The latest investment marks the second phase of investment in the new engine programme and includes £8.9m (€11.2m) from the Government’s Regional Growth Fund.

This follows the original investment of £287m (€362.3m) for phase one for the production of low carbon 2.0-litre diesel engines for Ford commercial vehicles globally with support from the UK Government’s Regional Growth Fund.

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 and will be installed in Ford commercial vehicles from 2016.

The second phase of engine production is scheduled to start in 2017, with the first installation in Ford cars planned for 2018.  Ford added that the new, low carbon 2.0 litre advanced diesel engine will deliver dramatically lower NOx emissions, satisfying the air quality requirements of the London Mayor’s proposed Ultra Low Emission Zone (ULEZ).

Stephen Odell, Ford executive vice president, Europe, Middle East & Africa, said: ‘Ford is delighted to announce this next phase of investment at Dagenham. The overall investment of over £475 million, supported by the UK Government, underlines Ford’s commitment to the UK. This all-new, state-of-the-art, low carbon diesel engine has not only been designed and developed here it will be manufactured by Ford in the UK too. And it will be great for UK plc as these engines will be exported to markets around the world.’