Mercedes-Benz has unveiled a £20 million investment that will create more than 150 high-skilled jobs across Northamptonshire and Oxfordshire, offering a significant boost to the UK’s electric vehicle sector. The funding will also safeguard 34 existing positions in the region.
Half of the investment, around £10 million, will be provided by the UK Government through the Advanced Propulsion Center, which supports innovation in low-emission and electric vehicle technologies. The project will be led by Mercedes-AMG High Performance Powertrains, the division known for developing engines for Formula 1.
The engineering team will now apply its racing expertise to develop a new generation of electric drive systems for high-performance road vehicles.
Ministers said the decision reflects growing confidence in the UK’s automotive industry and will help reinforce domestic supply chains for electric vehicles. They also highlighted the move as evidence of Britain’s continued strength in automotive engineering and innovation.
The announcement coincides with the arrival of German President Frank-Walter Steinmeier for a three-day state visit. This afternoon, he will join Prime Minister Keir Starmer and Chancellor Rachel Reeves in Downing Street for a business roundtable with senior executives from both countries.
Officials say the event will underscore the deepening partnership between the UK and Germany, following the recently signed Kensington Treaty aimed at strengthening cooperation on defence, trade, and economic growth.
Germany remains the UK’s most significant European trading partner, with bilateral trade worth around £150 billion annually and supporting over one million jobs across both economies.
Mercedes-Benz’s new investment also follows last week’s Budget, which included several measures designed to attract global companies. These included a three-year stamp duty exemption for firms choosing to list on UK stock markets and maintaining the UK’s corporation tax at the lowest level in the G7.
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