Picture courtesy of FordA £1 billion export development guarantee is being provided to
Ford UK by
UK Export Finance (UKEF), to support the car company’s long-term growth ambitions. UKEF is guaranteeing £800 million of the £1 billion loan provided by the global investment bank
Citi and a syndicate of lenders. Citi is the sole coordinator and agent on the loan to Ford.
The automotive manufacturer has various UK sites, including the UK’s largest automotive research and development (R&D) centre in Essex, and has more than 5,500 direct employees throughout the country. UKEF says the loan will help Ford ‘continue its global transformation, engineering and manufacturing smart, connected, and electrified vehicles for customers around the world’.
Business and Trade Secretary Jonathan Reynolds said: “We are proud of our historic automotive sector, and the commitment that global companies like Ford have made to make cars and create jobs in the UK. I am 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.
“This Government has taken significant action to back automotive firms, including by securing trade deals with the USA and India to bring down tariffs for British car manufacturers and create new export opportunities ... In recent years, the company has invested heavily into electric vehicle (EV) 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 an advanced testing and development laboratory at its R&D site in Essex.”
Tim Reid, the UKEF’s chief executive, 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.”
Lisa Brankin, chair of Ford Britain, concluded: “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 EV targets and customer demand.