The British government together with 27 firms from the auto industry will finance a research center amounting to US $1.5 billion (GBP 1 billion), which will build low-carbon technologies and safeguard the occupation of around 30,000 individuals working in the car engine supply chain of the country.
Among those included in the bid are component maker GKN, oil major BP and Indian carmaker Tata Motors. The companies will be providing funding in the next decade to an Advanced Propulsion Centre. Bosch, BMW Group, Nissan and Caterpillar are also backing the investment, a Reuters report stated.
During the past sixteen months, car sales in the UK have risen. Experts see this as a rare occurrence for Europe's motor industry, which has been hit by recession.
Additionally, British government seeks to convince more top carmakers in the world including automotive suppliers to headquarter their operations in Britain.
In a statement, Business Secretary Vince Cable said that "the UK automotive sector has been incredibly successful in recent times, with billions of pounds of investment and new jobs."
"With the next generation of vehicles set to be powered by radically different technologies we need to maintain this momentum and act now," Cable added.
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