Up to 300 jobs could be created in Wellesbourne after Jaguar Land Rover and Warwick Manufacturing Group announced it would be developing driverless cars there.
The University of Warwick's site in the village will be used to for JLR's Smart City Mobility Centre - which will research and develop ways to build driverless cars for a future without congestion, emissions and road accidents.
The partnership combines the research expertise of WMG with JLR's engineering ability and is expected to bring around 300 jobs to the area.
Further jobs will be created at the University of Warwick's campus where driverless vehicles will be tested.
The announcement was made at the Coventry and Warwickshire Automotive Dinner on Monday November 12 by WMG's Chairman, Professor Lord Bhattacharyya.
Cllr Peter Butlin, Warwickshire County Council's deputy leader, was present at the announcement. He said: "Everyone in Warwickshire should delight in this wonderful news.
"It will give a huge boost to the local economy and employment opportunities. It is further proof that Warwickshire is on the map for major high tech companies looking to develop their businesses.
"The local universities provide a wealth of talent. We are working hard to align business requirement with a workforce that has the skills to match.
"It is also very encouraging for Warwickshire that such high-profile, high-tech enterprises are starting up, or expanding, here. Everybody at Warwickshire County Council wishes the new centre at Wellesbourne the very best with its work."