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.
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Reader Comments (Page 2 of 2)
5-01-2008 @ 12:15AM
KriesenT said...
Honda all the way. My family has gone from American cars where they found that they were frequently in shops, to Honda's and Acuras (within the past ten years) with the exception of two mazdas (mistakes and never again) and one Toyota. The Toyota is a nice car but repairs are very expensive and more frequent than Hondas. All in all I'd buy a Japanese car over an American car anyday as far as standards go. Japanese or Honda believe in quality products and take great pride in their quality products. All products regardless from where they're physically made are up to honda standards. My Husband co-ops with various Honda plants and has toured Toyota plants and is overall more impressed with Honda.
5-01-2008 @ 12:23AM
lynne kushnir said...
TOYOTA/LEXUS is the only car in the world for us. When I drive in the back seat of a Honda I get sick and the Odyssey drives like a boat. Toyota builds a lean machine and it may cost more than Honda but it is well worth it. Better gas mileage, insulation
and handling. There are just some people who are Honda/Acura and others who are Toyota/Lexus.
5-01-2008 @ 1:55AM
crvtecdude said...
Well, I've always been a die hard Honda fan, mostly because at least in the past, they've always been to me a better looking car, especially as they get older. When I see a ten year old Toyota, it usually looks old or dated to me. Hondas on the other hand, to me still seem to look somewhat with the times (to an extent of course, about ten years or so) and sporty. As far as quality, well they've both always been very good, reliable cars, and usually fun to drive as well. I work in the automotive industry, and regularly drive and disassemble and reassemble both of these brands. I have noticed the Toyotas seeming just a little bit "cheeper" as of late, and the Hondas seem to be loosing some of their "sporty" look in some of their models. All in all, I would still rate the two of them side by side at about the same level as each other, Toyota a hair ahead in quality of build, and Honda just a hair ahead in looks. But, you'd still see me driving a Honda, just from loyalty. And besides, they're both mostly built in the United States, unlike a lot of the "domestic" brands which seem to be mostly going toward Asian countries or Mexico for their manufacturing, with quite a few models not being their cars at all but asian cars with their label on them. :n(
5-01-2008 @ 5:23AM
Kathy said...
i have had two hondas and two toyotas along with 2 american made cars. i did love all four; but the toyotas were my favorite (celica gt & prius!). the hondas were in my opinion a little faster.. both had very good quality interior that lasted..as far as repairs.. its was similar..but a lot less than what i would have paid for an american made car. when i found that i wanted a hybrid.. i did go to honda.. but when i looked in the inside.. i found 90s technology.. and toyota it was the millenium! i am happy with my purchases.. but i would LOVE to buy american if the cars would last. i usually keep a car 10-15 years..
i cant put down the american auto unions (i am a member of similar union) for wanting enough money to sustain a living in the u.s. however, where i have a problem is i want quality-- i want it to last..if gm and ford had taken the time to come of with a car similar to the prius..i would definitely buy one.. i have heard good things about the upcoming saturn hybrids. i want a car that gets good power with excellent mileage. mileage has always been my no#1 priority. this is the new challenge to the american car manufacturers: give us a car with mileage and quality and we will buy american! we have always had the technology.. why not use it... look into the minds of the real consumer....we dont need all those excessive gasaholic powerful cars.. gas is headed for $4/gallon...
5-01-2008 @ 6:34AM
Jason said...
Ok look, Japanese cars parts (for the most part) are made in japan, and sent to north america for assembly. Ever wonder why the new mustangs can actually turn? Thank Nissan for that. Now i never actually owned a toyota, but tons and tons of owners have more problems with their cars than honda owners. I have a 06' Civic coupe and its been all over euruope with nothing more than an oil change and tire rotation. typical service stuff. Hondas have a very well reputation. Anyone that says honda is garbage because the dealer was mean and so on need to check their approach to people and not blame a whole corporation on your customer service treatment. The dealership, represent Honda, but they dont represent the quality of Honda's cars. The dealership i deal with "In Germany" are very nice, i treat them with respect, i dont go in their dealership and would never with an attitude if my tranny ever went bad because its not their fault. Remember one thing if you may. Not ever manufactured vehicle will come out perfect. Some will always be lemons regardless of who makes them. Ever thought maybe you just happened to have brought one of the lemon vehicles?
5-01-2008 @ 10:40AM
Dave said...
I think Honda, especially in recent years, has simply been building more consistently reliable and well-engineered vehicles. I still remember my Dad's 1997 Accord -- which lasted 6 years and 150k miles, until I got into an accident that sent me flying off a 50-foot embankment, into trees, flipping over, and totaled the car, crushing it into something that looked like it just came out of a scrap compactor. I managed to walk away with just a few scrapes, thanks to Honda's excellent safety design (and components that didn't break, and functioned perfectly). So I'll always feel some good will towards the company.
One thing that bothers me a bit about the past 5 years is the ground Honda has lost to Toyota on hybrid vehicles. Honda was a pioneer in the field, and has more experience with hybrid design, yet has lost out to Toyota in the race for recognition and market share. When you think "hybrid" you think "Prius," not "Civic that has the hybrid powertrain option." This was a BIG mistake and a lost opportunity by Honda.
I'm waiting to see if they can rectify this, so that when we come out of the current market slump, car buyers will think of Honda for fuel-efficient, high-tech vehicles as well as thinking "Prius" and heading to the Toyota dealership.
How Honda handles this will decide whether the company continues its steady but unspectacular tracking, or surges ahead as they should.
5-01-2008 @ 5:47PM
Louis said...
Honda,Toyota,,,produce jobs.
5-01-2008 @ 5:56PM
Louis said...
Hey,,,Nissan builds great trucks and cars..too.Love my Frontier.High quality vehicle.SE 4x4 a little rough on the ride,but that is to be expected for a 4WD.
5-01-2008 @ 6:02PM
Louis said...
Wrong! All of the top car and truck manifacturers are built here. Toyota,Nissan,Honda, Hundi. They are creating jobs,not running them off. If the greedy unions could be dumpted, then People would start buying domestic vehicles again
5-05-2008 @ 1:15AM
Lynnie C said...
I just bought a Toyota Scion DX. I asked the dealer about the Honda Fit and he told me the Hondas were also made in Japan. I bought the Scion which is really nice, but I also researched the Honda Fit and according to the site, they say Hondas are made in the USA. My point: I went to buy a Toyota which I thought was made in America. Hondas are made in America. Point of this comment: Don't go to a a birthday party then go buy a car. And yes, I was 100 % sober!
Which are made where?
5-08-2008 @ 9:11AM
lin said...
The poll is on Toyota vs Honda not your stupid comments about "foreign" made cars. My toyota was made in the USA not Japan or China.
I've had no problems with any of my Toyotas but my sister is constantly having noise problems with both her Honda's. The window seals in the front.
I think they're both good because of resale but tend to lean towards Toyota because of the Consumer reports rating and customer feedbacks.
And I do like my Toyota Sienna better than my sisters Honda Odyssey. A better ride, no window noise and the cushy driver seats :D
5-08-2008 @ 9:54AM
lin said...
Honda:
Lincoln, Alabama — Odyssey, Pilot, V6 engines
East Liberty, Ohio — Civic Sedan/Coupe/GX, Element, CR-V
Marysville, Ohio — Auto — Accord Sedan/Coupe, Acura TL, Acura RDX,
Anna, Ohio — Engines
Raymond, Ohio — Vehicle R&D
Indian Lake, Ohio — Automatic transmissions
Torrance, California — Vehicle R&D/design