“This is a major step for Saab on our road to becoming a profitable independent premium car maker”, Victor Muller said.

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• Saab to team up with BMW
• Spyker on course for a 2012 profit

Saab Automobile and BMW announced an agreement for the supply of engines to be
used in next-generation Saab vehicles, the Swedish carmaker’s owner Spyker said in a statement. The contract was signed on Wednesday in Trollhättan, Sweden.

“This is a major step for Saab on our road to becoming a profitable independent premium car maker. In line with our strategy, we will continue to capitalize on our own engineering expertise while also working with the very best partners", Victor Muller, Chairman of Saab Automobile and founder of Spyker, said.

"Both parties are open to explore further opportunities as part of this relationship in the future”, he added.

Under the agreement, the German carmaker will supply Saab with 4-cylinder 1.6 liter turbocharged gasoline engines from 2012.

“It gives me great pleasure to confirm this exciting new relationship. 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”, Saab's CEO Jan Åke Jonsson said.

Spyker Cars bought Saab in February from General Motors for $400 million.

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