Several car makers unveiled investment strategies for the U.K. Thursday, helping to cement recovery for the recession-hit industry in Britain.
The announcements came on the day that the Society of Motor Manufacturers and Traders, a U.K. industry group that compiles sales and production data, disclosed that car output in February jumped 62.7% from the same month a year ago, boosted by the weakness of sterling against other major currencies. Almost three-quarters of vehicles produced in the U.K. are exported.
Ford Motor Co.'s (F) European division said Thursday it plans to invest GBP1.5 billion in four U.K. facilities over the next five years as part of its effort to foster green technology after the U.S. auto maker secured a GBP360 million loan guarantee from the British government.
“Our customers will benefit from this extensive investment and so too will the 100,000 people in the U.K. whose jobs are directly or indirectly dependent on Ford,” Ford U.K. Chairman Joe Greenwell said in a statement.
Ford is the latest auto maker to allocate investment in electric cars and hybrid technology in the U.K., fostered by the government's willingness to provide funding for auto makers and safeguard jobs. U.K. Secretary of State for Business Peter Mandelson announced the GBP360 million backing of Ford's GBP450 million application to the European Investment Bank at the auto maker's site in Dagenham Thursday.
“The loan … encourages the growth of high-technology, CO2-reducing research and development in the country,” Greenwell said. Ford said the government's support represents a major step in seeking loan approval from the EIB.
Japan's Nissan Motor Co. (NSANY) said Thursday it will build its Leaf electric car at its U.K. plant in Sunderland, northeast England.
Nissan said that construction of its a lithium-ion battery plant, which was announced last year, is set to begin in April. The facility, which will be located at Sunderland as well, will have annual production capacity of 60,000 batteries and will start operations in 2012 for both Nissan and its French alliance partner, Renault SA (RNO.FR).
Nissan plans to invest more than GBP420 million in Sunderland in a move that would safeguard about 2,250 jobs at the company and related suppliers in the U.K. The investment will be supported by a GBP20.7 million grant for business investment from the U.K. government and a proposed EIB financing of up to GBP197 million.
General Motors Co.'s U.K. brand Vauxhall last week secured EUR300 million in loan guarantees from the U.K. government to support the Detroit auto maker's restructuring plan for Germany's Adam Opel GmbH unit and its British brand.
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Source: wsj.com
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