Abstract
The major vehicle manufaetures are facing an increasingly turbulent environment A depressed ıvord economy, rapidly changing technologies and the move toıvards globalization have brought strong changes to the key players. One response to these conditions has been the formation of various types of collaborative ventures, in particular, strategic alliances. Firms that enter strategic alliances without recognizing how knowledge and skills form the basis for future competitive advantage are likely to lose not only their technologies and skills, but also their ability to shape future products in that industry. Co-operation or interaction with an alliance partner to enter new markets or to develop new products also leads to competition in learning new skill and insights from one another.