Ford plans to invest an additional £125 million ($152 million) in electric vehicle parts production at its Halewood plant that will make it a critical part of the company’s European zero-emissions ambitions, according to The Guardian.
The factory on Merseyside will build 420,000 electric drive units annually from 2024 under the plan, a growth from the initial 250,000 planned, Ford announced.
Ford’s shift from fuel to electric
The US automaker announced the transition at Halewood from gearboxes for petrol and diesel cars to drive unit production, including electric motors and power electronics, in October 2021. The extra investment means Ford will spend £380 million ($464 million) on upgrading Halewood and the van design center in Dunton, Essex, for EVs.
The initial investment decision, supported by about £30 million ($36 million) in UK government funding, provided the UK industry with a significant boost amidst concerns that well-paid jobs in the industry can transition to other countries if firms decide to invest in EV plants somewhere else.
The Halewood site employs around 500 workers. The automaker said the new investment would “secure employment,” even though it is possible that the output expansion would create additional jobs.
Automakers’ plants across England
Ford shut its Bridgend factory, which produced diesel and petrol engines, in 2019, with the loss of 1,700 jobs, whereas the Japanese carmaker Honda said it planned to shut its Swindon plant last year.
However, Vauxhall owner Stellantis announced it will upgrade its Ellesmere Port plant to build electric vans, easing a longstanding concern over the fate of another significant car plant across the River Mersey. Additionally, Ford produces diesel engines for vans in Dagenham, Essex.
Furthermore, the company said in 2021 that the cars it sells in Europe will be electric by 2030, following the UK government’s plan to ban the sale of gasoline-powered cars by 2030 and hybrids by 2035. Ford also aims to make two-thirds of commercial vehicle sales fully-electric or plug-in hybrid by 2030.
Ford’s goal in Europe
Our vision in Europe is to build a thriving business, by extending leadership in commercial vehicles and through the electrification of our car range. Halewood is playing a critical part as our first in-house investment in EV component manufacturing in Europe.
Kieran Cahill, Ford’s European industrial operations vice-president
The company said that the investment means that the Halewood plant will build 70% of the 600,000 electric drive units for all Ford EVs sold in Europe by 2026. The parts will be utilized in the Transit Custom and Tourneo Custom vans’ electric versions, the UK best-selling Puma crossover SUV’s electric version and possibly in future cars.
