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Renault Faces $11 Billion Hit Amid Nissan Woes

Renault Faces $11 Billion Hit Amid Nissan Woes
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Renault will book a massive loss on its Nissan stake, highlighting financial stress at the Japanese automaker and weakening their historic alliance.

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Renault will book a massive loss on its Nissan stake, highlighting financial stress at the Japanese automaker and weakening their historic alliance.

Renault Reports Major Loss

The French automaker will record a one-time loss of €9.5 billion ($11 billion) from its Nissan stake in the first half of 2025.

Nissan’s Decline Drives the Write-Down

The adjustment reflects Nissan’s continued slump, including a $4.5 billion net annual loss and no forecast for the current year.

Long Alliance Under Strain

This marks another step away from the once-tight Renault-Nissan partnership, shifting toward limited manufacturing collaborations.

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Dividends and Guidance Unaffected

Despite the scale of the loss, Renault says full-year guidance and shareholder payouts remain intact.

Analysts Back Renault’s Move

Experts view the write-down as a financial reset. Morningstar says it better reflects Renault’s true profitability.

Nissan Hit by EV Transition

Nissan has lagged in the electric vehicle race and continues to deal with aging models and leadership fallout from past scandals.

Stock Market Reactions

Renault shares rose slightly after the news, while Nissan shares dipped 2.4%, trading far below their 2002 valuation.

CEO Exit Adds Uncertainty

As Renault searches for a new CEO, the financial hit and partnership drift add fresh challenges for leadership.

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