Nissan faces new leadership crisis as top executive resigns

Nissan’s top executive, Ashwani Gupta, has announced that he will be leaving the company, sparking concerns about the stability of the automaker’s leadership. Gupta was part of an executive group who came in to help the company get back on track following the arrest of former chief Carlos Ghosn in 2019. Gupta quickly became a primary public face of Nissan, often appearing at quarterly earnings press conferences and was even tipped as a potential future CEO. However, recent reports suggest that Gupta’s departure may have been due to rivalry between him and chief executive Makoto Uchida, with Gupta hoping to take over as the company’s head. A new executive line-up will be announced on the same day as Gupta’s departure, June 27th.
Nissan has suffered several blows in recent times, including Ghosn’s arrest and subsequent internal turmoil, plunging sales, and the pandemic. The company has also weathered difficult relations with French alliance partner Renault, with Ghosn alleging that the charges against him were made to block his attempts to bring the two firms closer together. Earlier this year, Nissan and Renault signed a deal to revive their troubled relationship, with Renault cutting its stake in Nissan, which will now take a stake of up to 15 percent in Renault’s electric vehicle venture, Ampere.
Gupta’s departure is a major loss for Nissan as he was an essential driver of returning the company to stability following difficult times. The move may result in concerns about Nissan’s ability to maintain stable leadership as Gupta was seen as a strong force behind the company’s success. The departure comes at a time when Nissan is still recovering from the effects of the pandemic and other challenges. Former Nissan CEO Hiroto Saikawa resigned over excess pay following an internal investigation triggered by Ghosn’s arrest.