Saab Seals Engine Deal with BMW, gets 4 Cylinder Turbo Units from 2012

The BMW Group and Saab-owner Spyker Cars N.V. have come to an agreement for the use of the German automaker's petrol engines in Saab's vehicles from 2012 onwards. The long-rumored deal, which will ultimately help Saab further reduce its reliance on previous owner General Motors, currently the firm's only supplier of gasoline powerplants, was signed on Wednesday by Ian Robertson, member of the Board of Management of BMW AG, and the CEO of Saab Automobile, JanÅke Jonsson, in Trollhättan in Sweden.

Under the agreement, BMW will supply Saab with 4-cylinder 1.6 liter turbocharged petrol engines, which will incorporate the Bavarian automaker's fuel-saving and emissions -cutting stop-start and regenerative braking tech. Saab said the engines will be adapted to meet the firm's specific requirements.

"We look forward to integrating this technology into our next-generation vehicles in a true Saab way," said Saab Automobile CEO Jan Åke Jonsson.

Though the two automakers did not go into any other details, it is believed that the petrol engines will be the same as the ones used in the MINI range, with at least one of them to be assembled at the BMW Group's Hams Hall engine plant in the UK. The 1.6-liter Turbo will be used on the next 9-3 (expected in 2012), as well as on the new 9-5 sedan.

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."

Saab's chairman Victor Muller noted that both parties are open "to explore further opportunities in the future".

The two companies did not disclose any financial or contract volume details on the engine deal.