UK gives Ford £500m in loan guarantees to safeguard jobs

The UK government has given Ford £500m in loan guarantees shortly before the US carmaker closes one of its three British factories, in an attempt to safeguard jobs.

UK Export Finance gave the £500m guarantee to support a £625m loan by commercial banks to Ford of Britain.

The closure of the plant, which came around after the coronavirus pandemic hit sales and forced factories to close temporarily, will mean the loss of 1,700 jobs.

The government said the loan guarantee would support Ford exports, as well as helping it switch to electric vehicle manufacture, “safeguarding thousands of British jobs” at Ford’s Transit van design centre in Dunton, Essex, and its Dagenham diesel engine plant.

Graham Hoare, the chairman of Ford of Britain, 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.”

Ford of Britain’s role as one of the UK’s largest exporters reflects the carmaker’s global supply chain.

The UK government was particularly concerned by the closure as it is struggling to attract investment in the country from car makers over the ongoing Brexit uncertainty.