Renault’s $11.2 billion loss tied to its Nissan stake adds to tensions in the already rocky partnership

In 1999, Renault Nissan rescued and carried out the car manufacturers to each other since then, in a rock partnership that you have never seen.

Nissan has strongly achieved another approximate correction, as it published a net loss of $ 4.5 billion for the fiscal year until March 2025 and announced plans to reduce 15 percent of the workforce.

The price of its share also decreased by almost 40 percent in the past year, and the shares are now less than a quarter of its value during a partnership with Renault in the 2000s.

Companies have some possibilities for not reflecting fluctuations in the value of their stock shares in other companies in their accounts, but international accounting rules are paid to them to reflect the market value.

Renault said on Tuesday that it would change its treatment of Nissan’s content in its account as a financial investment as of June 30, 2025, which “will lead to a loss of a loss of about 9.5 billion euros.”

He added that the change will not have any critical effect or affect the profit payments for the shareholders.

But moving forward, this will mean that the fluctuations in the price of Nissan will be reflected in the value of property rights in Renault and not in operation results.

Previously, any profits that Nissan paid the shareholders as income, which enhances Renault’s profits during some years. Renault said she had obtained eight billion euros from profits from April since their coalition was founded.

The French auto company has built a stake in Nissan by approximately 36 percent, which has become a source of tensions between France and Japan, and will witness a recent agreement to reduce the official participation of 15 percent to 10 percent.

Renault said the accounting change will not affect his ongoing projects with Nissan, including developing a new group of Nissan Micra based on the new Renault.