Ford is investing £1.5 billion in all four of its UK facilities over the next five years, to make the brand more eco-friendly, after it secured a loan guarantee of £360 million from the government.

Business secretary Lord Mandelson announced the government would provide Ford with the loan in a bid to aid the manufacturer’s £450 million application to the European Investment Bank.

Support and funding from the UK government should boost Ford’s chances of having its loan approved by the bank too.

Ford’s research and development centre in Essex is the country’s largest automotive engineering facility and will be responsible for developing new low-carbon technologies for the car maker, along with its Dagenham plant.

Fiesta and Focus ECOnetic models have already been produced by the brand, with diesel engines in the cars producing carbon emissions as low as 98g/km.

By 2012 all new cars produced in the European Union (EU) must emit less than 120g/km of CO2.

In order to achieve this goal, manufacturers can use a combination of improved vehicle technology coupled with the use of biofuels.ADNFCR-2490-ID-19677431-ADNFCR

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