General Motors have supported the project from its inception and see the City Car as an integral part of the future development of the automobile, although remain cagey on the practical details of making the project viable.

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Understandably, considering research and development and added production costs, the National Automobile Dealers Association is against the rule as it currently stands.

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So it is a curious development to hear today it has been announced that SAAB Automobile and BMW reached an agreement to allow the Swedish group to use engines developed by BMW. The first element of the JV will be for engines to be deployed in the new 9-3 that will appear in late 2012.

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