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Renault SA has modified the best way it accounts for its stake in Japanese agency Nissan, resulting in a non-cash lack of €9.5 billion, affecting its earnings within the first half of its 2025 fiscal 12 months.
The stake, beforehand accounted for utilizing the fairness methodology, will now be a monetary asset, measured by the share value of Nissan, as of 30 June 2025.
“This method aligns the worth of the stake in Nissan in Renault Group’s monetary statements with the worth of Nissan’s share value,” Renault stated in a press release. “The non-cash loss has no affect on the calculation of the dividend paid by Renault Group.”
The 2 carmakers have been cooperating for a bit of greater than 1 / 4 of a century, and the French model owns almost 36% of the ailing Japanese firm.
For the reason that begin of this 12 months, the Japanese carmaker’s shares have misplaced 28% of their worth. Nissan additionally introduced not too long ago that it will shed 20,000 jobs worldwide after it reported a internet lack of round €4bn for the fiscal 12 months that led to March 2025.
Renault Group, the proprietor of manufacturers together with Renault, Dacia, Alpine and Mobilize, efficiently elevated its gross sales towards a broader market downturn within the first quarter of 2025, as carmakers throughout the globe face commerce uncertainty triggered by US President Donald Trump’s tariff coverage.
Renault’s future turned much more unsure after CEO Luca de Meo not too long ago resigned to take over the management of luxurious group Kering.
When it comes to the long-term alliance between Nissan and Renault, this partnership has come into query as stories have emerged that the 2 carmakers are in search of a method out of the strategic cooperation, which has certain them since 1999.
Renault has, nonetheless, despatched a robust message to traders saying: “The operational initiatives and collaboration ensuing from the strategic cooperation between Renault Group and Nissan stay intact with a realistic and business-oriented method.”