Problem: Following the french election in march 1993, the CEOs of volvo and renault needed to consider what modifications to their strategic alliance might be suggested by Renauls's impending Privatiazation. Was this the time to merge? What benefits would merger bring that were not already embodied in the alliance? How might a merger transform the alliance? If a merger was appropriate, then when should it be implemented? What controlling interests should the french and swedish sides have?