Whilst traditional automotive manufacturing regions continue to face tremendous competitive pressures new opportunities are emerging with strong govemmental support to encourage the manufacture and adoption of low carbon vehicles (LCV). This paper examines such opportunities in the West Midlands region of the UK, where the automotive 'cluster' remains one of the largest in the coimtry and where failure to adapt to changing markets could prove economically and socially damaging. It suggests that the Region should build on its strengths at the upper end of the technology spectrum and establish itself as a leader in the area of LCV technologies. In doing so it is recognised that a co-ordinated and holistic approach is required, involving multiple layers of govemment, backed up by a strong and supportive policy framework. As such, the abolition of regional govemment in England presents a serious challenge. It remains to be seen whether the new Local Enterprise Partnerships in the Region can overcome constraints of funding, capacity, co-ordination and remit to fill the void left by the aboUtion of the Regional Development Agency. Failure to do so would mean that the economic development opportunities presented by low carbon vehicles may not be fully realised.