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.











Reader Comments (Page 1 of 2)
4-30-2008 @ 9:59AM
bobvisblog said...
Honda's horizontal approach has taken it into farm and garden equipment, lawn mowers, motorcycles
Actually, Honda was making small-engine products before they ever produced cars. Motorcycles came solidly before cars ever did.
4-30-2008 @ 8:23PM
notsip said...
neither one is a good deal when you consider that buying foreign products is why american jobs are gone and we are heading for a recession.
4-30-2008 @ 8:45PM
Dick Cote said...
I just bought a Honda CRV. I looked at the Toyota RAV4 but reading the owner reviews I noticed that owners had been complaining about the direction of the rea door opening (left to right) for over 5 years and Toyota had not made this simple change (very arrogant of them). Honda made the change after their first model was introduced (very responsive). Also on the current RAV4 you get a little cheesy radio antenna stuck on the right front fender that looks like a bent coathanger. Also when Honda breaks down (seldom) it is much cheaper to fix. I have owned 1 Toyota and 5 Hondas.
4-30-2008 @ 8:45PM
Frank Snell said...
If the American companies and the autoworkers unions hadn't been so greedy, and had spent more time in developing good products, maybe Americans would buy American. For years, the unions made demands, the companies met them, figuring the public would gladly fork whatever price they (the public) had to, the Asians & the Europeans wouldn"t be eating our lunch now. When you get to the point the people who make themare the only ones who can afford them, you gotta problem.
4-30-2008 @ 8:51PM
robert borland said...
Niether! Everyone knows it is Baseball,Hot Dogs ,Apple Pie,and Chevrolet!
4-30-2008 @ 8:55PM
Fern said...
We leased a Toyota Prius at the end of Jan. '08.
While we are a two car couple, we almost fight about who is going to drive this car. The milage per gallon aside, Toyota's technological engineering, and exterior styling puts this vehicle at #1 in my book. They thought of everything! We choose package 5 which includes the GPS. We looked at and test drove the Honda Civic hybred. Not impressed at all compared to the Prius. The Civc was a nice sedan, but thats about all I can say
4-30-2008 @ 8:56PM
Fern K. said...
Some foreign cars are made in the USA. Do you know which ones?
4-30-2008 @ 9:04PM
Bob Benson said...
actually wouldn't own either one of them - and I've had some of each. Overpriced, overrated, oversold cars that are no better than most cars out there..thye just hide any of the re-call or problems areas that come up. Ask toyota 4 cylinder folks about the oil sludge problem, or honda for the front bearing problem.....!!!!!
4-30-2008 @ 9:06PM
ray said...
I'm a true believer in Honda. I currently drive one now which makes it my fourth and will soon purchase another in June. All the Hondas I have owned have had over 200,000 miles and have only minimal repairs mainly due to ny poor driving habits. I think manufacture a superior product and all I can say is Go Honda!!!
4-30-2008 @ 9:14PM
catharina said...
TOYOTA ROCKS!!!
4-30-2008 @ 9:16PM
jimmie said...
buying "American" does not mean what you think. I bought a 2002 Toyota that was built in Kentucky and a 2006 Ford F-150 that came from Mexico. So tell me which vehicle is American??
4-30-2008 @ 9:29PM
Bob said...
My 2000 Chevy at 107,000 Miles is on its 3rd engine, My Toyota Avalon at 103,000 Miles has only had a fuel sensor replaced, both are made in America, so the math is easy to do. I gave up on American cars, when they stopped building them like they used to, years ago. The Avalon gets 29 MPG on the road, and has all the comforts the Prius lacks, and should fare better in an accident should that ever happen. Lots of protection is better than wishing you had it, just to save a few bucks on gas. If you look at the MSRP on the Avalon vs the Prius, they are nearly he same. For each their own and enjoy your ride.
5-01-2008 @ 12:41AM
Cory said...
