European carmakers' efforts at globalization have tended to focus on South America and Eastern Europe. This is because these markets have been relatively easy to enter because of the muted influence of U.S. and Japanese carmakers.
At the same time, they are not rich or secure markets, and this indicates European carmakers have been lamentably slow to gear themselves up for internationalization.
Renault has placed its final hopes of pursuing a global strategy on the tie-up with Nissan, yet there is no historical precedent for a union of weak partners producing successful results. To put it bluntly, the tie-up between Renault and Nissan is a 'dance of death' that the two companies have embarked on in their dy-ing days.
It is reminiscent of the defeat that the French army suffered at Dien Bien Phu in 1954 when they intervened to recover lost land in Indochina.
In the car industry, it is hard to bring even mergers between strong parties to a successful conclusion. Both parties in the Renault-Nissan tie-up are stressing the merits of reducing costs by jointly purchasing parts, yet this is only because there is nothing else that they can hope to achieve.
The unification of two car companies is only complete when their engines are amalgamated.
However, since there is no sense in getting rid of existing engines and it will take time to develop new products, the time scales should be measured in 10-year periods.
During this time it is likely that both companies will reach a breaking point, and that whatever path they take - whether it be a merger or some other strategy - will end in failure.