Ford to invest £230million in UK factory for electric vehicle parts

Car giant Ford says it will invest £230million transforming UK factory site into making power units for its all-electric passenger and commercial vehicles – safeguarding hundreds of jobs

  • Halewood to be Ford’s first electric vehicle component in-house assembly site in Europe 
  • Merseyside factory will supply all-electric power units from 2024 
  • The £230million includes investment from Government-funded scheme
  • Ford has committed to having all-electric passenger vehicles by 2030

Car giant Ford is to invest £230 million in one of its UK factories to make electric vehicle components, giving a considerable boost to the motor industry.

The company said the plant at Halewood on Merseyside will be ‘transformed’ to build electric power units for future Ford all-electric passenger and commercial vehicles in Europe.

Halewood will be Ford’s first electric vehicle component in-house assembly site in Europe, with production beginning in 2024 – safeguarding hundreds of jobs in the process.

Ford has committed to having all-electric passenger vehicles and two-thirds of its commercial vehicle sales all-electric or plug-in hybrid by 2030.

Power unit production in Halewood is expected to begin in mid-2024, with capacity planned to be around 250,000 units a year.

Ford said the investment is subject to, and includes, Government support through its Automotive Transformation Fund (ATF).  

The company said the plant at Halewood on Merseyside (pictured) will be ‘transformed’ to build electric power units for future Ford all-electric passenger and commercial vehicles in Europe

Halewood will be Ford’s first electric vehicle component in-house assembly site in Europe, with production beginning in 2024 – safeguarding hundreds of jobs in the process. Photo shows a Ford worker at the car manufacturer’s plant in Halewood, Merseyside

Ford has committed to having all-electric passenger vehicles and two-thirds of its commercial vehicle sales all-electric or plug-in hybrid by 2030. Photo shows the 2019 electric Ford Mustang Mach-E vehicle

The ATF fund is highlighted as an important initiative to reach targets in the UK Government’s 10-point plan for a green industrial revolution and its recent Transport Decarbonisation Plan. 

The UK upstream supply chain opportunity for electrified vehicle technologies has an estimated value of £24 billion, meaning the investment is a timely boost for the future of the UK motor industry.

Stuart Rowley, president of Ford of Europe, said: ‘This is an important step, marking Ford’s first in-house investment in all-electric vehicle component manufacturing in Europe.

‘It strengthens further our ability to deliver 100% of Ford passenger vehicles in Europe being all-electric and two-thirds of our commercial vehicle sales being all-electric or plug-in hybrid by 2030.

‘We also want to thank the UK Government for its support for this important investment at Halewood which reconfirms Ford’s continuing commitment to the UK and our position as a leading investor in this country’s auto industry and technological base.’

Ford’s £230million investment explained

Ford’s Halewood plant will begin manufacturing electric power units in 2024

The new power units are designed to replace the engine and transmission in petrol cars by 2024

Part of the investment will come from the government’s Automotive Transformation Fund (ATF)

The ATF fund is highlighted as an important initiative to reach targets in the UK Government’s 10-point plan for a green industrial revolution 

The UK upstream supply chain opportunity for electrified vehicle technologies has a value of £24 billion – the new investment is a massive boost to the motor industry

Unite general secretary Sharon Graham said: ‘This investment is excellent news for the highly skilled workforce at Halewood as it secures the future of the plant.

‘It is absolutely imperative that the Government does not see this investment as a one-off but supports similar schemes to ensure the entire UK automotive industry experiences a smooth transition in the move to build electric vehicles.’

Unite national officer Des Quinn added: ‘Unite is absolutely dedicated to protect the jobs, pay and conditions of all our members and is working to ensure that similar projects are adopted throughout the UK’s world class automotive sector.’

Ford said Halewood was chosen to supply the power units, which replace the engine and transmission in a conventional petrol or diesel engine vehicle, given its excellent record on quality, competitiveness and the strong skills base and commitment of the employees.

Halewood currently builds transmissions for a number of Ford passenger and commercial vehicles and exports all of its production.

Ford is one of the UK’s largest exporters, exporting engines and transmissions from its facilities to more than 15 countries on six continents – with overseas sales generating around £2.5 billion annually.

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