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Prodrive is to expand the 120-strong workforce at its Milton Keynes-based components manufacturing business with 40 new jobs.

Prodrive is to relocate the Banbury headquarters of its motorsport engineering business and up to 450 staff to a site on Southam Road, and 100 new jobs will be created over the next year.

Prodrive is looking to recruit a further 30 automotive technicians at its motorsports business in Kenilworth, in order to start producing a limited-edition luxury car.

Prodrive has secured planning permission from Warwick District Council for the £100m expansion of its motorsport site near Balsall Common, including new offices, design studios, research laboratories and a conference centre.

Prodrive is looking to set up a new motorsport factory and research centre in Kenilworth, and the 200-acre site could eventually house a new Formula One team.

Prodrive is to acquire Tickford for undisclosed terms, in order to create an enlarged automotive design business with 500 staff and turnover of more than £100m.

Prodrive is to set up a new company to promote a new World Rally Championship designed to rival Formula One, in a move supported by the leading car manufacturers.

Prodrive, the Banbury-based motor sport group, is to set up a test track and engineering centre near Warwick.