Shareholders Back Nissan Leadership Despite Surveillance Controversy and Renault Deal Strains

Nissan Motor Co, Ltd NSANF NSANY shareholders re-elected its CEO and other board nominees on Tuesday at an annual meeting amid internal discord.

The Japanese automaker is investigating claims that CEO Makoto Uchida conducted surveillance of his deputy Ashwani Gupta. 

The controversy mirrors previous internal issues leading to former CEO Carlos Ghosn's dismissal, raising fears of a distraction from essential recovery efforts, Reuters reports.

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The shareholder meeting follows a new deal with alliance partner Renault SA RNLSY, causing additional strain between Uchida, who supported the agreement, and Gupta, who had concerns about specific terms.

Christopher Richter, deputy head of research at brokerage CLSA, flagged that internal disagreements and drawn-out talks about the Renault alliance have taken management's focus away from core business activities. 

At the same time, competitors like Toyota Motor Corp TM make significant advancements in electric vehicles and solid-state batteries.

The terms of the deal announced in February, where Nissan would acquire up to a 15% stake in Renault's spinning-off electric vehicle unit, and Renault would lessen its 43% stake in Nissan, have not been finalized.

Gupta, who was COO and seen as a likely future CEO, did attend the shareholder meeting though Tuesday was his last day at the company.

Price Action: NSANY shares closed higher by 0.13% at $3.75 on Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.