Saab will develop electric all-wheel-drive and hybrid drive systems in a joint venture with American Axle Manufacturing (AAM).
The two companies have formed a new firm called e-AAM Driveline Systems which will commence operations on 1 October.
E-AAM will develop and market its electric all-wheel-drive system in a full service package, which can be integrated into existing platforms.
These products and the company’s expertise will be marketed to all car manufacturers.
Saab itself will become a client of e-AAM Driveline Systems, and will purchase components for use in Saab vehicles from 2012.
Jan Ake Jonsson, Saab Automobile CEO, said: “For Saab, the announcement of this partnership is a major step towards a successful future as an independent company.
“The new, electric, all-wheel-drive system will secure us a leadership position in our next generation.”
At the upcoming Paris motor show, Saab will be showing additions to the Saab 9-5 range, the updated Saab 9-3 TTiD and the zero-emission Saab 9-3 ePower.