Transport

Ford’s move to low-carbon vehicles backed by UK Government

US carmaker Ford’s proposed £1.5 billion investment in a new generation of low-carbon vehicles is being backed with £360 million in loan guarantees from the UK Government.

The investment will support six projects focusing on commercial vehicles such as the Transit and Connect vans and the development of low-carbon petrol and diesel engines.

The loan guarantee is part of the Government’s Automotive Assistance Programme (AAP), which is investing up to £2.3 billion in the UK’s automotive sector, and will back up a proposed loan of £450 million from the European Investment Bank (EIB).

The funds should secure around 2800 jobs at Ford’s UK research and development centre in Dunton, Essex and its manufacturing facilities in Dagenham, Southampton and Bridgend in South Wales.

Ford currently makes 25% of all its engines in the UK and over 50% of its diesel engines in the UK. Last year, the Welsh Assembly Government invested £13.4 million in the Bridgend plant to produce low-carbon engines.

“Ford has an important role to play in the UK’s aim to be one of the leading manufacturers of low carbon vehicles,” commented Business Secretary Lord Mandelson.

The move is the latest boost to the UK automotive sector, following the announcement yesterday that Nissan plans to build its zero-emission LEAF electric car at its Sunderland plant in the North East.

For further information:
www.berr.gov.uk/
www.ford.com

19 March 2010

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