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Ford has announced it will invest an additional 190 million into its Dagenham site where it will produce the all-new 2.0-litre diesel engine for commercial vehicles and cars.

The announcement sees the vehicle manufacturer extending its investment into the programme to 475 million, with the government's Regional Growth Fund providing 8.9 million towards the project.

Ford will develop a low carbon diesel engine that meets the Mayor of London's proposed Ultra-Low Emission Zone target, with the first engines being fitted in vehicles by 2018. Phase one, announced in September, will see the development of low carbon 2.0-litre diesel engines for Ford's commercial vehicles.

Stephen Odell, Ford Executive Vice President for EMEA, said, ''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 the UK as these engines will be exported to markets across the world.''

This diesel engine programme is part of a 1.5 billion investment by Ford in environmentally friendly engine and vehicle technology over the next five years.