The Crewe-based luxury car maker Bentley is leading a project that hopes to save hundreds of jobs.
It will work with its suppliers in a £9m scheme to boost production of parts for luxury cars.
Part of the money behind the project is coming from a Government-backed initiative aimed at safeguarding supply chains across a variety of industries.
Known as the 'Niche Luxury Vehicle Cluster Supplier Capacity Building Programme', Bentley's project is expected to create almost 400 direct jobs and safeguard more than 150 other roles.
It will be financed by £2m from the Department for Business's Advanced Manufacturing Supply Chain Initiative. The other £7m will come from private partners.
Deputy Prime Minister Nick Clegg said: “This is a welcome boost to jobs and growth in the North West. This investment will secure Britain’s future as a world leader in both traditional and new technologies.”