Ford has been given a 450 million loan to research and produce environmentally friendly engines and technologies.
The money - from the European Investment Bank (EIB) is part of Ford's 1.5 billion engine and vehicle development programme that will be rolled out over the coming five years.
Investment from the loan will include new production facilities for lower-carbon engines in Bridgend, Wales.
The financial package from the EIB is backed by an 80% (360 million) loan guarantee from the UK Government. Ford says the loan will safeguard around 2800 skilled jobs across the UK.
UK business minister Mark Prisk said: 'Ford has an impressive track record and development. Its investment of 1.5 billion over the next five years is a great opportunity to take the lead in developing low-carbon manufacturing.
Ford of Britain chairman Joe Greenwell said: 'This [loan] is a testament to the skills and capabilities of our UK workforce and demonstrates the scale of our commitment to Britain.'