Los Angeles - More signs emerged Tuesday that the auto industry is recovering from its deep slump, including the sale of the Swedish upscale car brand Saab.

Ford Motor Co. said it will hire an additional 1,200 workers, and General Motors Co. announced a big investment in manufacturing electric engines.

And sports-car maker Spyker Cars announced Tuesday that it will acquire Saab from General Motors. As part of the agreement, Spyker said it will form a new company, Saab Spyker Automobiles, which will continue the Saab brand.

"Today's announcement is great news for Saab employees, dealers and suppliers, great news for millions of Saab customers and fans worldwide, and great news for GM," John Smith, GM's vice president for corporate planning and alliances said in a statement.

Ford said it will invest $400 million in a Chicago factory and will hire 1,200 workers to staff a second shift at the site, where the automaker will produce the next-generation Ford Explorer late this year.

"The Ford announcement is highly meaningful. Ford is in the middle of a record number of new product launches. They are scheduling a 155 percent increase in production over last year in the first quarter in North American production," said Sean McAlinden, chief economist for the Center for Automotive Research in Ann Arbor, Mich.

He noted that the Chicago announcement might mean the hiring of hundreds of "new entry" workers that cost half the hourly rate that current factory employees earn. He estimated that as many as 600 of the new hires could fall under this lesser-paid category.

The new workers will start at $14 an hour and over a period of years will get raises to bring their wages to the same tier as current employees, said Mike Omotoso, an analyst with J.D. Power & Associates, the auto information company.

"It was a concession the United Auto Workers union made to get Ford to hire workers and not be at a cost disadvantage compared with the other companies," Omotoso said.

He expects there will be plenty of applicants. "In today's economy people are grateful for a $14-an-hour job," he said.

The new Explorer, which will be built on the same frame as the Ford Taurus and Lincoln MKS sedans already made at the plant, will get at least 25 percent better fuel economy than the prior truck-based version, Ford said.

"This investment underscores Ford's commitment to building world-class, fuel-efficient vehicles in America and creating new jobs that will contribute to our nation's economic recovery," said Mark Fields, president of Ford's Americas division.

The Explorer will feature the auto industry's first seat belts that inflate upon impact, which Ford said will provide better protection for rear-seat occupants, especially "children and older passengers who can be more vulnerable to head, chest and neck injuries."

The inflatable rear seat belts spread crash forces over five times more area of the body than conventional seat belts. Ford said this reduces pressure on the chest and that it controls head and neck whipping for rear-seat passengers. The automaker plans to extend the technology to other vehicles in its lineup.

Meanwhile, GM will spend $246 million to become the first major U.S. automaker to design and manufacture electric motors, which it sees as the core technology for hybrids and electric vehicles.

"In the future, electric motors might become as important to GM as (gasoline-powered) engines are now," said Tom Stephens, GM vice chairman for global product operations.

The automaker plans to start selling its electric Chevrolet Volt model later this year.

GM believes that by bringing the design and manufacturing in-house, it will lower costs and "improve performance, quality, reliability and manufacturability of electric motors by controlling design, materials selection and production processes."

The first GM-produced electric motors will appear in three years in the company's next-generation, rear-wheel-drive hybrid vehicles.

"Electric motor innovation supported the first wave of automotive growth a century ago with the electric starter, which eliminated the need for a hand crank and revolutionized automotive travel for the customer," Stephens said. "We think the electrification of today's automobiles will be just as revolutionary and just as beneficial to our customers. Electric motors will play a huge role in that."

A $105 million U.S. Department of Energy grant will be part of the $246 million investment.