The government is contributing £35 million towards the creation of a new auto industry park.
The 59 acre site near Coventry, designated the Whitley South Infrastructure Project, will start to house automotive companies from the beginning of 2017.
3,000 engineering and manufacturing jobs are expected to be created at the site which is close to Jaguar Land Rover HQ and engineering centre.
The government investment will improve transport links from the automotive park to the A45 and link the automotive park to the Jaguar Land Rover site.
This development builds on the success of the auto industry in the West Midlands and car component manufacturers in Sandwell and is expected to stimulate further growth in this sector creating more jobs and maintaining existing job security.