Why Nissan’s immense difficulties will have an impact of 2,200 million euros on their former Renault partner

The Renault automobile manufacturer awaits a negative impact of depreciation and restructuring costs of its Japanese partner Nissan who amounts to 2.2 billion euros in its accounts in the first quarter of 2025, the group announced on Tuesday.

The result published by Nissan in Japanese accounting standards “is reflected in the net benefit of the first 2025 quarter of Renault Group for a negative contribution estimated at 2,204 million euros”, specifies Renault in a press release.

This negative contribution “takes into account the depreciation and restructuring costs necessary for the effectiveness of the recovery initiatives communicated by Nissan on April 24, 2025,” adds Renault.

Renault still has 35.7% of Nissan’s capital (17% live and 18.7% through a structure responsible for selling shares along the water called Trust). As such, the diamond group goes back to its accounts for due to the net result (here Nissan’s net loss).

The Japanese manufacturer announced on Tuesday an important restructuring that will result in 20,000 employment cuts for the end of its financial year that ended in March 2027 and the closure of seven sites of 17.

Nissan on Tuesday announced a loss of 4,100 million euros for its year that ended in March 2025. Most of this loss is explained by accounting positions of approximately 3 billion linked to the restructuring of the company, which will take it to 2027 to close seven factories and eliminate 20,000 jobs, or 15% of its global workforce.

End of electricity discussion

Strong in debt, not profitable and undermined by the lack of shortage of sales in its key markets, Nissan had announced in November wanting to reduce its production capabilities by 20%.

Renault, Nissan and Mitsubishi had presented Flat 2023 the alliance that has brought them since 1999. Their relationship had been complicated by the surprise rise of the French state to the capital of Renault, in 2015, then due to the spectacular fall of Carlos Ghosn, then head of the Alliance, arrested at the end of 2018 in Japan for accusations of financial inconsses. Renault then had 43.4% of Nissan.

Given Nissan’s difficulties, the two manufacturers still relaxed their alliance at the end of March.

The participation of Renault Group in the capital of Nissan is 35.71%. Third Japanese manufacturer, Nissan almost merged in early 2025 with his compatriot Honda, with the idea of ​​taking the crucial turn of electric cars together, but discussions collapsed in mid -February.