The government and automotive industry are investing £500 million each to double the number of jobs created or secured in the automotive supply chain by creating an Advanced Propulsion Centre.
The commitment is backed by 27 companies in the sector, including supply chain companies, and is expected to secure at least 30,000 jobs.
This is part of a strategy for the UK to secure the long term future of the industry over the next 20 to 30 years by growing the UK share of the value chain.
The money will be spent on the APC over the next ten years to research, develop and commercialise the technologies for the vehicles of the future.
Supply chain is a key theme, and government and industry are focussing on working together to grow the UK supply chain and win more overseas business.
Mike Baunton, SMMT Interim Chief Executive said: “In partnership with government, we have now developed a roadmap to secure further long-term growth that is detailed in the strategy document launched today.
“Our goals are to grow vehicle production and component supply with more investment, jobs and advanced technology developed in the UK.”
Richard Hill, Head of Automotive Sector at RBS and member of the Automotive Council, said: “To support the growth of this vital sector RBS has invested in building a dedicated auto team with excellent understanding of the industry and which is developing bespoke funding facilities to meet the needs of each car manufacturer’s supply chain structure.”