Both deals reflect the intense pressure on suppliers to have a global presence and cut costs given the rapid pace of consolidation among automakers worldwide, executives of the companies told reporters.

"Ford and Mazda are developing cars together and Nissan and Renault are developing cars together. Through this alliance, we can now supply parts to automakers for cars that will be built in both Japan and Europe," said Reiji Tagaya, president of Tokico, which rang up 112.3 billion yen ($1.0 billion) in sales over the past year to March.

The agreement with Futaba includes forming a joint venture to manufacture exhaust systems and stamped products at a Tenneco plant in Britain. Tenneco has long had ties to Futaba, Japan's largest maker of mufflers. Over 60 percent of its 163 billion yen in sales last year were to Toyota Motor Co, Japan's largest automaker.

Tenneco and Tokico, which relies on Nissan for over 20 percent of its sales, could lead to joint ventures being established to operate plants in areas where neither company now owns a facility. Tenneco Automotive vice president Tim Jackson said savings from the joint product development tie-up with Tokico will not amount to much at first, as the companies are aiming to win parts contracts for new car models to be produced beginning in 2004.

Futaba President Itsuo Kozuka, however, was more impatient, saying his company is hoping for synergy effects to be felt from next year.

Neither alliance involves a capital tie-up between the parent companies. Some details of the ties with Tokico were reported by Japanese media on Tuesday and its shares have since risen 14 percent to close at 233 yen on Wednesday.

Closer ties between Futaba and Tenneco had also been expected. Futaba shares ended down 2.58 percent on Wednesday at 1,380 yen.

The deals are the latest in a string of alliances between foreign and Japanese auto parts makers, spurred in part by efforts by Nissan Motor Co, now controlled by Renault SA, to slash its number of suppliers by half.