Holden to build V6s

Holden is to build V6 engines for performance versions of the new Saab 9-3 and next-generation 9-5.

The all-alloy engines are being built for Commodores and other General Motors vehicles at Holden's engine plant in Melbourne.

The Saab engines are expected to be reworked and fitted with turbochargers in line with the carmaker's policy of using boosted engines only.

Saab wants to move to bigger engines to challenge German rivals and it believes its new 9-3 has a chassis capable of handling more power, up to 230kW.

The turbocharged 2-litre engine in the new top-range Aero produces 155kw. Saab recently dropped its only V6, the Griffin 9-5.