Saab and BMW to share engines in new agreement

The deal will start with BMW supplying Saab with a 1.6-litre turbocharged four-cylinder petrol engine that will be reportedly be fitted to the next-generation 9-3 that will go into production from 2012. The unit will incorporate features such as start-stop and regenerative braking technology, and will be reworked to fit Saab's requirements.

Ian Robertson, Executive Sales and Marketing Director of BMW said: "Our engines have a clear lead over the competition when it comes to fuel consumption, emissions and performance and we are delighted to support Saab with our engine expertise."

Jan Åke Jonsson, the CEO of Saab, added, "It gives me great pleasure to confirm this exciting new relationship. BMW Group's engines and their fuel savings innovations are widely regarded as a benchmark in the premium segment. We look forward to integrating this technology into our next-generation vehicles in a true Saab way."

Saab are still in discussions with BMW for further collaborations and purchases, with diesel engines and even platforms said to be among the items that the Scandinavian carmaker are interested in. Saab chairman Victor Muller added that "both parties are open to explore further opportunities as part of this relationship in the future."