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Saab to buy BMW engines

Date: 30 September 2010   |   Author: James Dallas

Saab has placed a major order with BMW to buy petrol engines from the prestige German manufacturer.

Deliveries of the four-cylinder powertrains will begin in 2012 after Ian Robertson, BMW's sales and marketing chief, and JanAke Jonsson, chief executive of Saab, sealed the deal in Trollhattan, Sweden this week.

Since splitting from GM ownership in March this year, Saab has been free to source engines from other manufacturers and the BMW units are intended for use in a new Saab model series.

The two carmakers have agreed not to disclose financial or volume details of the contract.

BMW has an existing deal to supply engines to Peugeot-Citroen, and Robertson said: "We are continuing to expand our powertrain system sales business worldwide as planned as part of our Strategy Number One. Our engines have a clear lead over the competition when it comes to fuel consumption, emissions and performance."

Jonsson said BMW's engines and fuel-saving innovations were the benchmark in the premium segment.

"We look forward to integrating this technology into our next-generation vehicles in a true Saab way," he added.

The engine, which will feature stop/start technology among measures to cut fuel consumption and CO2 emissions, will be assembled at BMW's Hams Hall engine plant in the UK.