BMW has received "a major order" from Spyker-owned Saab for petrol engines with deliveries starting in 2012. Saab earlier this week said it was "holding talks with BMW for a possible supply relationship agreement".

The contract was signed on Wednesday (29 September, 2010) by BMW sales and marketing chief Ian Robertson and Saab Automobile CEO Jan Åke Jonsson, in Trollhättan, Sweden. The pair said that a "1.6 four cylinder turbocharged gasoline engine with latest fuel savings technologies is intended for a new Saab model series" but neither company would disclose financial or contract volume details.

BMW GB said: "BMW Group will be supplying Saab with all its four cylinder engines from 2012."

“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 in a statement. “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.”

“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,” said Jonsson.

The engine, with start-stop and other measures designed to reduce emissions and fuel consumption, will be assembled at BMW’s Hams Hall engine plant in the UK.

BMW also has engine plants in Steyr, Austria and Munich, Germany. Previous engine supply deals have included I6 diesels to Opel for the Omega line and Land Rover for the Range Rover.