Kyodo News reports that Mitsubishi Motors (MMC) said on Wednesday it has signed an agreement with Hyundai Motor and its vehicle parts affiliate, Hyundai Mobis, to cooperate in developing, manufacturing and marketing passenger cars and automotive components.

The agreement with the South Korean companies provides a new basis for future cooperation, replacing the original accord made between MMC and Hyundai Motor 20 years ago, MMC said.

"The new cooperation agreement demonstrates the intention of Mitsubishi Motors to improve on its relationships and potential synergies with good partners such as Hyundai Motor," MMC president Rolf Eckrodt said in a statement.

Hyundai Motor president Kim Dong Jin said, "We are glad to extend our relationship with Mitsubishi Motors. Our cooperation has been a long and productive one and we look forward to success in the future."