# Ford to invest around $300 million to build electric car parts at UK plant
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-10-18
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Ford to Invest £230 Million in UK for Electric Car
Meta Description: Ford announces £230 million investment to build electric car parts in northern England. Plant to produce 250,000 power units annually from mid-2024.
URL: https://financedigest.com/ford-to-invest-around-300-million-to-build-electric-car-parts-at-uk-planthtml

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LONDON (Reuters) – Ford said on Monday it would invest up to 230 million pounds ($316 million) to build electric car components at its Halewood factory in northern England.

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

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

The British government has tended to provide around 10% of the total [investment value](https://www.financedigest.com/procurementin-european-private-equity-investment-adding-value-to-the-boardroom.html "Procurement in European private equity investment – adding value to the boardroom.") for automotive firms.

This is an important step, marking Ford’s first in-house [investment in all-electric vehicle](https://www.financedigest.com/sainsburys-pays-524-million-for-full-ownership-of-store-investment-vehicles.html "Sainsbury’s pays 4 million for full ownership of store investment vehicles") component manufacturing in Europe,” said Ford’s Europe President Stuart Rowley.

The carmaker also has a transmission facility in Cologne, Germany. Halewood, which employs around 500 people, was chosen due to “its excellent record on quality, competitiveness and the strong skills base and [commitment of the employees”](https://www.financedigest.com/the-pandemic-means-that-its-time-to-double-down-on-our-commitment-wellbeing-and-employee-engagement.html "The pandemic means that it’s time to double down on our commitment wellbeing and employee engagement"), Ford said.

Nissan in July pledged to invest further in Britain with a new battery plant and Stellantis said less than a week later its Vauxhall Ellesmere Port factory would build [electric vans](https://www.financedigest.com/lack-of-electric-vans-opens-door-for-chinese-other-ev-makers.html "Lack of electric vans opens door for Chinese, other EV makers").

Following Britain’s 2016 Brexit vote, many in the automotive industry were concerned about trade barriers but the December 2020 exit [deal between London and Brussels secured](https://www.financedigest.com/incentive-fm-secures-new-deal-with-dollar-uk.html "Incentive FM Secures New Deal with Dollar UK") zero-tariff access for the sector, subject to a minimum level of parts sourced from the region.

In this highly competitive, global [race to secure electric](https://www.financedigest.com/new-suppliers-race-to-plug-in-to-electric-car-market.html "New suppliers race to plug in to electric car market") vehicle manufacturing, our priority is to ensure the UK reaps the benefits,” said business minister Kwasi Kwarteng.

($1 = 0.7273 pounds)

(Reporting by Costas Pitas; Editing by Frances Kerry)


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