Saab engines order goes to BMW factory

The West Midlands car industry was set for a boost today after Saab placed "a major order" for engines with the BMW Group.

The engines, which will feature measures designed to reduce emissions and fuel consumption, will be built at the firm's Hams Hall plant near Birmingham.

They are expected to be used to power a new version of the Saab 9-3 which is due for launch in 2012.

Neither company is disclosing financial or contract volume details but have confirmed that the order is substantial.

The engines will be four cylinder 1.6 litre turbo-charged petrol units with further power plants possible, too.

BMW sales and marketing board member Ian Robertson said: "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.

Hams Hall, situated at Coleshill, employs around 1,000 workers producing four cylinder engines for a range of Mini and BMW vehicles.

The Swedish firm was rescued from oblivion earlier this year by Dutch supercar manufacturer Spyker.