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In 1977, Volvo tried to combine operations with rival Swedish automotive group Saab-Scania, but the latter company rejected it. In the 1970s, French manufacturer Renault and Volvo started to collaborate. In 1978, Volvo Car Corporation was spun off as a separate company within the Volvo group and Renault acquired a minority stake, before selling it back in the 1980s after a restructuring. In the 1990s, Renault and Volvo deepened their collaboration and both companies partnered in purchasing, research and development and quality control while increasing their cross-ownership. Renault would assist Volvo with entry-level and medium segment vehicles and in return Volvo would share technology with Renault in upper segments. In 1993, a 1994 Volvo-Renault merger deal was announced. The deal was barely accepted in France, but it was opposed in Sweden, and the Volvo shareholders and company board voted against it. The alliance was officially dissolved in February 1994 and Volvo sold off its minority Renault stake in 1997.

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