Labour backs Ford with £1billion loan as Rachel Reeves hails 'major boost for Britain's auto sector'
Ford has been backed by a major £1billion investment from the UK Government as part of the brand's move to electric vehicles.
UK Export Finance (UKEF) is boosting the manufacturer with a £1billion export development guarantee as the legendary automaker continues its global transformation.
The loan will help Ford continue its development through engineering and maintain its electric vehicle offering for drivers.
Ford operates the UK's largest automotive research and development (R&D) centre in Dunton, Essex, while the brand employs more than 5,500 workers across the country.
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|Ford is being backed by the £1billion investment
Chancellor Rachel Reeves supported the new £1billion loan, saying that Ford had been the pride of Essex for more than 100 years.
She added: "This £1billion 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."
Ford has also invested heavily in electric vehicles, highlighted by its £380million transformation of the Halewood manufacturing plant, where it makes electric motors.
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Ford has invested heavily in its electric vehicle offering in recent years
The iconic Blue Oval has also invested £70million into testing and development labs at its Dunton site in Essex.
UKEF is guaranteeing 80 per cent of the £1billion, which is provided by Citi and a syndicate of lenders, with Citi being the sole coordinator of the loan.
As highlighted by Chancellor Reeves, the loan acts as evidence of Labour's plans through the Plan for Change, which the Government argues will "kickstart economic growth and raise living standards".
Lisa Brankin, Chair of 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."
This is the third export development guarantee awarded by UKEF to Ford, which totals almost £2.4billion since the start of the decade.
In June 2020, Ford was given a £625million loan to boost the manufacturer's global vehicle R&D headquarters in Dunton.
The second loan was provided in June 2022 to support Ford's electric vehicle plans and was worth £750million, of which £600million was guaranteed by UKEF.
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|Ford has now received three loans from UKEF
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."
Ford has seen impressive growth in its new car sales this year, with registrations up six per cent compared to the same time last year.
It has sold more than 60,000 new cars in the UK, capturing an impressive 5.8 per cent of the total market share.
The Ford Puma also remains the most popular car in the year-to-date with 26,355 new registrations, beating out other models including the Kia Sportage, Nissan Qashqai and Vauxhall Corsa.