Archive · 1 Jul 2025
Renault to Report $11B Loss on Nissan Stake Amid Declining Value
Renault, a car company, is showing a big loss of $11 billion because its investment in Nissan, another car company, isn't worth as much anymore.
This is happening because Nissan isn't selling as many cars as before and hasn't updated its cars to compete with others.
Renault is also changing how it keeps track of its investment, which means that future changes in Nissan's value will not affect its current earnings reports.
The two companies, which used to work closely together, are now less connected.
Investors reacted by selling shares, which caused the stock prices to go down a little.
Renault will report an $11 billion loss on its Nissan stake.
The loss is due to a change in accounting based on Nissan's share price.
Nissan faces challenges including weak sales and an outdated lineup.
The Renault-Nissan alliance is loosening, with Renault reducing its stake.
Market reaction saw Renault shares slip 1% and Nissan's fall 2.4%.
- Who
- Renault is reporting the loss, related to its stake in Nissan.
- What
- Renault is reporting an $11 billion loss on its Nissan stake.
- When
- The report is for the first half of the year.
- Where
- The story involves Renault and Nissan, both international companies.
- Why
- The loss is due to Nissan's declining value and a change in accounting.
Renault
Nissan
Impact of Nissan's Financial Performance
Renault
Acknowledges the financial adjustments but emphasizes ongoing collaboration remains.
Nissan
The financial performance of Nissan negatively impacts Renault's holdings.
- Loss Amount
- $11 billion
- Stake Percentage
- Renault holds 35.7% of Nissan
- Accounting Change
- Share price-based
- Nissan's Loss
- $4.5 billion (annual)
- Market Reaction
- Renault shares down 1%, Nissan down 2.4%