Coventry is set to become home to a new state-of-the-art car research centre with construction work due to begin in September 2014.

The new £100 million National Automotive Innovation Campus (NAIC) has been sealed following the completion of Heads of Terms deal for construction between the University of Warwick, Warwick Manufacturing Group (WMG) and Jaguar Land Rover. Officials explained that the NAIC will be a unique research and development facility for the UK's automotive sector. The agreement between the organisation is designed to "foster collaboration, cohesion and cross-fertilisation of knowledge".

NAIC is expected to become a focus for the research capabilities of the automotive sector and will bring together the expertise of business leaders in the likes of universities, supply chain companies and small and medium-sized enterprises (SMEs). The plans will see over 900 staff from WMG, Jaguar Land Rover, Tata Motors European Technology Centre and other partners come together to create breakthrough products, processes and services.

Dr Ralf Speth, Jaguar Land Rover, chief executive officer, said: "I am delighted that we have finalised the NAIC agreement and continuing our collaborative partnership with WMG and the University of Warwick.

"NAIC offers the opportunity for Jaguar Land Rover to develop its research and advanced engineering operations in one centre with academic and industry experts working together to develop and innovate internationally competitive products of the future."

The structure itself will spread over 30,000 sq m and will include a host of facilities ideal for the automotive industry. Officials stated that engineering, labs and powertrain utilities, virtual reality areas, design studio, demonstration and education facilities. The decision to set up in Coventry has been linked with Jaguar Land Rover's influence in the city after it relocated to the Midlands in 2011.

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