Renault Spy Setback Said to Threaten Nissan Stake Plans

Renault SA’s mishandling of an espionage investigation has weakened Chief Executive Officer Carlos Ghosn in a tussle with the French state, its largest shareholder, over the carmaker’s future, four people familiar with the matter said.

Fallout from the spying affair, in which Renault says it may have been hoaxed into firing three executives, will make it harder to win government support for changes to an alliance with Nissan Motor Co., said the people. Renault wants to reduce its Nissan stake and allow the Japanese carmaker to vote as a Renault shareholder, they said, declining to be named because the matter is confidential.