French carmaker Renault SA has revised the way it accounts for its stake in the Japanese company Nissan, resulting in a non-cash loss of €9.5 billion, reflected in the group’s financial results for the first half of fiscal year 2025, Euronews reported.

The stake, previously recorded using the equity method, will now be classified as a financial asset and valued based on Nissan’s share price as of 30 June 2025.

“This approach aligns the value of Renault Group’s stake in Nissan in the consolidated financial statements with the market value of Nissan shares,” Renault said in an official statement. “The non-cash loss has no impact on the calculation of the dividend paid by Renault Group.”

The two companies have been partners for just over a quarter of a century, with Renault holding nearly 36% of the struggling Japanese brand.

Since the beginning of the year, Nissan shares have lost 28% of their value. The company recently announced plans to cut 20,000 jobs globally after reporting a net loss of approximately €4 billion for the fiscal year ending in March 2025.

Despite the broader market downturn, Renault Group—which includes the brands Renault, Dacia, Alpine, and Mobilize—managed to boost its sales in the first quarter of 2025. Global car manufacturers continue to face trade uncertainty triggered by U.S. President Donald Trump’s tariff policies.

Renault’s future was further clouded after CEO Luca de Meo stepped down to take over leadership of luxury group Kering.

The long-standing partnership between Nissan and Renault has also come under scrutiny following reports that the two automakers are exploring ways to end their strategic alliance, which has been in place since 1999.

Nevertheless, Renault sought to reassure investors, stating: “The operational projects and collaboration resulting from the strategic partnership between Renault Group and Nissan remain intact, with a pragmatic and business-oriented approach.” |BGNES