French carmaker Renault said it has posted a loss of 9.5 billion euros after changing the way it treats its stake in troubled Japanese partner Nissan in its accounts.

Renault bailed out Nissan in 1999 and since then the two carmakers have held stakes in each other in a volatile partnership that never led to a merger.

Heavily indebted Nissan is going through another difficult period, reporting a net loss of $4.5 billion for the financial year to March 2025 and announcing plans to cut 15% of its staff.

Its share price has also plunged by almost 40% in the past year, and the stock is now worth less than a quarter of its value during the heyday of its partnership with Renault in the 2000s.

Companies have some discretion not to reflect fluctuations in the value of their stakes in other firms in their accounts, but international accounting rules force them to reflect market value.

Renault said it would change the treatment of its stake in Nissan, accounting for it as a financial investment from June 30, 2025, which "will result in the recognition of a loss estimated at 9.5 billion euros," it said in a statement quoted by AFP.

Add that the change will have no impact on cash or dividend payments to shareholders.

However, in the future, it will mean that fluctuations in Nissan's share price will be reflected in Renault's equity value rather than operating results.

Previously, all dividends paid by Nissan to shareholders were accounted for as revenue, which boosted Renault's profits in some years. Renault said it has received €8 billion in dividends from Nissan since the formation of their alliance.

The French carmaker acquired a stake of almost 36% in Nissan, which has become a source of tension between France and Japan, and under a recent agreement the two companies will reduce their formal cross-shareholding from 15% to 10%.

Renault said the change in accounting would not affect ongoing projects with Nissan, including the development of a new small car, the Nissan Micra, based on the new electric Renault 5. | BGNES