The government has given Ford a £500 million loan guarantee to help safeguard jobs after the coronavirus disruption. The guarantee covers 80% of a £625 million loan Ford has received from commercial banks, which will also go towards maintaining exports and developing electrified vehicles.
International trade secretary Liz Truss said: “This deal firmly puts the UK at the heart of Ford’s plans to grow its export business, reduce emissions and support skilled manufacturing jobs. A thriving automotive industry is vital to the success of the UK economy. It brings prosperity and security to manufacturers across the country. That’s why we are putting its needs at the heart of our strategy to remove barriers to trade when negotiating free-trade deals.”
Despite no longer making cars or the Transit van in the UK, Ford is still one of the biggest exporters in the UK thanks to its engine and transmission manufacturing plants.
Chairman of Ford of Britain, Graham Hoare, said: “Ford's manufacturing operations are already an export success story, with around 85% of engines and 100% of transmissions built in the UK exported.This financing will help to maintain Ford as a key UK exporter.”
Keyword: Ford secures £500 million loan guarantee from government