Renault Suffers $11 Billion Loss Due to Nissan’s ‘Catastrophic’ Collapse.
Anna Barclay/Getty Images
Subscribe to The Drive’s daily newsletter
Stay updated with the latest car news, reviews, and features.
It’s widely recognized that Nissan has been experiencing a significant decline in sales over the past few years. After months of despair and speculation, the financial figures have finally revealed just how severe the situation is: 11 billion. Specifically, that’s 11 billion dollars that alliance partner Renault plans to write off in the first half of 2025 as Nissan hovers on the brink of collapse.
For Renault, if there is any “good” news—and that term is used loosely—it’s that this $11 billion largely existed only on paper. It reflects funds that have already been invested in Nissan’s operations, signifying Renault's acknowledgment that it essentially wasted that money. Moving forward, Renault will assess its Nissan stake based solely on the market value of the Japanese automaker’s shares, as reported by Reuters.
In light of this news, Renault’s stock experienced a slight uptick, while Nissan’s shares fell. Currently, Renault holds a 37.5% stake in its Japanese partner.
The situation in the U.S., Nissan’s largest single market, is particularly dire. Vinay Shahani, who oversees U.S. sales for Nissan, informed dealer representatives that early second-quarter sales data indicated an “absolute catastrophe.”
As per the results released on Tuesday, the company’s sales for the second quarter have decreased by 6.5% compared to the previous year. The main Nissan division saw a reduction of 6.1%, while sales for the luxury brand Infiniti dropped by 12.7%. Although the Nissan brand's full-year results are nearly flat compared to 2024, largely due to stronger pre-tariff sales in the first quarter, that demand has since dwindled. Infiniti's full-year sales are still down by 9%.
Nissan’s new CEO, Ivan Espinosa, has expressed his readiness to take whatever measures are necessary to improve the company’s performance, including the launch of a new strategy called “Re:Nissan,” which will cut the workforce by another 11,000 employees and reduce its 17 production facilities to 10 by the end of 2027.
Have a tip? Send it to: [email protected]
Other articles
A Model Y Made a 30-Minute Journey to Reach Its New Owner | Carscoops
Tesla is commemorating the inaugural autonomous delivery of a vehicle in the world.
Exceeding the speed limit by three times was just the beginning of this Mustang driver's issues | Carscoops
On top of everything, the Michigan driver possessed a stolen gun in the vehicle.
Dacia's Best-Selling SUV Will Soon Be Electric | Carscoops
Nonetheless, the current gasoline and hybrid models will continue to be available for a significant time into the 2030s.
Sheriff Reportedly Found Engaged in Street Racing in a Lamborghini After Promising a 'No Tolerance' Policy for Street Racing
A regional news source states that Lee County Sheriff Carmine Marceno was driving the speeding Huracan Spyder seen in this video.
Feds Probe Concealed Hazard Present in Numerous Range Rovers | Carscoops
The NHTSA, currently investigating the matter, reports that it is not aware of any accidents or injuries related to the front suspension issue.
Clownfish's Bright Orange Color Could Be a Criminal's Biggest Mistake | Carscoops
Officials report that the BMW M5 driver fled at speeds exceeding 100 mph but was subsequently easy to track down.
Renault Suffers $11 Billion Loss Due to Nissan’s ‘Catastrophic’ Collapse.
Nissan's persistent financial problems have impacted its French alliance partner, Renault.