Renault reports nearly €10 billion non-cash loss due to Nissan stake

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Renault SA has changed the way it accounts for its stake in Japanese firm Nissan, leading to a non-cash loss of €9.5 billion, affecting its earnings in the first half of its 2025 fiscal year. 

The stake, previously accounted for using the equity method, will now be a financial asset, measured by the share price of Nissan, as of 30 June 2025.

“This approach aligns the value of the stake in Nissan in Renault Group's financial statements with the value of Nissan's share price,” Renault said in a statement. “The non-cash loss has no impact on the calculation of the dividend paid by Renault Group.”

The two carmakers have been cooperating for a little more than a quarter of a century, and the French brand owns nearly 36% of the ailing Japanese company.

Since the start of this year, the Japanese carmaker’s stocks have lost 28% of their value. Nissan also announced recently that it would shed 20,000 jobs worldwide after it reported a net loss of around €4bn for the fiscal year that ended in March 2025.

Renault Group, the owner of brands including Renault, Dacia, Alpine and Mobilize, successfully increased its sales against a broader market downturn in the first quarter of 2025, as carmakers across the globe face trade uncertainty triggered by US President Donald Trump’s tariff policy.

Renault’s future became even more uncertain after CEO Luca de Meo recently resigned to take over the leadership of luxury group Kering. 

In terms of the long-term alliance between Nissan and Renault, this partnership has come into question as reports have emerged that the two carmakers are looking for a way out of the strategic cooperation, which has bound them since 1999. 

Renault has, however, sent a strong message to investors saying: “The operational projects and collaboration resulting from the strategic cooperation between Renault Group and Nissan remain intact with a pragmatic and business-oriented approach.”