Today the BMW Group have confirmed the rumors and below is the press release.

The BMW Group has received a major order from Swedish automobile manufacturer Saab to provide petrol engines. The contract for delivery of the engines as of 2012 was signed on Wednesday by Ian Robertson, member of the Board of Management of BMW AG, responsible for Sales and Marketing, and the CEO of Saab Automobile, Jan Åke Jonsson, in Trollhättan in Sweden. The 4-cylinder engine with latest fuel savings technologies is intended for a new Saab model series. Both companies have agreed not to disclose any financial or contract volume details.
 
“We are continuing to expand our powertrain system sales business worldwide as planned as part of our Strategy Number ONE. Today’s agreement marks another important milestone along this route,” explained Robertson. “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,” Robertson added.
 
“It gives me great pleasure to confirm this exciting new relationship. BMW Group’s engines and their fuel savings innovations are widely regarded as a benchmark in the premium segment. We look forward to integrating this technology into our next-generation vehicles in a true Saab way,” noted Jonsson.
 
The engine, which will feature Start-Stop and other measures designed to reduce emissions and fuel consumption, will be assembled at the BMW Group’s Hams Hall engine plant in the UK.
 
Engine development and construction are among the BMW Group’s core competences and have shaped the company since it was founded in 1916. Today, the BMW Group has a strong network with a total of 24 production facilities in 13 countries, including three engine plants in Steyr, Austria; Munich, Germany; and Hams Hall, UK.