Manufacturers urged to bid for £200m autonomous vehicle funding

Manufacturers in Birmingham and Coventry involved in the development of autonomous vehicles have been urged to apply for a slice of £200m in funding support.

The cash, announced by Business Secretary Greg Clark, is to help create a cluster of connected and autonomous vehicle (CAV) businesses in the region.

The Government has invested £100m in the fund, which will be match-funded by industry, taking total spend to £200m over five years.

It will use existing CAV testing centres to create the clusters with sites in Coventry and Birmingham, stretching along the M40 to London via Milton Keynes and Oxford.

The move has won the backing of Conservative candidate for West Midlands Mayor, Andy Street.

In his Renewal Plan – effectively his manifesto –  Mr Street has committed to supporting the region to become a global centre for driverless vehicles.

He has already pressed Mr Clark for the need to make the region’s roads available and equipped with the right infrastructure to test the driverless vehicles.

During a visit to the region this week, the Business Secretary discussed with Mr Street how the Government’s Industrial Strategy could further support West Midlands advanced manufacturing companies.

Mr Street said: “I urge advanced engineering companies in Birmingham and Coventry to look at getting involved in this fund which will pave the way for this future industry.

“In my Renewal Plan I emphasise the need to support the industries of the future, business sectors where we have a natural advantage.

“This is exactly what we need to embed this even further in the West Midlands.”

The first phase of the funding will be used to support a range of projects, including the development of controlled test conditions, with the West Midlands bidding to be in the vanguard.

Greg Clark with Andy Street during a factory visit

Greg Clark said: “By 2035 the global market for connected and autonomous vehicle technologies is predicted to be worth £63bn.

“Our investment and collaboration with industry to build on our strengths and create a cluster of excellence that will ensure we are at the forefront of its development and perfectly position to lead and capitalise on this market.

“Andy has left me in no doubt about the importance of this emerging industry to the West Midlands generally and Birmingham and Coventry in particular, so I am urging businesses to get involved at this early stage.”