BMW will supply Saab Automobiles with engines for its vehicles from 2012 onwards. Ian Robertson, member of the Board of Management of BMW AG, and CEO of Saab Automobile, JanÅke Jonsson, signed the agreement on Wednesday in Trollhättan.

BMW will be supplying the Swedish brand with four cylinder 1.6 litre turbocharged gasoline engines which will be modified to meet Saab’s requirements. The engine, which is most probably the 1.6 Prince found in the Cooper S, will be used in the upcoming 9-3.

Saab CEO Jan Åke Jonsson said that he looks forward to integrating the technology from both companies into the next-generation vehicles in a true Saab way.

“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. Both parties are open to explore further opportunities as part of this relationship in the future,” said Victor Muller, Chairman of Saab Automobile.

There was no mention about specific numbers or the possibility of BMW supplying Saab with a platform for their 9-2 model, but they did hint towards more tie-ups in the near future. All we have to do is keep our ears to the ground.