French carmaker Renault will report an extraordinary loss of about 9.5 billion euros ($11 billion) on its stake in Nissan Motor in the first half, it said on Tuesday, writing down its years-long investment in the Japanese firm that is battling slumping sales.

Renault SA will recognize an estimated €9.5 billion ($11.2 billion) non-cash loss after changing the way it accounts for its stake in ailing Japanese carmaker Nissan Motor Co.

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 .”