Ward's Auto World reports that General Motors has renegotiated the engine deal with Honda that provides the Saturn Vue its 250-hp 3.5L V6 powertrain. Sources tell Auto World that the new arrangement gives GM the option to not only possibly extend the contract beyond 2007, but also to increase the number of engines purchased each year. The original contract, signed in 1999, called for Honda to supply 60,000 engines each year beginning with the 2004 Vue. The new contract will allow GM to purchase an additional 5,000 to 7,000 engines annually.

The current Vue is set to be replaced in 2007 with a new model, but Saturn general manager, Jill Lajdziak told the publication that "we are having discussions about continuing the supply arrangement."

The Honda-sourced V6 is standard in uplevel Vue models and the Red Line Vue. Jim Trucksis, program manager for the 'tuned' sport-utility, told Auto World that General Motors is very happy with its sales performance to date. That GM is reportedly looking to increase production of the Red Line Vue by as many as 12,000 units next year. "So far we're very pleased [with the launch]," Trucksis said.

Separately, Saturn of West Sahara promotions manager D.J. Burman echoed Trucksis' comments when he told the Las Vegas Review-Journal newspaper that the V6-powered Vue is "our top-selling model right now. It took off as soon as people found out it had a Honda engine with 250 horsepower in it."

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Source: Ward's Auto World, Las Vegas Review-Journal