Nissan has released its fourth-quarter results for the fiscal year 2024/2025, which started from January 1 to March 31, 2025.

These results, adjusted to comply with International Financial Reporting Standards (IFRS), have contributed to an estimated €2.204 billion (US$2.45 billion) decline in Renault Group’s net income for the first quarter of 2025.

The decrease is linked to impairments and restructuring costs associated with Nissan’s turnaround efforts, which were announced on April 24, 2025.

Renault Group owns 35.71% of Nissan’s capital, with 17.05% of shares held directly and 18.66% held in a French trust for which Renault Group is the beneficiary.

🔗 Source: Renault Group

🧠 Food for thought

1️⃣ Nissan’s second turnaround attempt shows stark contrast to Ghosn-era revival

Nissan’s current financial struggles mirror the 1999 crisis when Renault initially invested in the near-bankrupt Japanese automaker, but with notably different leadership dynamics and results.

In 1999, Renault acquired a 36.8% stake in Nissan and dispatched Carlos Ghosn, whose “Nissan Revival Plan” successfully returned the company to profitability by 2001 through aggressive restructuring 1.

Today’s -€2,204 million contribution to Renault’s earnings represents another major restructuring effort, including plans to cut over 10,000 jobs globally 2.

The contrast is striking: while Ghosn’s turnaround is considered one of the most successful in corporate history, the post-Ghosn era has seen the alliance partners lose significant market share, dropping from 12% to 8% over four years after his 2018 departure 3.

Nissan’s U.S. sales have more than halved since Ghosn’s exit, falling from 1.5 million vehicles in 2018 to 729,349 in 2022, demonstrating the scale of recovery needed 3.

The current restructuring comes amid dire assessments, with reports suggesting Nissan had “as little as 12 months left to live” without major intervention, highlighting the urgency behind these costly turnaround measures 4.

2️⃣ Diverging fortunes reveal structural challenges in the alliance

While Renault Group achieved 2.9% sales growth in Q1 2025 with 564,980 units sold, Nissan faces a projected net loss of €4.6 billion for the fiscal year 2024-2025, exposing fundamental imbalances in the partnership 5.

This performance gap persists despite a 2023 restructuring that reduced Renault’s stake in Nissan from 43.4% to 15% to create more equality in the alliance 6.

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