Ford investing $306M more at Dagenham for new generation of 2.0L diesels; LCVs from 2016 and cars from 2018

20 October 2014

Ford is investing an additional £190 million (US$306 million) at its Dagenham London site to produce a family of all-new advanced 2.0-liter diesel engines (code-named Panther) in a wide range of outputs due to be applied in commercial vehicles starting in 2016 and in cars starting in 2018. (Earlier post.) This investment includes £8.9 million (US$14.3 million) from the Government’s Regional Growth Fund. Ford is creating 318 new jobs connected with this investment.

The announcement confirms the second phase of investment in the new engine program following the original investment of £287 million (US$462.3 million) for phase one with support from the UK Government’s Regional Growth Fund. The first phase of investment relates to the production of low-carbon 2.0-liter diesel engines for Ford commercial vehicles (CVs) globally. The second phase is for low-carbon, 2.0-liter diesel engines for passenger cars.

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The second-phase investment brings the total investment in the program to in excess of £475 million (US$765 million). Ford, which in 2012 had been roundly criticized by the press, unions and government for shutting down vehicle production in the UK, said the total investment underlines its commitment to on-going high-tech engine manufacture at Dagenham.

This all-new range of low carbon 2.0-liter diesel engines for cars and CVs was designed and developed at Ford Dagenham and at the Ford Dunton Technical Centre in Essex.

The first phase-one engines will come off the line towards the end of next year. Production capacity will be up to 350,000 units per year—one engine produced every 30 seconds—and will be installed in Ford commercial vehicles from 2016.

The new 2.0 liter advanced diesel engine will deliver significantly lower NO_x emissions, satisfying the air quality requirements of the London Mayor’s proposed Ultra Low Emission Zone (ULEZ).

The second phase of engine production is scheduled to start in 2017, with the first installation in Ford cars planned for 2018. The added capacity of up to 150,000 units for this phase brings the total annual capacity for the all-new engine range to up to half a million units.

I welcome Ford’s commitment to Dagenham and the UK, which is a vote of confidence in our long-term economic plan to back business, create more jobs and secure a brighter future for Britain. We are backing our automotive sector so that it continues to thrive and this investment, supported by £8.9 million from Government’s Regional Growth Fund, will create more jobs that mean financial security and economic piece of mind for more hardworking families.

This latest diesel engine program at Ford Dagenham is part of a £1.5-billion (US$2.4-billion) investment by Ford in low-carbon and environmentally friendly engine and vehicle technology over five years.

Ford produces engines at two locations in the UK: gasoline engines from Ford Bridgend in Wales and diesel engines at Ford Dagenham. Total production from the two plants exceeded 1.5 million engines in 2013.