UK Government Backs Ford With $1.3 Billion Loan

Ford is facing its fair share of market uncertainties amid changing tariffs and new trade deals, coupled with sustained high interest rates and costs. As such, the automaker just secured a $3 billion term loan credit agreement in the U.S. to give itself some financial flexibility and increase liquidity. In the UK, Ford is now benefiting from new incentives designed to help boost EV sales – which have been lagging to date – and now, the UK government is also backing The Blue Oval with a large loan of its own.

The UK Export Finance (UKEF) has announced that it’s providing a £1 billion ($1.3 billion USD) export development guarantee to Ford UK, which is designed to help the automaker continue its global expansion, as well as develop new vehicles. In the UK alone, Ford operates various sites including the largest research and development center in the country, and it directly employs over 5,500 workers. The news comes on the heels of a new trade deal reached between the UK and the U.S., which results in auto export tariffs being reduced from 27.5 to 10 percent.

“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,” said Lisa Brankin, Chair, Ford Britain. “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 electric vehicle targets and customer demand.”

“We’re proud of our historic auto sector, and the commitment that global companies like Ford have made to make cars and create jobs in the UK,” added Business and Trade Secretary Jonathan Reynolds. “I’m delighted that UKEF is backing Ford in supporting the company’s ambitions for growth, helping to cement our position as a global leader for manufacturing and backing our Plan for Change.”