The UK Government is backing Ford’s shift to electric vehicle production with a massive £1 billion export guarantee, part of its broader “Plan for Change” to grow the economy and secure green
jobs.
What’s happening?
UK Export Finance (UKEF) is supporting a major loan for Ford UK that will fund its global transition to producing cleaner, smarter, and more connected electric vehicles. The funding also safeguards thousands of jobs across Ford’s UK sites, including its R&D centre in Essex — the largest of its kind in the UK.
Why it matters:
-The move supports Ford’s investments in EV development, including a £380 million upgrade of its Halewood plant to build electric motors.
- An additional £70 million has gone into testing labs in Essex.
- UKEF is guaranteeing 80% of the £1 billion loan arranged by Citi and other lenders.
The bigger picture:
This is the third major export guarantee UKEF has given Ford since 2020, bringing the total to almost £2.4 billion. Previous support helped build electric power units and expand Ford’s R&D capacity in the UK.
The deal also follows other major government initiatives:
- Launch of the Electric Car Grant to boost zero-emission vehicle adoption
- Publication of the Advanced Manufacturing Sector Plan
- £2 billion committed to R\&D in the automotive sector through 2030, with £500 million more to extend support to 2035
In short:
The UK is betting big on electric vehicles — and backing Ford to lead the charge.
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”.
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”.
Photo by Vauxford, Wikimedia commons.