(June 11, 2010) BMW and Saab are discussing sharing parts and technology for a new small car the Swedish automaker wants to build, two people familiar with the matter told Bloomberg News.

A possible deal for BMW to provide Saab with engines, transmissions and allow Saab to use BMW's platform 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.The partnership talks were first reported today in Swedish newspaper Dagens Industri.

Saab, which Dutch supercar maker Spyker Cars bought from General Motors in February, has spent the last three months restarting production and severing most of its GM ties.

Spyker CEO Victor Muller told Bloomberg that 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.

Saab, in an official statement, said: "We indeed are looking for alliance partners but no cooperation with has been confirmed at this time. A smaller Saab below the 9-3 is not currently in our business plan though it would be on our wish list."