LONDON - The UK government has granted a 500 million pound ($640 million) loan guarantee to Ford Motor to support the automaker’s substantial exports of engines and transmissions from Britain.
The guarantee will help Ford to increase investment in electrification and protect jobs at its sites in Essex and Dagenham, the UK's Department for International Trade said in a statement on Tuesday. Know more about What is the Future of Insurance Telematics in the UK?
What is Expected in Return:
The guarantee covers 80 percent of a 625 million-pound loan from commercial banks. "This financing will help to maintain Ford as a key UK exporter," said Graham Hoare, chairman of Ford in Britain, in a statement
About 85 percent of the engines and 100 percent of the transmissions the company builds in the UK are shipped overseas. The value of Ford's UK exports, including machined engine components, is around 2.5 billion pounds annually, Hoare said. Know more about Top 10 Winter Tips To Prepare Your Trucks or Vehicles in US, Canada & UK
Ford and its automotive peers in the UK face an uncertain future, with the prospect of tariffs on sales to the EU looming in the event of a no-deal Brexit next year. They also face extra red tape in the form of customs declarations, separate regulatory regimes, and proving the origin of their goods.
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