Renault books $11.2B non-cash loss by valuing Nissan stake on depressed share price.
Nissan seeks supplier payment delays to boost liquidity amid junk-rated debt.
New LEAF, upcoming hybrids, and Xterra revival hopes aim to rebuild Nissan’s lineup.
Renault will record an estimated €9.5 billion ($11.2 billion) non-cash loss after shifting the accounting method for its stake in Nissan to tie its value directly to the Japanese automaker’s weakened share price. The move, announced Monday, reflects Nissan’s 38 % stock decline over the past year.
This development highlights Nissan’s worsening financial position despite assurances from Christian Meunier, Chairman of Nissan Americas. The company reported a net annual loss of roughly $4.5 billion for the fiscal year ended in March, its largest setback in about 25 years. Nissan’s debt has been downgraded to junk by all three major rating agencies, and it faces some $5.1 billion coming due in 2026. The automaker also expects its automotive operations to post negative free cash flow of about $3.8 billion for the April-June quarter, steeper than last year’s comparable period.
New Nissan America Chairman Christian Meunier Wants the Xterra to Return, and the Kicks Play to Stay
To navigate immediate liquidity pressures, internal emails show Nissan has asked certain suppliers in Britain and the European Union to accept deferred payments. The strategy, intended to shore up short-term cash, includes offering suppliers larger payments in exchange for delays or partnering with banks like HSBC to bridge the gap. Correspondence reviewed by Reuters pointed to a €150 million cash preservation goal, with delayed supplier payments potentially boosting liquidity by up to €59 million.
New CEO Ivan Espinosa, appointed in April, is overseeing an effort to cut approximately $3.4 billion in costs over two years, including closing seven factories and weighing a 20,000-job reduction. At a shareholders meeting last month, Espinosa said the measures were necessary despite their impact, as more than 1,000 attendees questioned Nissan’s turnaround strategy.
In North America, Chairman Meunier is steering efforts to reinvigorate Nissan’s lineup with both volume and aspirational models. Meunier signalled interest in reviving the Xterra to capture demand for rugged SUVs and stressed the importance of keeping entry-level offerings like the Kicks affordable. He also indicated more collaboration with Mitsubishi on shared platforms and hybrid technology.
Meanwhile, Nissan has moved to halt work on a planned 2028 refresh of the Murano. Internal documents and presentations show the company scaled back Murano production targets by 21 % for the 2025 fiscal year after building up over five months’ worth of inventory. Although the recently launched fourth-generation Murano lifted sales by 84% in the U.S. in the first quarter, the model struggles in a segment increasingly dominated by three-row or off-road-oriented crossovers, like the Pathfinder. We presume that talks of the Xterra’s return and the pausing of future Murano plans are not a coincidence. The Murano nameplate has seen its lustre wear off after a 10-year run for the previous generation. The Xterra badge, on the other hand, has the makings of something that could reignite passion for the brand, something the Murano could never do despite its phenomenal beginnings.
Nissan is also working to restore momentum in electrification. It unveiled a third-generation LEAF offering up to 488 kilometres of range with faster charging, updated digital displays, and bi-directional energy capabilities. The LEAF will launch in North America this autumn, with pricing to follow. Over the next 18 months, Nissan plans to introduce 18 new or heavily revised models worldwide, spanning internal combustion, hybrid, plug-in hybrid, and electric variants.
Partial Source: Automotive News
