Saab Automobile, the car maker owned by Netherlands-based Spyker Cars, has agreed with Fouriertransform, the Swed-ish government-backed venture capital firm, to set up a joint venture.
About 50 engineers from Saab will transfer to the venture, Vicura, to develop transmission systems, such as gearboxes, for Saab and other carmakers.
Jan-Aake Jonasson, chief executive of Saab, said: "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 compan."
Saab currently buys its manual gearboxes from General Motors, which sold the Nordic company in February last year, and its automatic transmissions from Japan-based Aisin Seiko.
Fouriertransform received SKr3bn ($440m) from the Swed-ish government in 2009 to invest in the country’s car industry. Per Nordberg, chief executive of Fouriertransform, said: "For Sweden and the Swedish automotive industry as a whole, it is vital to maintain and develop high competence."