The scheme targets young offenders and disengaged young people in the south of the county and will combine the building of a kart from the engine up with advice on cooking, drugs, leaving school and other life skills.
Nick Birt, senior youth worker at Somerset Youth Offending Team, said: "We're looking at the project being a foundation for a motor mechanics or engineering course.
"It will help get some of the young people back into a routine or college.
The work will also seek to address crime reduction and social exclusion."
Teenagers will be referred by the youth offending team, Connexions and the local youth service. Somerset Crime and Disorder Partnership provided 63,000 for the scheme and local charity The Wooden Spoon gave 25,000.
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