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UPDATE 2-Saab gets access to BMW technology -report

Published 09/27/2010, 03:09 AM

* Saab and BMW to announce deal on Wednesday - NOS

* Saab owner Spyker, BMW not available to comment

* Spyker shares up 7.0 percent, BMW down 0.7 percent

(Adds detail, background)

AMSTERDAM, Sept 27 (Reuters) - Car maker Saab will get access to BMW's technology and parts, Dutch public broadcaster NOS said, a move that could help underfunded Saab owner Spyker push the Swedish brand back into profitability.

Saab, which was bought early this year by Dutch luxury car maker Spyker from U.S.-based General Motors, and BMW are scheduled to sign the deal on Wednesday, NOS said, citing sources at the two car makers.

Saab wants to focus on building a smaller car using BMW technology, NOS said on Monday.

Spyker could not comment immediately, while BMW was not immediately available to comment.

A deal would help Saab owner Spyker obtain new technology as the Dutch car maker, which has never made a profit, has a negative shareholder's equity value of 126 million euros ($168 million) as liabilities surpassed assets in June.

Spyker has 280 million euros of net cash and undrawn credit of 266 million euros that would carry the company through to its 2012 profitability target for Saab, the company said last month.

Car makers globally are keen on partnerships to develop cars or exchange technology to save costs.

France's Renault-Nissan Alliance and India's Bajaj Auto signed a deal in July to produce an ultra low-cost car, following a deal of Mitsubishi Motors and PSA Peugeot Citroen to develop electric vehicle powertrains.

In June, a Swedish daily reported that Saab was in talks with BMW to use its engines and transmissions in a new version of the 9-2 model.

Spyker Cars Chief Executive later told Reuters in June that he was in talks with several potential partners and that a decision could be expected by year-end.

Spyker shares have lost almost a third of their value since Spyker bought Saab in February and opened up 7.0 percent at 2.57 euros on Monday. BMW shares were down 0.7 percent at 50.0 euros. (Reporting by Gilbert Kreijger and Maria Sheahan; Editing by Mike Nesbit) ($1=.7494 euros)

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