Cosworth, With Racing Heritage, Moves More Into Mainstream Cars

Cosworth, once known for making engines for auto racing, has spent the last decade trying to diversify into mainstream cars, at least to a point.

For example, the U.K.-based company helped develop the performance data recorder for the 2015 Chevrolet Corvette. The system allows users to record drives and analyze performance data and share the video on social media. Cosworth also developed the engine for Jaguar's C-X75 prototype super car, which can go from 0 to 100 mph in less than six seconds.

Privately held Cosworth is building a new manufacturing plant because of its contracts with mainstream automakers. CEO Hal Reisiger said in an interview the factory will begin production in November.

Cosworth was owned by Ford Motor from 1998 to 2004 when the company fielded a Formula 1 racing team. Ford divested Cosworth when it exited F-1 after deciding it couldn't afford participation in the expensive, high-technology racing series. The sale also spurred Cosworth, which has about $100 million in annual sales, to diversify beyond racing. The company has about 350 employees and will add another 70 with the new factory.

Reisiger says Cosworth still is interested in racing. The company formerly was involved with IndyCar racing in the U.S. "We've had discussions of getting back into IndyCars" by joining forces with an automaker, he said. That would be similar to the Chevrolet IndyCar engine, developed by General Motors  and Ilmor Engineering. Cosworth's target for getting back to IndyCars is 2016, the CEO said.

More broadly, Reisiger said racing is "regaining its importance" to the mainstream auto industry. Automakers are under regulatory pressure to improve fuel efficiency and cutting emissions. In racing, engineers look for new ways to stretch fuel. "That plays to our strength," the Cosworth CEO said.