A £19 million funding package for developing low carbon vehicles will help to secure 10,000 jobs in the Midlands car industry, said Lord Mandelson.
The business secretary launched the initiative for research and development at the University of Warwick, adding that the funding would be channelled through a new low carbon economic area (LCEA) in the region.
He said jobs in the industry would be secured by the funding initiative's plan to change them into green car posts of the future.
"I want to see the Midlands help the UK to lead the global automotive industry in the transition from conventional to low carbon vehicle technologies," said Lord Mandelson.
"The LCEA will send a clear signal to the global market about the Midlands' strengths in advanced automotive engineering," he added.
"The move towards a low carbon economy presents huge opportunities."
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