BMW to provide new Saab engines
- Published
It may say Saab, but it will be a BMW under the bonnet
BMW and Saab-owner Spyker have announced that the German firm will provide engines for the Swedish cars from 2012 onwards.
The four-cylinder 1.6-litre turbo-charged petrol engines will be adapted for Saab's next generation of cars.
Saab chairman Victor Muller said the two firms "are open to explore further opportunities... in the future."
The loss-making Swedish carmaker was sold to Spyker by General Motors (GM) during its bankruptcy in February.
"BMW's engines and their fuel savings innovations are widely regarded as a benchmark in the premium segment," said Saab chief executive Jan Ake Jonsson.
Saab sold only 10,500 vehicles in the first half of this year, down by more than half from 24,300 a year earlier.
The Swedish company never made a profit during its 20 years of ownership by GM.
Spyker aims to sell 120,000 cars per year in the long term.
Peugeot deal
In separate news, Peugeot-Citroen and Mitsubishi Motors have announced a new partnership to develop electric light vehicles from 2012.
The new cars will be based on Peugeot's Partner and Citroen's Berlingo vans.