Saab commits to manufacture of 100 electric vehicles in 2010

Car giant Saab has announced it is to build 100 test versions of an electric model Saab 9-3 during 2010, which will be leased to individuals and companies across Sweden.

The announcement came late last week as the company also confirmed that lithium-ion battery manufacturer Boston-Power has joined its electric vehicle coalition, which also includes engine maker Electroengine, project managers Innovatum and trade body Power Circle.

"The electrification of transportation represents one of the most significant shifts since the invention of the automobile," Saab in a statement. "The coalition brings together internationally recognised experts, products and technologies to foster this transition."

The addition of Boston-Power to the group came just days after the Swedish government confirmed it would provide the group with $12m in research funding.

Boston-Power, which manufactures its batteries in China, is primarily involved in making batteries for laptop computers, but it is fast carving out a name for itself in the competitive electric vehicle market and in January raised $55m in funding to start making transport batteries, delivering its first vehicle batteries in the summer.

Saab also unveiled a test version of the electric Saab 9-3 last week, which it claims will boast a top speed of 112mph and range between charges of 150 miles.

The latest announcements came as speculation continued to surround the future of the company. Parent company GM has said it will close the firm if it fails to find a buyer before the end of the year, although it also said last week that it was close to finalising a deal with dutch automaker Spyker.

Reuters also reported last week that Beijing Automotive Industry Holding Company had purchased the rights and equipment to make the Saab 9-3 for $197m.