Seeking a cost-effective way to boost its lineup in the shrinking Japanese market, Nissan Motor Co. (7201.TO) said it will market a Mazda Motor Corp. (7261.TO) minivan under its own brand.

In the first deal under which Nissan has put out a non-mini vehicle model from another car maker on its home turf, the two car makers said Friday they will expand the scope of their current manufacturing supply pact so that Mazda starts supplying its Premacy midsize sporty minivan to Nissan from May for the Japanese market.

The two companies said in a joint release that they will finalize details such as how many minivans to supply from now on.

The deal is latest in a recent trend where domestic and overseas auto makers have deepened their cooperation in order utilize their partner's strength to compensate for other shortcomings.

Nissan and its French peer Renault SA (RNO.FR) formed an alliance with Daimler AG (DAI) last April. Nissan is in a vehicle production partnership with Suzuki Motor Corp. (7269.TO) and just last month announced an expanded vehicle supply alliance with Mitsubishi Motors Corp. (7211.TO).

For Mazda, the agreement is the first tie-up announcement since Ford Motor Co. (F) last November relinquished its position as the top shareholder of the Japanese car maker. Ford remains a strategic partner for Mazda.

Under the current mutual vehicle supply pact, Mazda provides the Bongo van and truck to Nissan, which is sold as the Nissan Vanette van and truck. Nissan supplies the AD and AD Expert commercial vehicles to Mazda, which sells it as the Mazda Familia van.

-By Yoshio Takahashi, Dow Jones Newswires; 813-6269-2791; yoshio.takahashi@dowjones.com
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