BMW, Saab Said to Agree on Engine-Purchasing Deal

Saab Automobile and Bayerische Motoren Werke AG have agreed on a deal that allows the Swedish carmaker to use engines made by BMW, according to a person with direct knowledge of the matter.

Saab will initially purchase BMW engines for the 9-3 model that is scheduled for release in late 2012, said the person, who asked not to be identified before a contract is signed. The carmakers plan to announce the pact in Trollhaettan, Sweden, on Sept. 29, before the Paris Motor Show, the person said.