AOL Money & Finance

Battle of the Brands: Toyota vs. Honda

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

For two companies with similar backgrounds, Toyota Motor Corp. (NYSE: TM) and Honda Motor Co. (NYSE: HMC) have grown markedly different. Toyota has taken a vertical approach to become arguably the world's premier brand in combining high volume sales with high-quality products. Honda has taken a much more horizontal route, dipping its feet successfully into a wide range of products.

In 2007 Toyota passed Ford Motor Co. (NYSE: F) as the world's second largest auto manufacturer. However, some question whether this victory came at the sacrifice of quality; Consumer Reports, which had consistently rated the company's cars at the top of its quality rankings, declined to recommend many of its models due to concern about slipping reliability. Its secondary line of autos, the Scion, which is targeted to a younger driver, is still scrambling for traction in this crowded field.

Honda's horizontal approach has taken it into farm and garden equipment, lawn mowers, motorcycles, even airplanes and soybeans. However, four-wheeled vehicles remain its core industry. Toyota's quality stumbles have opened up the field for Honda's reliable, affordable if unsexy lineup. The new subcompact Fit has replaced the Civic at the bottom of its price structure.

Both have successfully integrated domestic production with imports, and have thriving dealer networks. Both are also racing into China, lagging behind GM but with ambitious plans in place to expand mainland manufacturing. This may well be the battleground on which the war is won or lost.

My take? Both companies have strong product lines and aggressive visions. However, I'm a believer in Honda's ability to find new niches, spreading its risk across numerous sectors. I'd be happy to own either (and I do own a tiny bit of Honda), but in this battle, I'm taking Honda in a photo-finish.

Vote in our poll for Toyota or Honda as your preferred brand, and let us know in the comments why you love it.

Get the latest on cars and trucks
from Ford and all brands at AOL Autos.

Reader Comments (Page 1 of 2)

Symbol Lookup
IndexesChangePrice
DJIA+17.4610,023.42
NASDAQ+7.122,112.44
S&P 500+2.671,069.30

Last updated: November 08, 2009: 10:10 PM

BloggingStocks Exclusives

Hot Stocks

Learn More About Ford Cars

Find Your Next Car

AOL Autos New Cars and Used Cars

DailyFinance Headlines

Latest from BloggingBuyouts

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

WalletPop Headlines