As the Ryton factory shut its doors for the final time yesterday, business and political leaders united to ensure the site will be retained for employment.
Although the Peugeot factory never had planning permission for industrial use because it was built in 1939 before the laws came into effect, local authority officials said they would favour applications to use its 140 acres to generate jobs.
Housing or retail interests are likely to be denied.
Commercial property agents Gerald Eve has already been engaged by Peugeot to sell the site, which is expected to fetch up to #50 million.
Ken Taylor, leader of Coventry Council, said he would like to see hi-tech manufacturing at Ryton.
Although the factory, which is closing down this week, fell just outside Coventry's south eastern boundary, he would be consulted on any decision.
He was supported by the head of planning in Rugby Borough Council which is the planning authority and Brian Woods-Scawen, the chairman of the Peugeot Partnership set up to deal with the aftermath of the closure.
Coun Taylor (Con Earlsdon) said: "It is a very large site and it would be attractive to a large employer.
"Ideally it would be manufacturing in one form or another, but we understand that high value, high technology manufacturing is not always about creating lots of jobs. I would prefer it to be some sort of high value employer, something which has a long term future, something technology based."
Ryton is one of several sites on the fringes of Coventry which the city is looking to create opportunities for companies and employment in the coming years.
Also within the boundaries of Rugby Borough Council is the former Rolls Royce site at Ansty, which is earmarked for a medical technology centre, while Indian conglomerate Tata is in talks about setting up a research and development site there.
Within Coventry's boundaries there already are two former manufacturing sites awaiting redevelopment. Agco, the former Massey Ferguson plant, in Banner Lane, could
become home to a business park for niche vehicle manufacturers, while there is also the former Jaguar factory at Browns Lane.
Coun Taylor said: "We have the skills in Coventry; there are a large number of highly skilled people in the city and we need to retain their skills.
"In order to do that we have to provide them with employment. We've lost more than 2,000 jobs with the closure of Ryton, but I would like to see at 50 per cent of those back on site.
"I am determined the site will be employment in some form."
Coun Taylor was supported by Mr Woods-Scawen who said: "Ryton is an excellent location. It virtually has its own motorway with the M45, it is next to the airport and it is very close to the M6 and the M69.
"It is a strategically vital site which we are sure will be massively attractive to private sector investors.
"Many other sites in Coventry can be used for houses, but it would be very damaging to the balance of Coventry if it was not used as an employment site."
Mr Woods-Scawen said he thought the new occupants could be in place with in the next two years.
"I will be very surprised if it is not on the market by 2007. It is a very attractive site, and I think we will begin to see more of the plans emerge next year."
The new occupants could be up and running by 2008.
He added: "There a lot of high value engineering in Warwickshire and Coventry, which builds on the legacy of the past there.
"There is also a lot of demand for research-led activity that links into Coventry and Warwick universities.
"There are many demands for investment around high value engineering and research, and I think Ryton would make an ideal home for something like that.
"Maybe there could even be some jobs for some former Peugeot workers at Ryton."
James Russell, head of planning and strategic transportation at Coventry City Council, said the three different authorities – Rugby, Warwick and Coventry – would work closely together.
He said: "We are all singing from the same hymn sheet. The regional policy is that it will remain a major employment site for Coventry, Warwickshire and Rugby.
"Ryton doesn't have planning permission for industrial use because it was built before the regulations came into force.
"But employment is the established use and you would need planning permission for anything else, which would be very difficult to get."
Coventry is due to have another 9,000 houses built in the area between now and 2016 as part of the growth agenda, but Mr Russell was adamant this would not mean Ryton would be turned into a housing estate.
"Coventry has a growth agenda and we are absolutely sure we will need additional employment in and round the city.
"This is an ideal site, right on the edge of the city where there has always been employment. We need to have a balance of housing and jobs. We don't want to become a dormitory town."
Ian Davies, director of technical services, at Rugby Borough Council, said the real decisions would be made after Peugeot had completed decommissioning the site in the New Year.
The process, which will involve removing machinery for use at other factories as well as decontaminating the site of paint and solvents, is expected to take three months.
"This is a specialised market, I don't expect they will put up boards to see who will buy it," he said.
"They will be putting together an information pack to see who is interested in buying it, they will be targeting some pretty big players, who are in a position to buy a 140 acre former car factory."
Mr Davies said this could take a while, with planning applications expected to take much of next year before the site was redeveloped in 2008.
He said: "We would like to see employment there; at its height there were about 5,000 people working there, although how realistic it is to get that many again I don't know.
"We want something that will create a substantial number of jobs. None of us see this becoming a distribution site. We can and do have the ability to prevent that happening.
"It has got to be employment and it has to be substantial."
Mr Davies said there had been some "bizarre wild rumours" about the use of the site, including it being used for an extension to Coventry Airport.
He said: "There are several fields, a main road and a river in the way, so that stops that. But although we are not trying to pretend the closure is good news, we have to look forward. The site has huge potential for the future."
