Rival Japanese automakers Toyota and Mazda are forming a long-term partnership.
Officials with the car companies say they want to focus on developing technologies to help improve safety and fuel efficiency.
The two automakers – competitors in showrooms – are not yet providing many specifics about what they will produce together.
But both face obstacles affecting the entire industry, particularly how to deal with the rising cost of creating new vehicles for the global market and meet new emissions standards.
Many automakers are weighing partnerships.
The head of Fiat Chrysler recently floated the idea of working with other car companies.
The Ford Motor Company once owned about a third of Mazda but began shedding its stake in the Japanese automaker in 2008.
Toyota, already the top automaker in terms of global sales, is pushing to grow further after being hit by a number of massive recalls, most in the U.S., that began in 2009.