Ford’s development of low carbon engines is to receive new financial support from the Government, it has been revealed.
Business Secretary Lord Mandelson today announced that the Government has agreed to back Ford’s proposed £1.5 billion investment over five years for development of a new generation of environmentally friendly engines and vehicle technologies.
The Government is to provide £360 million in loan guarantees towards six projects through its Automotive Assistance Programme (AAP). The guarantee will back a proposed loan of £450 million which is being considered by the European Investment Bank (EIB).
Ford’s plans will safeguard around 2,800 skilled jobs in the UK at its research and development centre at Dunton in Essex as well as its manufacturing plants in Dagenham, Southampton and Bridgend in South Wales. The carmaker currently provides 29 per cent of the UK’s automotive sector research and development.
The news comes as Lord Mandelson also welcomed the confirmed production of Nissan’s all-electric LEAF model this morning too, further boosting UK automotive production and securing the UK at the heart of low carbon technology revolution.
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. Currently 25 per cent of all Ford engines worldwide and over 50 per cent of all Ford diesel engines are made in the UK
Visiting Ford’s Dagenham plant today, Lord Mandelson 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."
Ford Chairman Joe Greenwell said: "Ford welcomes this positive support from the Government. It greatly assists in delivering Ford’s commitment to invest over £1.5 billion in new, affordable, volume-produced low CO2 technologies."
