BMW will officially supply Saab with four-cylinder petrol engines from 2012.

A contract was signed today (September 29) by Ian Robertson of BMW's board of management and JanAke Jonsson, CEO of Saab.

We know that the engines will feature the latest fuel and energy saving technology including start-stop systems and that they'll be fitted to a new Saab model series.

The companies have remained tight-lipped about the financial details or exactly how many engines are changing hands.

"We are continuing to expand our powertrain system sales business worldwide as planned as part of our Strategy Number ONE. Today's agreement marks another important milestone along this route," said Robertson.

Jonsson added: "BMW Group'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."

Jack Carfrae - 29 Sep 2010