Renault announced a 9.5 billion euro loss due to a change in the accounting treatment of its stake in Nissan. The automotive partnership, established in 1999, has been contentious, with Nissan struggling financially and posting a net loss of $4.5 billion for the fiscal year. Renault’s stake in Nissan will now be treated as a financial investment rather than a business investment, impacting how share price fluctuations are reported. Despite this, Renault’s plans with Nissan remain unaffected by the accounting change.
Renault is shifting the treatment of its Nissan stake to account for it as a financial investment, leading to a recognized loss of 9.5 billion euros.
Nissan has reported a net loss of $4.5 billion for the financial year to March 2025 and plans to cut 15 percent of its workforce.
Renault's stake in Nissan, which once was nearly 36 percent, will see cross-shareholdings reduced officially from 15 percent to 10 percent.
The changes in accounting policy will reflect fluctuations in Nissan’s share price in Renault’s equity value, contrasting with previous income bookings.
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