Aiming to cater for diverse global demands, the two companies will form a committee to decide which of their respective strengths will be shared.

The agreement is prioritising environmental and safety technology – likely to include Mazda’s SKYACTIV drive systems as well as an early confirmation that Toyota will offer access to its Hybrid Synergy Drive setup. Mazda will also produce small cars for Toyota at its plant in Mexico, where the Mazda2 supermini is made.

Toyota President Akio Toyoda said: "Mazda has proven that it always thinks of what is coming next for vehicles and technology, while still managing to stay true to its basic carmaking roots. I am delighted that our two companies can share the same vision and work together to make cars better."

Mazda President and CEO, Masamichi Kogai, added: "I hope that by working together to make cars better, we can raise the value of cars in the eyes of consumers while also enhancing the manufacturing capabilities of our home, Hiroshima, and all the communities we are involved in as well."