A new Formula 1 team could be set up in Warwickshire following a £100 million investment by technical engineering firm Prodrive.
Up to 800 new jobs could also be created at a site near Kenilworth which aims to become a world leading research and development centre and the hub of UK automotive technology industry.
Prodrive has lodged plans with Warwick District Council to develop its 200 acres location, which currently employs 200 people working on prototypes for car makers including Ford, Aston Martin and Land Rover.
The ground, which would be renamed the Fulcrum, would see new offices, design studios, research and development laboratories and a conference centre.
Plans are also afoot for a new Prodrive Formula 1 team, with a new building being constructed to house staff who will design and manufacture the race cars.
David Richards, chairman of Prodrive, said: "This is the heartland of the automotive and motorsport industries, with a great existing use as a proving ground.
"We will rebrand this site as the Fulcrum because it will become the fulcrum for industry in this region."
If approved, the site, which is already home to Marcos and TRW as well as Prodrive, would see construction begin in 2007 with a building called the Catalyst.
The zinc clad building would include a centre of excellence for advanced engineering and an adjoining conference centre with a seating capacity of nearly 250 people.
Mr Richards added: "The British automotive and motorsport industries are coming under increasing pressure from competition overseas.
"By developing the Fulcrum we can provide high level technical skills and resources which will help the region's vehicle manufacturers and motorsport teams succeed and at the same time, encourage more inward investment to the West Midlands.
"It is unlikely the UK auto industry can compete in the long term with high volume production in the way that China and the Far East is going in the future. But in this country we still have some of the most creative and innovative engineers in the world.
"Rather than losing these people we need to redirect them into productive areas."
Prodrive said it was looking for other companies seeking to locate at the site, also in the automotive research and development sector, with some already expressing an interest.
Meanwhile a second building, the site of the former Lucas jet engine research, would be turned into an F1 site.
Mr Richards said: "For some years Prodrive has been looking at having its own Formula 1 team. But the longest lead times to do this would be building the facilities. In the event of us going into Formula 1, this building would mean we have the facilities in place.
"This is a sign of our confidence in motorsport and this area. The incentives to house a Formula 1 team in Dubai or Asia are enormous, but we firmly believe this is our future.
"It will create high end employment for a skilled workforce."
The team depends on current negotiations by Formula 1 intended to make the sport more affordable.
Mr Richards said: "Although we are currently a company with a 1,000 people with a turnover of £120 million, we are a minnow." ..SUPL: