Renault Takes €9.5B Loss on Nissan Stake Amid Woes

Renault SA will report a €9.5 billion ($11.2 billion) non-cash loss in the first half of its 2025 fiscal year due to a change in accounting for its nearly 36% stake in Nissan, now measured as a financial asset aligned with Nissan's declining share price. This shift reflects Nissan’s recent financial troubles, including a net loss of about €4 billion and plans to cut 20,000 jobs globally. The move has no impact on Renault’s cash flow or dividend calculations, though future changes in Nissan’s share price will directly affect Renault’s equity. The accounting adjustment follows the loosening of the longstanding partnership between Renault and Nissan amid mounting market challenges and global trade uncertainty. Despite the financial setback and leadership changes at Renault, the company maintains its operational collaboration with Nissan. Renault also highlights increased sales and ongoing strategic projects in a challenging market.