Initially the V4 engine was designed by Ford for a new entry compact car intended for the US market to be called the Ford "Cardinal", which eventually evolved into the Taunus 12m P4. Ford abandoned the "Cardinal" project and instead built the Ford Falcon for North America. Ford then sought other uses for the V4 engine which was initially tested in the Saab 96. Ford bought several Saab 96s for testing and eventually sold the cars back to Saab with the V4 engines in them. Saab tested the V4s at their Trollhättan test track which stimulated Saab to acquire the V4 engine for their 95, 96, and 97 (Sonett) introduced in August 1966 (1967 production model). The V4 engine eliminated the need to mix oil with fuel for the two-cycle Saab "Shrike" engine and provided better low end torque. Saab dealers offered the first owner a "Lifetime Warranty" for the V4 for US$50.
The 1.2 L (1,183 cc) version features an 80 mm × 58.86 mm (3.150 in × 2.317 in) bore and stroke. Output was 40 hp (29.8 kW) and 80 N⋅m (59 lb⋅ft) or 45 hp (33.6 kW) and 82 N⋅m (60 lb⋅ft).
The 1.3 L (1,288 cc) version had an 84 mm × 58.86 mm (3.307 in × 2.317 in) bore and stroke. Output was 50 hp (37.3 kW) and 95 N⋅m (70 lb⋅ft) or 53 hp (39.5 kW) and 98 N⋅m (72 lb⋅ft).
The 1.5 L (1,498 cc) V4 had a 90 mm × 58.86 mm (3.543 in × 2.317 in) bore and stroke. It produced 55 hp (41 kW) and 107 N⋅m (79 lb⋅ft), 60 hp (44.7 kW) and 114 N⋅m (84 lb⋅ft) or 65 hp (48.5 kW) and 117 N⋅m (86 lb⋅ft) at 2500 rpm.
The 1.7 L (1,699 cc) V4 had a 90 mm × 66.8 mm (3.54 in × 2.63 in) bore and stroke. It produced 65 hp (48.5 kW) and 129 N⋅m (95 lb⋅ft), 70 hp (52.2 kW) and 137 N⋅m (101 lb⋅ft) or 75 hp (56 kW) and 130 N⋅m (96 lb⋅ft).
1971–1974 Saab 95, Saab 96 and Saab Sonett, low compression version with 65 hp (48 kW) (same as its contemporary 1500 cc 95/96) for USA market
Some DKW Munga, a Jeep-like vehicle used by the German army, were retrofitted with the Taunus V4 to replace its original two-stroke engine.
Since the Saab 96 was used for rallying it was also tuned. In the rally versions it was bored and stroked to 1.8 and 1.9 L (1,815 and 1,933 cc) giving around 150 hp (112 kW) in the naturally aspirated version and 200 hp (149 kW) DIN at 7000 rpm in the Saab 96 RCTurbo version, doing 0 to 100 km/h (62 mph) in five seconds. SAAB also tuned the engine to 240 hp (179 kW).[2][3]