The Renault-Nissan alliance was born out of the challenges that both company’s were facing. Generally in the automotive market there were challenges and only the major companies managed to survive. The Nissan and Renault companies were faced with the changes in the market, and emerging challenges. They were both facing different, but related challenges in their operations hence their performance in the market declining year after year. Both companies were pursuing opportunities for partnering with other stronger companies in order to survive until they met and started negotiations. For the alliance to survive, and benefit the companies there were changes that took place. The changes cut across management to production structures, and cost reduction measures. The alliance helped the two companies recover and grow to high profits.