The French automobile manufacturer Renault said on Tuesday that he had booked a loss of 9.5 billion euros ($ 11.2 billion) because he postponed the participation in the Japanese partner Nissan in his accounts.
Renault rescued Nissan in 1999 and the two car manufacturers have since used a rocky partnership in which they are never merged.
The strongly obliged Nissan has achieved another raw stain, achieved a net loss of 4.5 billion US dollars for the financial year until March 2025 and announced plans to cut 15 percent of its workforce.
The share price also dropped by almost 40 percent last year, and the stocks are now less than a quarter of their value in the heyday of the partnership with Renault in the 2000s.
Companies have a certain opportunity not to reflect the value fluctuations of the value of their equity applications in other companies in their accounts, but the international accounting rules have planned to reflect the market value.
Renault said on Tuesday that it would shift his treatment of his Nissan share to take into account as a financial investment on June 30, 2025, which will “lead to the recognition of a loss estimated of 9.5 billion euros,” it said in an explanation.
It added that the change had no cash effects or that the dividend payments would have an impact on shareholders.
In the future, however, this will mean that the fluctuations in the Nissan share price in Renault’s stock value and not in its operating results are reflected.
So far, all dividends that Nissan paid were booked as income, which promoted Renault’s result in a few years. Renault said that it had received eight billion euros on Nissan since its alliance was founded.
The French car manufacturer built up a participation in Nissan of almost 36 percent, which became a voltage source between France and Japan. In a recently carried out agreement, you will reduce its official cross-shameolding to 10 percent.
Renault said that the change in accounting would not influence his projects with Nissan, including the development of a new Nissan Micra underground compact based on the new Electric Renault 5.
