Ford Motor Co. (NYSE: F) Receives Loan Guarantee From U.K. Government

Ford Motor Co. (NYSE: F) has received a 360 million GBP loan guarantee from the U.K. government for the company’s 450 million GBP European Investment Bank loan, as part of the company’s 1.5 billion GDP British investment plan over the next five years to build out a new generation of environmentally-friendly engines and cars.

The Dearborn, MI-based company has operations in Dunton, Essex in eastern England, which will benefit from the investment. The Wall Street Journal says that about 2,800 skilled jobs will be safeguarded by the funds. Ford Motor Co. (NYSE: F) also manufacturing plants in Dagenham, Southampton and Bridgend, south Wales.

The British government is pushing for a move to a low-carbon economy as part of an effort to create new jobs and secure the country’s global competitiveness with new technologies which will help fight climate change.

“Its [Ford’s] investment of GBP1.5 billion over the next five years is a great opportunity to take the lead in developing low-carbon manufacturing. This backing from the government will help to ensure the long-term success of manufacturing in the U.K. and make sure we are at the forefront of new technologies,” Business Minister Mark Prisk said.

The U.K. projects will support R&D cost for Ford Motor Co. (NYSE: F)’s commercial vehicles such as its Transit and Connect vans.

The investment includes a build-out of production facilities for new engines which produce lower amounts of CO2 at its Bridgend manufacturing lpant. 25% of all Ford engines worldwide and over 50% of all Ford diesel engines are made in the U.K.