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Investing.com -- Renault (EPA:RENA) Group, the French automaker, announced it anticipates a negative impact of 2.20 billion euros ($2.44 billion) on its first-quarter earnings due to Nissan (OTC:NSANY)’s restructuring and turnaround efforts. Renault, which owns 35.71% of Nissan’s share capital, made this announcement on Tuesday.
The negative contribution includes impairments and restructuring costs associated with Nissan’s turnaround initiatives, which were announced on April 24. Nissan had previously stated that it expected a net loss of approximately $5 billion for the fiscal year that ended in March. This loss was attributed to the necessary impairments and restructuring, as well as a decline in sales.
Nissan has been focusing on addressing weak sales, especially in China. For the fiscal year 2025, the company reported a 4.3% drop in sales to 3.3 million units, primarily due to decreases in China, Japan, and Europe.
In November of last year, Nissan announced a plan that included job cuts and a reduction in global production capacity. Specifically, the plan involved eliminating 9,000 jobs and decreasing its worldwide production capacity by 20%.
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