French automaker Renault said on Tuesday it expects to book a 2.2-billion-euro ($ 2.4 billion) hit in the first quarter due to Japanese partner Nissan’s turnaround plan.

The two carmakers have been partners since 1999, when Renault rescued Nissan from bankruptcy. The French automaker has a stake in Nissan of nearly 36 per cent.

Nissan, which is heavily indebted and is engaged in an expensive business restructuring plan, posted an annual net loss of $4.5 billion.

It also announced plans to cut 15 per cent of its global workforce and warned about the potential impact of US tariffs.

“This negative contribution includes impairments and restructuring costs necessary for effective turnaround initiatives communicated by Nissan on April 24,” Renault said in a statement.

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A Nissan merger with Japanese rival Honda had been seen as a potential lifeline, but talks collapsed in February when the latter proposed making Nissan a subsidiary.

AFP