Renault says that it previously accounted for using the equity method and that it will now consider the stake a financial asset measured at fair value estimated on the basis of Nissan's stock price.

Reuters has previously reported that Nissan will be selling sell 5% of its 15% stake in the French automaker to raise cash.

“The implementation of this new accounting treatment, resulting from the recent changes in the terms and conditions for the exercise by Renault Group of its rights related to its stake in Nissan, will result in the recognition of a loss estimated at €9.5 billion, which will be recognized in the income statement, mostly as ’other operating income and expenses’ at the date of the change, with no cash impact and no impact on the calculation of the dividend paid by Renault Group,” the statement reads.

As part of the Framework Agreement, Renault Group and Nissan entered into an amendment to the New Alliance Agreement, which aims at increasing the flexibility of each party with respect to their cross-shareholdings, by setting the lock-up undertaking of both Renault Group and Nissan at 10% (instead of 15% currently). Each of Renault Group and Nissan would be entitled, with no obligation, to lower their respective shareholding to a minimum of 10%.

The Renault Group says although this accounting change implies a significant adjustment to Renault Group's financial statements, it does not change the strategic and operational commitments between Renault Group and Nissan.

“The two partners continue to work on joint industrial and technological development programs, as evidenced by the new strategic projects announced on March 31, 2025.

“These initiatives illustrate a relationship based on pragmatic and business-oriented decisions and show a common desire to maximize synergies and create value for both companies, while allowing each to maintain flexibility and efficiency for their operations,” the statement from Renault Group adds.

Renault Group would also own 100% of Renault Nissan Automotive India Private Ltd (RNAIPL), by acquiring the 51% shareholding currently held by Nissan. This project represents a key opportunity for Renault to expand its international business.

Nissan will maintain its presence in India with a strong focus on increasing market coverage. RNAIPL would continue to produce Nissan models, including the new Nissan Magnite, and will serve as a crucial pillar for the company’s future expansion plans.

This is important news for Nissan South Africa who, as part of a larger two-country agreement, have a favourable trade agreement with India and for whom the Magnite is an all-important volume seller.

The latest co-developed models (2024–2026):

Read more about Nissan Motor's continuing woes in sn effort to raise cash here.