communities to thrive.

We have consistently backed Ford as it makes its critical transition towards electrification. Boosting electric car production is key to our strategy to combat climate change and today鈥檚 news demonstrates how our manufacturing industry, our exports and our economy will benefit from this transition.

This announcement builds on previous government support for Ford鈥檚 EV expansion:

• July 2020: a 拢625m UKEF EDG facility (UKEF guarantee on 拢500m). This helped to finance Ford鈥檚 global vehicle research and development headquarters in Dunton in Essex, securing thousands of jobs and supporting the development of electric vehicle technologies.

• (ATF), which aims to electrify Britain鈥檚 automotive supply chain and protect our nation鈥檚 competitiveness in the global market. This investment funded phase one of the powertrain production line in Merseyside.

• This further 拢750m UKEF EDG (UKEF guarantee of 拢600m) announced today is phase two of Ford鈥檚 EV plans. The investment will significantly expand the powertrain production line capacity. It brings the total UKEF supported financings for Ford to almost 拢1.4 billion. (拢1.1bn guaranteed by UKEF)

Business Secretary Grant Shapps said:

The booming international market for electric vehicles keeps driving growth and creating jobs right across the UK. The auto industry is one of the shining lights of our economy, and we鈥檙e determined to help them seize the opportunity that鈥檚 unfolding, as the whole world shifts to guilt-free driving.

I鈥檓 delighted that we鈥檝e helped Ford unlock this important investment, which is another vote of confidence in the UK as one of the best locations in the world for automotive manufacturing.

Ford is one of the UK鈥檚 largest exporters. Engines and transmissions are transported from its facilities in Dagenham and Halewood to twelve countries on five continents.

Plans in Halewood, Merseyside

The UKEF-backed loan will initially support a 拢125 million investment to fund phase two of its electric vehicle powertrain manufacturing hub in Halewood, Merseyside, making the North-West a centre of excellence for electric vehicle production in Europe.

The Halewood plant鈥檚 electric powertrain volume is due to increase from 250,000 units to 420,000 units per annum as a result of the UKEF support. That鈥檚 a near 70% increase. It will provide a major boost to the manufacturing capability of the UK, its EV supply chain and UK exports generally.

Ford estimate the investment will help secure 500 jobs at Halewood.

Plans in Dunton, Essex

The loan will also help protect Ford鈥檚 ability to deliver Engineering Services in Dunton, Essex. A key feature of the UKEF EDG product is that it provides liquidity for Ford to use across their business as required. This liquidity is crucial for Dunton and will enable Ford鈥檚 flagship R&D facility to continue to do what it does best: developing the light commercial vehicle business, designing new powertrains and vehicles, piloting new assembly lines for electrified components, and training and upskilling engineers and apprentices for the transition from internal combustion engines to battery electric vehicles.

Ford estimate the investment will secure thousands of jobs at Dunton.

Tim Slatter, chairman of Ford UK, said:

鈥淭his is an all-important next step for Ford towards having nine EVs on sale within four years. Our UK workforce is playing a major role in Ford鈥檚 all-electric future, demonstrated by Halewood鈥檚 pivot to a new zero-emission powertrain, and Dunton E:PriME鈥檚 innovation in finalising the production processes.鈥�

Notes to Editors

1. The total contract value for Ford is 拢750m. UKEF is providing a guarantee for 80% of the facility (拢600m).

2. Phase One of Halewood was enabled with support from , which supports UK businesses to industrialise the EV supply chain. This includes unlocking private investment in gigafactories, battery material supply chains, motors, power electronics, and fuel cell systems. It is being delivered by the Advanced Propulsion Centre, based in Coventry.

3. UK Export Finance is the UK鈥檚 export credit agency and a government department, working along-side the Department for International Trade as an integral part of its strategy and operations.

4. Established in 1919, its mission is to advance prosperity by ensuring no viable UK export fails for lack of finance or insurance, doing that sustainably and at no net cost to the taxpayer.

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