After months of speculation, Saab and BMW have signed an engine purchasing agreement. Full details inside

After months of speculation, Saab has signed an engine purchasing agreement with BMW.

While details are limited, Saab will receive a turbocharged 1.6-liter four-cylinder petrol engine with start/stop technology. It will be used in an upcoming vehicle, reportedly the next-generation 9-3, starting in 2012.

According to Ian Robertson, a member of BMW's Board of Management, "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."

His remarks were echoed by Jan Åke Jonsson, the CEO of Saab, who stated "It gives me great pleasure to confirm this exciting new relationship. 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."

As we reported yesterday, Saab is still trying to purchase BMW diesel engines and a MINI platform. While neither company discussed the issue directly, Victor Muller commented "both parties are open to explore further opportunities as part of this relationship in the future."