Carmaker Saab will be getting BMW’s technology and parts. This would help underfunded Saab owner Spyker get back into profitability. Saab and BMW are scheduled to sign the agreement on Wednesday, Dutch public broadcaster NOS said. Saab was earlier this year bought by Dutch luxury car maker Spyker from U.S.-based General Motors. NOS also mentioned that Saab wants to focus on building a smaller car using BMW technology.
This deal would help Saab owner Spyker get new technology. Spyker has never made a profit and has a negative shareholder's equity value of 126 million Euros ($168 million) as liabilities surpassed assets in June.
Technology exchange has become the latest formula for saving costs. France’s Renault-Nissan Alliance and India’s Bajaj Auto signed a deal in July to manufacture a small car, which was followed by a deal of Mitsubishi Motors and PSA Peugeot Citroen to develop electric vehicle powertrains.
In June this year, a Swedish daily reported that Saab was trying to get BMW to share its engines and transmissions for its new version of the 9-2 model.