Renault and Daimler, partnering, take lessons from prior failures

In announcing their partnership, Renault CEO Carlos Ghosn and Daimler CEO Dieter Zetsche made fascinating reference to prior automotive alliances they've been part of (including, without mentioning by name, DaimlerChrysler) - and how this one would be different. From the New York Times:

The two executives spoke glowingly of the partnership they began last year, comparing it favorably to less successful alliances they have been involved in before.

"Often your failures help you more than your successes," Mr. Ghosn said, mentioning a previous partnership between Renault, based in France, and Volvo in Sweden.

"I fully agree," Dr. Zetsche said. Without actually mentioning Daimler's ill-fated 1998 acquisition of Chrysler, he added, "What we did then is the exact opposite of what we are doing now."

Instead of deciding to merge and then figuring out what to do together, Renault-Nissan and Daimler started with specific projects, among them the development of 3- and 4-cylinder motors for small cars, and a light commercial vehicle for urban areas to be introduced next year. The partnership works because it is based on pragmatic goals rather than a grand strategy dictated from above, Dr. Zetsche and Mr. Ghosn said.

Their advice in a nutshell - alliances shouldn't start conceptually, from the top and then be made concrete. They should include, out of the box, an initial, real, grassroots project that delivers value to both sides and shows them they can work together.