The UK automotive industry is set to receive £1bn worth of funding to help it develop an ‘engine of the future’.
The Financial Times reports that the funding will be part of 10-year scheme funded by both the government and manufacturers. Each party will contribute £500m to the plan.
27 car companies, including British car firms Jaguar, McLaren, and Land Rover, and German producer BMW will be part of the scheme.
The announcement is part of a broader automotive strategy released by Vince Cable, business secretary, on Friday. The aim of the strategy is to keep the UK car industry, which has rebounded in the past five years, globally competitive and at the forefront of new technological developments.
“The UK automotive sector has been incredibly successful in recent times, with billions of pounds of investment and new jobs,” Cable said.
“With the next generation of vehicles set to be powered by radically different technologies, we need to maintain this momentum and act now. Our industrial strategy will ensure we keep on working together to make our automotive industry a world leader.”
The British car manufacturing sector was near collapse five years ago. Investors believe that, despite its current strength, more needs to be done to keep the industry at the forefront of latest technologies.
Motor vehicle industry revenue grew by three percent in the last year, with the annual sales figure pegged at £59.3 billion.
On top of that, UK-based vehicle manufacturing grew even more. There were eight percent more vehicles produced in the UK in the past 12 months than in the 12 months before.
The news of this investment comes at a time when the Australian car manufacturing industry is at a crossroads and there is debate surrounding the continuation of the struggling industry.