Trollhättan, Sweden – BMW will supply Saab Automobile with 1.6-litre turbocharged four-cylinder gasoline engines under a new agreement between the automakers, starting in 2012. The engines will be adapted to meet Saab’s specific requirements and will be used in next-generation Saab vehicles.

The contract was signed on Wednesday at Saab’s headquarters in Sweden.

“This is a major step for Saab on our road to becoming a profitable independent premium carmaker,” said Victor Muller, chairman of Saab Automobile. “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.”

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