The government is to provide GBP360m in loan guarantees towards six projects through its Automotive Assistance Programme (AAP). The guarantee will back a proposed loan of GBP450m which is being considered by the European Investment Bank (EIB).
Ford said that its plans will safeguard around 2,800 skilled jobs in the UK at its research and development center at Dunton in Essex and its manufacturing plants in Dagenham, Southampton and Bridgend in South Wales. Ford currently provides 29% of the UK’s automotive sector research and development.
The projects to be supported cover research and development for Ford’s commercial vehicles such as the Transit and Connect vans and the development of low carbon emission diesel and petrol engines.
This includes investment in production facilities for new lower carbon engines in Bridgend, which was also supported by the Welsh Assembly Government last year.
Lord Mandelson, business secretary, said: “Ford is a major investor in research and development in the UK. Its proposals represent further significant investment in the UK. The government stands ready and willing to support these innovative R&D projects backed by a highly skilled workforce.
“As part of the automotive industry, Ford has an important role to play in the UK’s aim to be one of the leading manufacturers of low carbon vehicles.”
Joe Greenwell, chairman of Ford, said: “Ford welcomes this positive support from the government. It greatly assists in delivering Ford’s commitment to invest over GBP1.5bn in new, affordable, volume-produced low CO2 technologies.”
