Saab Automobile, which is owned by Spyker Cars, is setting up a venture to develop transmissions for the auto industry with the Swedish government. Saab and Fouriertransform AB, the Swedish government's venture-capital firm, will employ 50 engineers from Saab's powertrain division. The venture, which starts in 2011, will develop transmission systems for Saab and other auto makers.

"This step, together with other initiatives, will drive down our break-even point and improve operational efficiency as we work towards becoming a profitable, independent company," Saab Chief Executive Officer Jan-Aake Jonsson said in the statement.

Saab aims to sell 120,000 cars globally by 2012. This year's target was only 30,000 to 35,000 cars.

The new company will be called VICURA, based in Saab's hometown of Trollhaettan. Saab currently buys its transmission from General Motors (its former owner) and Aisin Seiko Co.

Fouriertransform received $440 million (USD) from the Swedish government in 2009, in order to revitalize the country's auto industry.

"For Sweden and the Swedish automotive industry as a whole, it is vital to maintain and further develop high competence" in the field of transmission development, Fouriertransform CEO Per Nordberg said in the statement. "That is exactly what these skilled former Saab engineers will offer."

Check out what Saab has to offer you in America today at Bay Automotive - 6970 North Military Highway, Norfolk, Virginia 23518.

SOURCE: http://www.bloomberg.com/news/2010-12-22/saab-swedish-venture-capital-firm-said-to-start-gearbox-venture.html