The hook up between Renault-Nissan and Daimler has provided further evidence for the pressing need for scale in the automobile industry.

It has been noted that the industry is still recuperating from a decrease in demand. It is now turning towards a titanic investment in green-car technology.

Manufacturers have been under immense stress to trim costs. It is also believed that automakers that are just outside the top worldwide sales ranks are sure to face call to advance in the arena or engender greater alliances or to explain to their shareholders why they chose to be alone.

It is anticipated that after this deal, there will be a reassessment of developmental strategies by companies like Japan's Mitsubishi Motors, France's PSA Peugeot Citroen, Germany's BMW and even Italy's Fiat.

David Cole, Director of the Center of Automotive Research in Ann Arbor, Michigan, says, "We are going to see some significant mergers, acquisitions, restructurings and spinoffs".

The Mercedes manufacturer has decided to undertake a restricted deal with the Renault-Nissan alliance. It is expected that this alliance will give the small-car technology the scope it requires in the present scenario of tighter emissions and fuel economy standards.