Ford to invest £230m into Halewood factory

Automotive giant Ford is investing £230m convert its Merseyside transmission plan to make e-drive systems for electric cars. Tony McDonough reports

Ford
Exterior of the Ford factory in Halewood

 

Auto giant Ford is investing up to £230m into its Merseyside factory to convert it to make e-drive systems for electric cars, safeguarding hundreds of jobs.

In March this year Ford offered the Halewood transmission plant, and its 700 workers, a big vote of confidence when it took full control of the facility in a move which saw the end of its 50/50 partnership with Magna PT, formerly known as Getrag.

Opened by Ford in 1963 as a car assembly plant, from the 1960s to the 1990s, the factory saw iconic Ford models such as the Escort, Capri and Orion roll off the production line. But in 1997, Ford said production of the Focus, the replacement for the Escort, would shift to Spain and Germany.

Its workforce switched to making transmissions for multiple Ford models. In recent years, it has produced transmissions for both passenger and commercial vehicles across Europe, for Ford and for Volvo.

However, automakers are now rapidly making the switch to hybrid and electric vehicles and it is being confirmed today that Halewood site will be converted to produce e-drives for electric vehicles, securing the future of the workforce and possibly leading to the creation of new jobs.

Power unit production in Halewood is expected to begin in mid-2024. Production capacity is planned to be around 250,000 units a year. The investment – which is subject to and includes UK Government support through its Automotive Transformation Fund – will help safeguard the Ford jobs at Halewood.

“This is an important step, marking Ford’s first in-house investment in all-electric vehicle component manufacturing in Europe. It strengthens further our ability to deliver 100% of Ford passenger vehicles in Europe being all-electric and two-thirds of our commercial vehicle sales being all-electric or plug-in hybrid by 2030,” said Stuart Rowley, president, Ford of Europe.

The decision is being welcomed by the UK’s Advanced Propulsion Centre (APC). Ford has secured funding through the APC’s Automotive Transformation Fund. It is seeded in a number of earlier collaborative low-carbon research and development projects.

Julian Hetherington, APC automotive transformation director, explains: “We are delighted that Ford has made this commitment to the UK and the Halewood site.

“We know that the insight and capability gained from various APC-supported projects, together with the ATF investment funding from Government to support the transition of its operations, put the Halewood site in a really strong position.

Ford
Ford will convert its Halewood factory to make power units for electric vehicles

 

“It is a great example of the importance of continuing to invest in collaborative research and development, as having that engineering expertise in the UK makes a stronger case for siting the manufacturing activity here and accelerates the UK’s progress towards net zero.”

The Ford Halewood site currently produce transmissions for internal combustion engines. ATF funding will support the transition of operations there and use and enhance existing skills of the workforce to manufacture electric drive units (EDUs).

EDUs, in simple terms, control all the elements that move the wheels on an electric vehicle, including the speed, torque and direction. Mr Hetherington added: “Our insight has identified more than £24bn of opportunity in the UK for the EV  passenger car market alone and £12bn of this is in power electronics and electric machines.”

The deal that saw Ford retain full control means the iconic blue Ford sign, for so long part of the fabric of the Halewood industrial landscape, was displayed proudly once again. For plant manager Andy Roche, the significance could not be underestimated.

He started his career as a Ford apprentice at Halewood in 1979 and he told LBN earlier this year the automotive industry was “critical” to the Merseyside economy. He added: “The automotive industry means a lot to people here. They would queue from the Pier Head to the factory gate if we advertised jobs at the plant.”

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