The Renault group announced on Tuesday 1is July, before the opening of the scholarship, a huge accounting loss: 9.5 billion euros, linked to a new way of assessing its participation of 35.71 % in the capital of Japanese Nissan. Until now, Renault had the Nissan shares at a price of 1,500 yen (8.86 euros) per share. It will now appear at its true market value, or 350 yen. Since the beginning of the year, Nissan action has been down 28 %. The group specifies that this change does not affect its cash and will have no effect on its dividend.
It is a final twist in the long history that has linked the two manufacturers since 1999. Almost the last act of unraveling this alliance in danger since the arrest of Carlos Ghosn in Japan, on November 19, 2018. On March 31, the two groups have mutually allowed themselves to be able to reduce their cross -participations from 15 % to 10 %. Nissan can therefore sell part of its Renault shares. As for the Frenchman, he already sells his Nissan actions gradually. In 2023, these transfers brought him 1.6 billion euros in cash flow.
“This accounting development has nothing to do with the departure of Luca de Meo”said Philippine de Schonen, director of investor relations at Renault Group. The Managing Director will leave the group’s management on July 15 to join, in mid-September, that of the luxury giant Kering. It follows from the application of international accounting standards called “IFRS”. The Renault-Nissan Alliance is now limited to pragmatic cooperation, on a case-by-case basis, project by project, the two companies become a financial participation for each other, evaluated during the stock market.
Massive overcapacity of Nissan
It will still allow the next boss to pilot a group “Discrocked”according to the expression of Philippine de Schonen. From now on, Renault’s financial results will reflect the performance of the brand in the diamond, Dacia, Alpine, the financial services of Mobilize and the subsidiary devoted to thermal and Horse Hybrid engines, and will no longer be affected by losses linked to sales of Nissan shares.
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