The deal will also assist Saab in securing vital loans from the Swedish government.
"GM will let Saab use its global platforms, components and other (unspecified) systems in exchange for Saab’s safety, chassis and engine technology," Jan-Willem Vester, Saab spokesman said today.
Mr Vester also indicated that Saab is to launch several new products in the near future and that the success of these will depend heavily on GM components and systems.
"GM has pledged to support Saab with up to US$400 million, but Saab executives are currently courting external investors," Mr Vester said. "Saab needs the additional funding to market and launch its new products and to make the brand salable".
The Swedish government is agreeable to helping support Saab but has said any financial aid is contingent on GM being able to attract a new owner for the business.
Saab employs about 5,000 people in Sweden. There are another 15,000 people indirectly associated with the brand.