U.K. to Give Ford $551 Million in Loan Guarantees to Boost Green-Car Development
By Scott Doggett March 18, 2010
The British government said today it would provide $551 million worth of loan guarantees from its Automotive Assistance Programme to support Ford Motor Co.'s development of environmentally friendly technologies across its U.K. sites.
Earlier, Nissan Motor Co. said it would build its much-awaited Leaf electric car at its Sunderland factory in northeast England, backed by a $31 million grant from Britain.
Nissan's production of the Leaf cars, as well as its batteries, would help safeguard and create over 550 highly skilled jobs at the plant, the government said.
The government's support for Nissan and Ford follows last week's announcement of a $412 million loan guarantee for General Motors' European arm to secure the company's operations in Britain and the rest of Europe.
"The automotive sector is of key importance to the U.K. It supports R&D, technological innovation, skills and a supply chain that's a mainstay of the wider manufacturing sector," U.K. Business Minister Peter Mandelson said in a statement.
Ford's plans to invest $2.29 billion over five years to develop low-emissions diesel and gasoline vehicles will protect around 2,800 jobs across its U.K. sites, the government said.
"As part of the automotive industry, Ford has an important role to play in the U.K.'s aim to be one of the leading manufacturers of low carbon vehicles," Mandelson said in a statement.
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