Ford to invest $316 million in all-electric car parts in UK

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Ford to invest $316 million in all-electric car parts in UK

LONDON, Oct 18 Reuters : Ford said on Monday it would invest up to 230 million British pounds $316 million to build electric vehicle components at its Halewood factory in northern England.

The plant will produce around 250,000 power units a year from mid 2024, Ford is the first European location to make electric vehicle parts for Ford, which has pledged that its car line-up for the continent by 2030 will be all electric by 2030.

The government is contributing to the investment through its Automotive Transformation Fund as manufacturers intensify their electrification plans ahead of combustion engine bans, and countries compete with each other to secure jobs.

The government has tended to provide around 10% of the total investment value for automotive firms.

This is an important step, marking Ford's first in-house investment in all-electric vehicle component manufacturing in Europe, said Ford President Stuart Rowley.

The carmaker also has a factory in Cologne, Germany for transmission. Halewood, which employs around 500 people, was chosen owing to its outstanding record on quality, competitiveness and the strong skills base and commitment of the employees Ford said.

Nissan pledged in July to make a new battery plant in Britain and Stellantis estimated that less than a week later its Vauxhall Ellesmere Port factory would build electric vans.

Following Brexit vote in the UK, many in the automotive industry were concerned about trade barriers but the December 2020 exit deal secured zero-tariff access to the sector, subject to a minimum level of parts sourced from the region.

In this highly competitive global race for an electric vehicle manufacturing, our priority is to ensure the UK reaps the benefits, said Kwasi Kwarteng.