Business Jun. 21, 2011 - 06:34AM JST ( 2 )

TOKYO —

Nissan Motor Co and Mitsubishi Motors Corp announced Monday that they have formed NMKV Co Ltd, a new joint venture to develop minicars for the Japanese market. The new joint venture, which has 35 employees, is based in Takanawa in Tokyo’s Minato Ward.

The new company will integrate the product planning and engineering of future minicars for Nissan and Mitsubishi by harnessing the product planning know-how possessed by each company, both companies said in a statement. It was formed to unite the strengths of Nissan and Mitsubishi in the areas of vehicle engineering, development and parts sourcing, as part of an overall strategy to bring new minicar products to market.

More than a third of new car sales in the Japanese market come from the minicar segment as the demand for smaller cars and eco-cars remains strong. This new joint venture for minicar development will enable Nissan to continue development of products that reflect Nissan’s DNA at the design and product planning phases. The JV will benefit Mitsubishi by supplying highly-competitive products to its product line-up and by offering increased economies of scale advantages through Nissan’s purchasing capacity.

The establishment of the NMKV Co is part of the project to expand the scope of business collaboration that the two companies agreed to in December 2010.