Shares in Honda (HMC) revved up today after rival Japanese automaker Nissan reportedly began scouting for a new boss.
Uchida Takes the Blame
According to a Reuters report, the Nissan board is set to meet next week to discuss potential successors to current chief executive Makoto Uchida as his position becomes “untenable” due to the company’s worsening performance. It is understood that Nissan may even look at putting in a caretaker manager, someone to hold the job temporarily before a permanent candidate is found.
It is not just the company’s performance that is being highlighted, it also comes in the wake of the collapse last month of talks to create a $60 billion company with Honda. Those discussions became mired in disagreements over the balance of power between the traditional rivals, with Uchida taking his fair share of the blame.
Deal Back in the Fast Lane?
It was reported recently that Honda might be interested in restarting talks if Uchida left the driving seat. Its share rise today could be an indication that some investors feel the deal, which would have created the world’s fourth biggest carmaker, may still have some miles on the clock.
However, since the collapse, Nissan has been looking elsewhere. Tesla (TSLA) was mooted as one potential answer in the form of a strategic investor, but the wheels soon fell off as its boss Elon Musk denied he had any interest. There is now speculation, according to Reuters, that Nissan could seek a tie-up with Taiwanese electronics company Foxconn, which has a nascent electric vehicle business.
Is HMC a Good Stock to Buy Now?
On TipRanks, HMC has 1 Buy rating.
