The UK automotive industry will receive a £1 billion investment to help develop an ‘engine for the future.’ The automotive industry will invest £500 million in research and development aimed at creating an engine development industry in Britain. The investment will be matched by another £500 million in government funding.
The project, which aims to produce an engine in Britain that will be used in vehicles around the world, is expected to create over 30,000 local jobs. 27 car companies are participating in the investment scheme, including British car firms Jaguar, McLaren, and Land Rover, and German automotive production giant BMW.
The investment, which is part of a larger strategy to improve UK automotive output, was announced by business secretary Vince Cable. Automotive industry insiders are reportedly excited about the new investment, believing that it could be a long-term opportunity to keep Britain’s automotive industry in a strong position.
British automotive production is currently at a high level, having rebounded from a near-disaster over the past five years. Despite its current performance, investors in the £1 billion scheme believe that the investment is important for keeping Britain at the top of the automotive engineering world for the coming decades.
Motor vehicle industry revenue increased by three percent in the last year, with the annual sales figure pegged at £59.3 billion. UK-based vehicle manufacturing grew at an even greater rate, with eight percent more vehicles built in the UK in the past 12 months than in the twelve months before.
80 percent of UK vehicles were exported to be sold overseas, indicating a return to form for British exporters. Unlike other investments in automotive manufacturing, which have been aimed at optimising design and production, the new £1 billion is aimed solely at growing the UK’s focus on alternative fuel engines.
