Nissan Motor Co. and Mitsubishi Motors Corp. have announced a new 50-50 joint venture to develop minicar models which they will sell around the world.

According to the terms of the deal, the new company would come up with a minicar model made available to both automakers by 2012. The partnership also involves Nissan providing a light van and wagon models to Mitsubishi for the Japanese market and Mitsubishi in turn would supply an SUV to Nissan to sell in the Middle East.

The mangement of both Nissan and Mitsubishi have the following comments:

"The expansion of the agreement will complement each other's regional characteristics and product lineup," said Mitsubishi Motors President Osamu Masuko.

"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 minicar business in Japan," said Renault-Nissan's CEO Carlos Ghosn in a press statement.

This is not the first time that these Japanese automotive giants have cooperated. In the past, they have cooperated on numerous projects, including building small engines for minicars under 660 cc. The two automakers also raised the possibility of working together to develop electric models too.