BMW, Saab may join hands to build new small car

Bayerische Motoren Werke AG and Saab Automobile are discussing sharing parts and technology for a new small car the Swedish automaker wants to build, two people familiar with the matter said.

A possible deal for BMW to provide Saab with engines, gear boxes and the platform for the Mini model is in the early stages and an announcement isn’t imminent, the people said, declining to be identified because the negotiations are private. An agreement will take at least two months, one of them said.

The parts and platform would be used to build a tear-drop shaped car, inspired by the Saab 92 model that was in production between 1949 and 1956.

Saab, which Dutch supercar maker Spyker Cars NV bought from General Motors Co. in February, has spent the last three months restarting production and severing most of its GM ties. Spyker Chief Executive Officer Victor Muller said by phone today Saab is “talking to various parties” about sharing technology as a way to lower costs.

Muller declined to say whether he is in discussions with BMW. BMW also declined to comment. The partnership talks were first reported today in Swedish newspaper Dagens Industri.