Mitsubishi and Nissan to join forces in mini car partnership

The new partnership is a 50-50 joint venture between Nissan Motor Co. and Mitsubishi Motors Corp., and the two companies will collaborate to develop and produce mini cars for sale around the world. According to the agreement, the deal will see Mitsubishi and Nissan jointly produce a new mini car by the year 2012.

In addition, the partnership will see Nissan provide a light van and wagon models to Mitsubishi for sale in the Japanese domestic market, while Mitsubishi in return, will offer an SUV to Nissan for sale in the Middle Eastern market.

"This agreement is important for Nissan as it supports our expansion in emerging markets, meets immediate capacity needs overseas and enables us to grow our mini car business in Japan," said Renault-Nissan's CEO Carlos Ghosn in a press statement.

Mitsubishi and Nissan are already partners on other projects, such as building engines for small cars under 660cc in capacity. Both Mitsubishi and Nissan have also raised the possibility of working together to develop electric models too."The expansion of the agreement will complement each other's regional characteristics and product line up," said Mitsubishi Motors PresidentOsamu Masuko.