Compared with its predecessor, the Saab 93, the 96 featured greater and more easily accessible storage space and a larger rear window.

An optional 52 PS (38 kW) version of the engine, with triple carburetors and oil injection, was used in the Sport/Monte Carlo models.

The additional power was obtained from a modified cylinder head and filled crankshaft counterweights offering higher overall compression ratio.

However Rolf Mellde's view that Saab needed to switch to a four-stroke engine was stopped higher up by CEO Tryggve Holm.

To keep purchases of V4 specific parts secret they started a front corporation, Maskinverktyg AB (meaning Machine-Tool Company).

Just prior to the official introduction, a journalist noticed a lorry loaded with 96s with V4 stickers on the front bumpers.

In August 1975 (called "1975B" in Sweden as the less powerful engine was kept for cars marketed after the beginning of the new year, when the new emissions standards took effect), the car received new impact absorbing bumpers similar to those on the 99 and an altered bottom plate which allowed the rear seat to be moved 5 cm (2.0 in) further back.

[9] For the 1971 model year it was switched to a 1700 cc low compression engine, so as not to lose power while meeting new emissions regulations.

[10] Stated power dropped to 65 hp (48 kW; 66 PS) for 1972 as SAE gross figures were abandoned in favor of the lower net ratings.

Although such freewheels had been provided in other cars before as an economy measure, such as some early post-war Rovers and pre-war Chryslers, they were required in the Saab because of the limited lubrication in the two-stroke engine.

Where the engine operates at high RPM and low throttle (such as when coasting down a long hill), the lubrication provided may be inadequate.

A minor drawback to the freewheel, particularly for drivers unfamiliar with the Saab, is that it makes engine braking unavailable although it could be manually engaged or disengaged by a control in the foot-well.

Fixed wheel disengagement, using the foot, could be difficult, as it involved pulling a 'T handle' intended for manual operation.

Famous rallying names such as Simo Lampinen, Per Eklund, Pat Moss-Carlsson, Tom Trana, Stig Blomqvist and Carl Orrenius have also been connected with the Saab 96.

On August 16, 2011 a 1966 Saab 96 driven by Alex LaFortune set a new speed record at the Bonneville Salt Flats for stock body production cars with 750 cc engines at 110.113 MPH.