Mazda Motor Corp. said Wednesday it will form a business tieup with Italy's Fiat, a step that could help it climb out of the red ink it has been mired in since 2008 amid harsh global competition.

The automaker has been seeking a new partner as it reduces its ties with troubled Ford Motor Co., which was once its largest shareholder, while Fiat has reportedly sought additional business partners outside of Europe after buying struggling Chrysler LLC last year.

Under the planned cooperation, Mazda will develop and manufacture a new Mazda Roadster two-seater sports car, called the Mazda MX-5 abroad, for its own and Fiat's Alfa Romeo brand, base on Mazda's platform.