Renault will take 3.6 billion euro hit from Nissan losses

French automaker Renault said on Thursday that losses at its Japanese partner Nissan, in which holds a 43% stake, would drag on its on net revenues by 3.6 billion euro ($3.96 billion) in the first quarter.

Renault, which posted its first net loss after 11 years in 2019, has like Nissan been having a hard time with declining sales, arrest of Carlos Ghosn in 2018, and a drop caused this year by the coronavirus pandemic.

The two automakers, which this week announced plans for more production sharing under their three-way alliance with Japanese automaker Mitsubishi Motors in a bid to curb costs, are also embarking on individual restructuring and savings strategies.

Nissan posted an annual operating loss of 40.5 billion yen ($376 million) for the year to March 31, its worst performance since 2008/09, while net losses were at 671.2 billion yen ($6.23 billion).

Renault is set to reveal details of its turnaround plan on Friday.