UK, 1 August 2025: The UK Government has committed to supporting a £1 billion loan facility for Ford UK, reinforcing the nation’s strategy to advance electric vehicle manufacturing and protect thousands of skilled jobs across Ford’s British operations. The backing comes in the form of an export development guarantee, with UK Export Finance (UKEF) agreeing to underwrite 80% of the loan, equivalent to £800 million.
Citi is orchestrating the financing deal, supported by a syndicate of commercial lenders. The capital injection is aimed at strengthening Ford’s UK-based engineering and production capabilities for electric and connected vehicles. Key areas of investment include the ongoing transformation of the Halewood plant to build electric motors and enhancements to the company’s R&D centre in Essex.
This marks the third financing agreement between Ford and UK Export Finance (UKEF) within the last four years, bringing their combined value to nearly £2.4 billion. Earlier support included a £625 million investment in R&D operations in Essex and a £750 million facility aimed at scaling up EV power unit production.
In an official press release by the UK Government, Lisa Brankin, Chair of Ford Britain, welcomed the support, noting the importance of UK investments within Ford’s broader European strategy, and stated, “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 EV targets and customer demand.”
Chancellor Rachel Reeves, in the same press release, stated,“ Ford has been the pride of Essex since 1911, with over a century of innovation and industry. The R&D centre in Basildon employs thousands of people in well-paid, highly skilled jobs.
“This £1bn 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.”
In response to industry challenges, the UK Government has launched new measures to stimulate both EV production and uptake. This includes the continuation of the Electric Car Grant and revisions to the Zero Emission Vehicle (ZEV) mandate, which compels manufacturers to gradually increase the share of zero-emission cars in their fleets.
The government is also pursuing international trade reforms to enhance global competitiveness for UK-made electric vehicles. One notable breakthrough came through a trade agreement with the United States, which significantly reduced tariffs on British car exports from 27.5% down to 10%.
Altogether, these developments highlight a sector undergoing profound change. While challenges remain, the UK is working to align environmental priorities with industrial strength. Ford’s new financing package stands as a key example of collaborative efforts between government and industry to shape a sustainable and resilient future for British automotive manufacturing.
