Renault SA and Nissan Motor Co said in a joint statement on Tuesday that it would be expanding its existing venture agreement with Mitsubishi Motors Corp. The new provisions in the venture agreement would have Mitsubishi develop sedans and small cars, the automakers said. Renault owns a 43.4% stake in Nissan.

The terms of the venture specifically called for Mitsubishi to introduce two Renault sedans under the company brand and develop a new small vehicle that also has an electric version.

According to a Reuters report, the move further emphasized Renault-Nissan chief Carlos Ghosn's goal to save in expenditures across the automaker alliance by sharing costs.

Ghosn endorsed the new venture provisions and said, "I welcome the direction being taken towards this broader cooperation."

On the other hand, the spokespeople of all three companies reiterated that the alliance would not involve a capital tie-up.