Ford is planning to invest £230m in its Halewood plant on Merseyside to make electric car parts, helping safeguard 500 jobs.

Stuart Rowley, president, Ford of Europe said the investment will mean the plant will run for many years longer.

There had been speculation about the future of the Halewood factory complex as Ford moves towards electrifying its vehicles.

Part of the investment will come from the government’s Automotive Transformation Fund.

“We’re really pleased with the support from the UK government,” Mr Rowley told the BBC.

“We’re not disclosing the exact amount, but it was good support for what is a very significant investment in the UK.”

He said the government support was “a part of the decision” to choose to invest in Halewood, “but not the only element”.

Ford’s Halewood plant will begin manufacturing electric power units – which replace the engine and transmission in petrol cars – in 2024.

Ford has said it is committed to the UK, but not all locations have been as fortunate.

Its engine plant in Bridgend closed in September last year, with the loss of 1,700 jobs, after the company described it as “economically unsustainable”.

Ford blamed “changing customer demand and cost” for the closure plans and denied Brexit was a factor.

Ford is not the first manufacturer to receive financial help for electric vehicle production through the fund, set up to encourage investment in electric vehicle manufacturing in the UK.

In July, Nissan announced a major expansion of electric vehicle production at its car plant in Sunderland, which will create 1,650 new jobs.

The Japanese carmaker will build its new-generation all-electric model at the site as part of a £1bn investment that will also support thousands of jobs in the supply chain.

And Nissan’s partner, Envision AESC, will build an electric battery plant.