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Saab deal puts BMW engines under the hood

The Local/AFP · 29 Sep 2010, 09:01

Published: 29 Sep 2010 09:01 GMT+02:00

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Under the terms of the deal, which was signed on Wednesday at Saab headquarters in Trollhättan in western Sweden, BMW will supply Saab with 4-cylinder 1.6 liter turbocharged gasoline engines, to be placed in next-generation Saab vehicles.

"BMW's engines and their fuel savings innovations are widely regarded as a benchmark in the premium segment," Saab Automobile CEO Jan Åke Jonsson said in a statement.

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

The sales and marketing director at BMW Ian Roberston said: "We are delighted to support Saab with our engine expertise.

"Our engines have a clear lead over the competition when it comes to fuel

consumption, emissions and performance."

Victor Muller, head of Dutch automaker Spyker Cars, which rescued Saab from bankruptcy earlier this year, hailed the deal as a “major step” in putting Saab back on the road toward profitability.

He also left the door open for deepening Saab’s relationship with BMW.

"Both parties are open to explore further opportunities as part of this relationship in the future," Muller said in a statement.

Spyker was a small specialist luxury sportscar maker before it bought Saab for close to $400 million dollars from US group General Motors when GM was in severe trouble during the financial crisis. It intends to re-launch the Saab brand.

Spyker, which has never made a profit since being set up in 2000, said in August that Saab had sold 10,500 cars in the first half of 2010, down from 24,300 in the same period in 2009.

Story continues below…

Saab is associated with high-range cars and Spyker has set sales targets of 45,000 cars for 2010, moving up to 80,000 units next year, with plans calling for Saab to turn a profit in 2012 with output of 120,000 cars.

GM owned Saab for 20 years but the Swedish company never made a profit during that period. In 2009, output plunged to 38,756 vehicles from 93,000 in 2008.

The Local/AFP (news@thelocal.se)

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Your comments about this article

09:58 September 29, 2010 by Sam1
now its like a two breed hund
10:43 September 29, 2010 by Great Scott
This deal will not help Saab at all, this is all about bmw gaining access to Saab's safety engineering. People want a Saab not a bmw, if they want a bmw they will buy one. I feel this could be a big mistake and Saab could end up paying the price.
11:12 September 29, 2010 by jack sprat
Good motors, but a step in the wrong direction for Swedish manufacturing.
11:59 September 29, 2010 by tillerman
Swedish manufacturing is dying.
12:29 September 29, 2010 by N18h7m4r3
A car is not just an engine. It will help SAAB to focus on other things to make the car better and most importantly making it cheaper (I hope). Since the volume sold by SAAB is not very high, importing an engine is a wise decision.

I don't understand how can it let BMW gain access to SAAB's safety engineering.

Jan Åke Jonsson is an intelligent man, I know him. He will take SAAB to new heights.
12:31 September 29, 2010 by planethero
lol people want a saab? really, how many people? seems to be bugger all customers outside sweden, they are even a depreciation bomb here too. hejdå €400m.
12:32 September 29, 2010 by gplusa
All that Saab had going for them was the engine. Otherwise it's just a strange looking body shape. I agree that BWM are the winners in this.
15:25 September 29, 2010 by saar
glpusa, what is so good about SAAB engine? I had two SAABs in the past and did not noticed anything to go for when it comes to the engine. Turbo is a different story but engine...
10:36 September 30, 2010 by summo
saab engines have always been underpowered compared to those built by VW, Audi and BMW. It is a positive step, as saab appeared to be unable to compete engine wise, they can now focus on other elements of the cars.
14:56 September 30, 2010 by rumcajs
I think I have to disagree with most of you. SAAB engines ARE GOOD. This is pasted from THEIR OFFICIAL WEBSITES:

SAAB: 1.8t BioPower (1.998 cm3, 129 kW/175 k, 265 Nm při 2.500-3.500 ot./min.)....... I'm in CZ and "k" means HP, so 1.8t = 175hp and cost 650k Kc. That's around 260000 SEK. That's a SAAB 93.

BMW: Max. výkon v kW při ot./min 90 (122)/6,000.... again, I'm in CZ, so a BMW 316 has a 1.6 engine with 122hp and it costs 715000 Kc. That's around 286000 SEK.

..... so you say that it's better to pay 26kSEK more for 53hp less, cool. Veeery clever! That's what SAAB just happened to understand and they will offer crapy things with fancy names and brands like you want cos now people will say things like "ohhh it has a BMW engine and it's cheaper" (even if the other one is better). Stop repeating each other and read so you can have a well based opinion.
17:27 October 1, 2010 by sbjohnson
I don't think a relationship with BMW is going to hurt SAAB any more than the relationship with GM has. Yes BMW get to reduce their engine unit costs and lets hope that BMWs end up with better brakes ;-) but it seems to me that SAAB have a long history of spare parts raids on other manufacturers for obvious reasons in the same way that Aston Martin did (now there was a real mongrel) so this is just another sourcing exercise.

Most people that I know buy cars because of what they look like or the number of cup holders (Yes VW really did ask American focus groups how many cup holders and power sockets the new Bentleys should have) which whilst it seems strange to me (probably why I don't work in marketing) is the reality of car sales.

Most customers haven't a clue what's under the bonnet or how it works but when they hear "BMW engine" will buy it. And lets hope that they do :-)
13:51 December 25, 2010 by tomas R

This is tomas writting from Lithuania! I am fan of SAAB cars (have SAAB 9000'95). I had an road accident with my SAAB on 6 December. I can say that SAAB 9000 is really strong and safety car. No injury to me. I will repair this model. A big thanks to SAAB safety engineers!

But I do not like this idea to use BMW engines in SAAB cars. It is not good way. Maybe BMW motors are good motors but SAAB motors must be better! I said SAAB motors not BMW! People want to buy SAAB not BMW. The engine is the heart of the car! So SAAB is Swedish car and must be Swedish not German!

Merry Christmas and Happy New Year which is coming soon!

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