Saab and BMW have made an agreement for the supply of engines to be used in the next-generation of Saab vehicles.

Under the purchase, supply and development agreement, BMW will supply Saab with 4-cylinder 1.6 litre turbocharged petrol engines from 2012. The engines will be adapted to meet Saab’s specific requirements.

The contract was signed on September 29 in Trollhattan, Sweden. Participating in the signing were Saab Automobile CEO Jan Ake Jonsson, Saab Automobile chairman Victor Muller and Ian Robertson, member of the board of management of BMW AG, responsible for sales and marketing.

Jonsson said: “BMW’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.”

Muller said the agreement was a major step forward for Saab on its journey to becoming a profitable independent premium carmaker.

He said: “In line with Saab’s strategy, we will continue to capitalise on our own engineering expertise while also working with the very best partners. This relationship will enable both parties to explore further opportunities in the future.”