Renault Reports Massive Loss in 2025 Due to Write-Downs of Nissan Stake

French automotive giant Renault Group published its financial results for 2025, which caused a stir in capital markets. The most striking information is the recording of a net loss of 10.9 billion euros. This is a drastically worse result compared to the profit of 752 million euros achieved the previous year. However, the main cause of this situation is not an operational collapse, but an accounting operation related to an impairment charge on the value of its stake in the Japanese conglomerate Nissan. The process of loosening mutual capital ties forced a change in the treatment of these assets, resulting in a charge of 9.3 billion euros. The Renault-Nissan-Mitsubishi alliance, formed in the late 1990s, was for decades a symbol of global automotive industry integration under the leadership of Carlos Ghosn, before financial scandals and competency disputes led to its revision.Despite the terrible net result, the company's operational data provides reasons for cautious optimism. Group revenues increased by 3%, reaching a level of 57.9 billion euros. The new CEO, François Provost, who took over after Luca de Meo, emphasizes that the company achieved solid results in a difficult market environment. The operating margin was 6.3%, which, although a decrease from 7.6% last year, remains a better result than some competitors, including the Volkswagen group. The management proposed maintaining the dividend at the unchanged level of 2.20 euros. „Our results demonstrate the teams' commitment to ensuring stable, top-class performance in a complex market context.” — François ProvostHowever, forecasts for 2026 anticipate further pressure on profitability. Renault expects a decline in its operating margin to around 5.5%. This is the effect of an escalating price war with manufacturers from China and the costly transition towards electromobility. The conglomerate plans a model offensive, including the introduction of a new, cheaper version of the electric Twingo model, and expansion of operations into markets outside Europe, such as India and South America. The construction of a new generation of compact electric cars at plants in Palencia, Spain is also being considered. Renault Group Net Result (billions of euros): 2024: 0.75, 2025: -10.99.3 bn EUR — was the impairment charge related to the stake in NissanKey Renault Indicators 2024 vs 2025: Revenues: 56.2 bn EUR → 57.9 bn EUR; Operating Margin: 7.6% → 6.3%; Net Result: 752 mn EUR (profit) → 10.9 bn EUR (loss)Emphasizes the successively growing revenues and operational resilience of the company despite huge accounting write-downs. | Focuses on the gigantic financial loss and threats from Chinese price competition.