Honda Motor Co., Ltd. (HMC) will have a new President and Chief Executive Officer (CEO) from June. Meanwhile, Tesla Motors, Inc.’s (TSLA) Model S has retained its top position in this year’s Consumer Reports’ Top 10 Picks. The electric carmaker’s stock basked in a favorable Morgan Stanley review for a couple of trading sessions.
On the negative side, General Motors Co. (GM) is facing a labor strike at a Brazilian plant. Ford Motor Co. (F) also announced a new recall.
(Read last to last week’s recap here: Auto Stock Roundup for Feb 19, 2015)
Recap of the Week’s Most Important Stories
1. Honda has decided to promote its Managing Officer, Takahiro Hachigo, to the posts of President, CEO and Representative Director from late June. Hachigo will also hold the position of Senior Managing Officer from April. Meanwhile, the current President, CEO and Representative Director, Takanobu Ito, will become the Director and Advisor to Honda.
Takanobu Ito will also retain a position on the company’s board. However, the decision will be finalized by the company’s board of directors following the annual shareholders’ meeting in late June.
2. Tesla’s Model S has obtained the No. 1 position in Consumer Reports’ Top 10 Picks for 2015. With this, the Model S has been sitting on the top rung for two consecutive years. Another automaker occupying a bright spot in the Consumer Reports survey is General Motors, whose Buick Regal and Chevrolet Impala occupy the top spot in the sports sedan and luxury large car segments, respectively.
Toyota Motor Corp.’s (TM) Prius has been declared the best car in the Green car division and Highlander has emerged as the midsized SUV segment leader. Honda’s Odyssey has been declared the best among minivans (read more: Tesla's Model S Tops Consumer Reports Survey Again).
3. General Motors’ laborers in its Brazilian plant Sao Jose dos Campos, near Sao Paulo, are on strike. The employees are protesting to the automaker’s decision to dismiss some its workers and send others on unpaid leave. General Motors has requested for help from a labor judge on this matter (read more: General Motors' Layoffs at Brazilian Plant Result in Strike).
4. Ford has announced a safety recall for 538 service replacement steering gears that can break over time, leading to the risk of crash. These gears are possibly installed on Ford F-250 and F-350 Super Duty diesel vehicles of model year 2008–2010 in North America.
5. Shares of Tesla gained 3.5% on Feb 19, after a Morgan Stanley analyst provided an optimistic outlook on the electric carmaker. According to the analyst, the stock can reach a new record high by the end of 2015 if the Model X is launched per schedule and performs as expected. The analyst also believes that Tesla’s high capital expenditures should not be a major concern as the company has the power to revolutionize the auto industry.
In the long run, these expenditures should reap ample rewards for investors. However, the analyst pointed out that Tesla might have to borrow funds if it commits any error or does not curb its cash spending (read more: Tesla Gains on Optimistic Morgan Stanley Outlook).
Performance
Most auto stocks recorded small gains in the last one week. Tesla was the sole loser, although with a minimal decline. However, the electric carmaker has lost the most in the last six months. Meanwhile, AutoZone Inc. (AZO) gained the maximum in the last five trading sessions. For the last six months, AutoZone and Toyota are the joint holders of the top spot.
|
Company |
Last 1-Week Period |
Last 6 Months |
|
GM |
+1.8% |
+8.6% |
|
F |
+1.9% |
-4.0% |
|
TSLA |
-0.3% |
-22.2% |
|
TM |
+2.0% |
+18.9% |
|
HMC |
+0.2% |
-2.8% |
|
HOG |
+0.2% |
-0.5% |
|
AAP |
+2.0% |
+14.8% |
|
AZO |
+3.1% |
+18.9% |
What’s Next in the Auto Space?
Automakers will announce their U.S. auto sales figures for February on Mar 3. On the same day, Toyota will hold the world premiere of the new Lexus LF-SA concept and unveil the LF-C2 Concept along with the new models of Lexus GS F and Toyota Auris Hatchback, Auris Touring Sports and Avensis for the European market, at the 2015 Geneva Motor Show. Further, Penske Automotive Group, Inc. (PAG) will pay a quarterly cash dividend of 22 cents per share on Mar 2, to shareholders of record as of Feb 10.
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