--- title: "Renault Eats $11 Billion Loss From Nissan’s ‘Catastrophic’ Implosion" date: "2025-07-01" modified: "2025-07-01" authors: - name: "Byron Hurd" job_title: "Editor" link: "https://www.thedrive.com/authors/byron-hurd" url: "https://www.thedrive.com/news/renault-eats-11-billion-loss-from-nissans-catastrophic-implosion" categories: - "News" - "News by Brand" - "Nissan News" tags: - "Nissan" - "sedan" - "suv/crossover" --- # Renault Eats $11 Billion Loss From Nissan’s ‘Catastrophic’ Implosion ![ENGLAND - APRIL 03: The Nissan logo is displayed above new and second hand used cars that are displayed for sale outside a Nissan main agent dealership on April 3, 2025 in Wiltshire, England. The sale of new and used cars is seen as a indicator of a healthy economy with many manufacturers offering competitive PCP (personal contract plans) or other forms of finance to incite buyers. The Nissan Motor Co, a Japanese multinational automobile manufacturer is among the largest automobile manufacturers in the world.]() *\Anna Barclay/Getty Images\* It's no secret Nissan has spent the better part of the past few years in a [sales free-fall](), but after months of [doom, gloom]() and [rampant speculation](), the accountants have finally [put a number]() on just how bad things have gotten: 11 billion. As in 11 billion *dollars*, which is how much alliance partner Renault is writing off in the first half of 2025 as its Japanese counterpart teeters on the verge of collapse. If there's any "good" news here for Renault—and I use that term loosely—it's that this $11 billion effectively only existed on paper. It represented money already invested in Nissan's operations. In a sense, this is Renault's way of acknowledging that it effectively threw that money in the garbage. From now on, Renault will value its Nissan holdings based strictly on the Japanese automaker's share price, *Reuters* said. Renault's shares were up slightly on the news; Nissan's were down. The French company currently owns 37.5% of its Japanese alliance partner. The situation is desperate here in the U.S., which is Nissan's largest single market. Vinay Shahani, who heads up U.S. sales for Nissan, told dealer representatives that early Q2 sales figures were nothing short of an “[absolute catastrophe]().” According to [results released Tuesday](), the company's second-quarter sales declined 6.5% from a year ago. The core Nissan division was down 6.1%, while sales at luxury subsidiary Infiniti were down 12.7. The Nissan brand's full-year results are closer to flat compared to 2024 thanks to stronger pre-tariff sales in Q1, though that interest has since cooled. Infiniti's full-year sales remain down 9%. Nissan's new CEO, Ivan Espinosa, has [signaled his willingness]() to do virtually anything necessary to shore up the company's performance and implementing a new strategy dubbed "Re:Nissan," which will reduce the company's workforce by another 11,000, and consolidate its 17 production plants down to 10—all by the end of 2027. *Got a tip? Send it in: tips@thedrive.com* ## Author Byron is an editor at The Drive with a keen eye for infrastructure, sales and regulatory stories. He brings a light, punchy style to all of his content, believing that there's plenty out there to be laughed at—himself included. Born and raised in Maryland but now based just a stone's throw from Detroit, Byron is an auto enthusiast and generalist who enjoys building and tinkering with things of all kinds, from cars, computers and digital cityscapes, to the new garage that will soon house his fleet (a CT4-V Blackwing, a JK Wrangler and an NA Miata). Inspired by an early love of rollercoasters, Byron quickly caught the high-performance driving itch. He's been tracking and auto-crossing his cars since 2007. In his downtime, Byron enjoys reading, playing city builders, and studying the history of the Motor City. ### Author social links [Bluesky]() [Instagram]() [LinkedIn]()