The Swedish carmaker will develop a new retro model in collaboration with German car giant BMW.

• Spyker's Victor Muller promises new life for Saab
• Saab plans new product line - and to make profit

Trollhättan-based Saab Automobile, the Swedish carmaker acquired by Dutch sports carmaker Spyker from General Motors, is in talks with Germany’s BMW about teaming up with the development of Saab’s new 9-2 model, business daily Dagens Industri said Friday.

The new model is a retro looking car based on the classic Saab 92 from the 1950s.

Saab’s chairman Victor Muller, founder of Spyker, is eager to launch a mini car, an unidentified person with knowledge of the plans told the newspaper. The collaboration would give Saab the right to use BMW’s Mini platform for the new 9-2. Saab would also buy engines and gear boxes from BMW.

BMW may also support Saab with a diesel engine for its new mid-size crossover SUV 9-4X, which Saab plans to start selling in Europe next year.

The German and Swedish car makers will hold a meeting at the end of this month.

The move to create an 1950s look-a-like is another step to help Saab to find back to its routs after 20 years of US ownership.

Last week the Victor Muller promised to secure the future of his recently acquired iconic Swedish brand Saab by giving it back its identity and independence. One of the main problems in the past, Muller said, was that "Saab lost its Saabishness, its Saab-DNA, over the time of GM ownership. And that caused some of its loyal customers to walk away."