Notsip's comments about sending jobs overseas makes no sense. Toyotas and Hondas both are built in the U.S., and the companies employ tens of thousands of American workers. My "American" Chevy truck, on the other hand, was made in Mexico, and my dad's Ford was built in Canada. There are no entirely American-built cars anymore, and virtually all "foreign" cars are built in the U.S.
4-30-2008 @ 10:20PM
ff100 said...
Well, the funny part is that most of the Japanese cars are built in USA and contain many US made parts. I owned 4 Honda made vehicles and 1 Toyota made vehicle. We've spend repairing the Toyota much more then the 4 Honda's together. From my own experience and from of friends and colleagues that own Toyota cars, once or twice per year Toyota owners are in the shop for mostly minor repairs that are expensive. For all 4 Honda's I've owned (300,000+ miles combined) I can count the actual repairs on the fingers of one hand. I believe that Honda's reliability is superior to Toyota. Honda maintenance cost is also lower than Toyota. In long run is cheaper to own a Honda than a Toyota. All that being said, is Honda the perfect car ? No, but most likely your best bang for the buck.
4-30-2008 @ 10:58PM
RealGuy said...
I've had 4 Honda cars, a Honda Odyssey minivan, and a Honda CBR 900RR motorcycle. Out of the 40 something wrecks I've been in and literally millions of miles I've driven, the 6 Hondas, the Volvo, and my Nissan 240Z have been the very best vehicles I've ever driven. I should've been dead when I hit an Olds Cutlas Sierra station wagon head on at 80 mph with no seatbelt in my Civic hatchback and I'm alive to tell about it. I've never personally owned a Toyota; though I would kill for a Supra twin turbo. I'm currently driving my second Ford F-150 that is on the second motor with less than 100 thousand miles and I would gladly pay someone to steal it and drive it off a cliff since I've been upside down in it since the day I drove it off the lot. Hondas are ugly and stale and offer no thrills at all unless you have an S2000 but they are by far the best bargain in the automotive world other than a Volvo. The Honda's much cheaper to maintain.
4-30-2008 @ 10:58PM
RAC55 said...
I don't know what Bob Benson is talking about. I had a 1981 Toyota Hilux 4X4 pickup I bought brand new, and put over 300,000 miles on it. The only thing I ever replaced on that 4 cyl motor was the cap, rotor, spark plugs, and fan belt. It still had the original hoses on it when I sold it 12 years later. And no sludge in the motor. I made the mistake after of buying a Ford F-350 diesel in 1993. 13 times in the shop in 2 1/2 years. Went back to a Toyota Tacoma in '96. No problems since. The '81 was built in Japan, and the '96 was built in the U.S.
4-30-2008 @ 11:00PM
Web said...
TOYOTA only for the local sevice department.
4-30-2008 @ 11:04PM
RealGuy said...
As an afterthought...my next car will be a BMW 5 series.
4-30-2008 @ 11:33PM
Elaine Snell said...
I have owned three Hondas, a 1996 Hatchback Civic I drove 160,000 miles with only one minor repair in addition to regular maintenance. Bought another Honda Civic in 2006. I find these cars to be sturdy and hold to the road well in all sorts of driving conditions. The 2006 gets 35.7 mpg.
6-10-2008 @ 11:19PM
Diane said...
Honda - huh, I will never own another one! I originally purchased it with the belief that they stand behind their products (TOTALLY UNTRUE) and Hondas go 200,000 miles with only oil change maintenance...total rubbish!! My transmission went (under 100,000 miles) and although they were totally aware of recalls on the trannies, they refused to do anything about it. On top of that, I got a total runaround, and the customer service I received was rude and arrogant. What the dealer offered me was a joke...they offered to repair it for $3,200.00 with a "rebuilt" transmission from someone else's defective parts..they don't care about the customer or stand behind their products. They should spend more $$ improving their products, instead of spending so much on advertising to sell them!