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Toyota and Mazda have agreed a partnership which the firms said would "leverage the resources of both companies to compliment and enhance each other's products and technologies".
Both companies claimed the partnership would also result in more appealing cars that meet differing needs and tastes of customers.
A joint committee will be set up to evaluate how best to ultilise each company's strengths. The committee will encourage collaboration across a number of areas including environmental and safety technology.
"This latest agreement will go beyond the traditional framework of cooperation, aiming instead to create a whole new set of values for cars through wide-ranging medium to long term collaboration," said the companies in a statement.
Toyota recently worked with PSA (Peugeot-Citroen) to create the Aygo/C1/108 city car, while Mazda is sharing MX-5 technology with Fiat for its forthcoming 124 sportscar.
No specifics have been announced on whether or not it will mean all new cars will share technology with current models.
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