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Saturday, April 19, 2008

The Toyota way or the Honda way

For a long time the toyota way was every automotive manufacturers dream.Everybody wanted to run their business in the toyota way so much so even hospitals adopted the toyota way.Those japanese terms seemed like magical potions to help run business efficiently.

But even Toyota is finding that during the bad times the Toyota way isn't necessarily the best way out.Toyota is facing a number of quality related issues something unacceptable in the toyota way.Toyota is facing the same problems the big three faced when they were at the top so how differently has the Toyota way helped insulate Toyota from these problems.Toyota's over emphasis on certain markets and neglect of some is perplexing.Just the other day I was reading wages at Toyota are comparable if not higher than the american manufactures and there is a significant strain on margins.The company which pionereed waste reduction is itself wasting resources in plants in America with a slowdown in production and the employees having nothing to do.

Now look at Honda it seems to be in the right markets at the right time and with the right mix of products.Enviorenmentalists are happy,car enthusiasts are happy and even your average car buyer is happy given the fuel efficiency and resale value of Honda's.Infact Honda dealers say in times of recession its best to stick to Honda's given these attributes.While every body is critical of the cheapness of the interiors of toyota's the same cannot be said of Honda's.

Toyota is now the evil big boy while Honda is the underdog and an environmentalists friend as well so image wise its Honda which is placed higher than toyota.

The biggest difference between honda and toyota is honda are gradually shifting to the premium car manufacturer tag.That means even in the times of rising input costs and lower demand for cars,honda remains relatively insulated from the problem.

For the long term if I were to bet between the two companies I would put my money on Honda.Toyota needs to Move Forward from this phase quickly.

2 comments:

Anonymous said...

I am glad to see that Honda is bringing us to the Deisel market. With the cost of diesel and gasoline high today it just makes sense (cents) to go for the 58/60 mpg diesel powered vehicles which should last at least 300,000 miles if broken in prperly. This one vehicle will cut my fuel bill at least in half by it's fuel sipping nature.
The Honda quality is very high. There are not many gasoline powered cars on the road that can give daily service for over 200,000miles in this day and age. It was driven about 800 miles across country and turned in on a new 2001model brcause the local dealer did not have the prticular model in stock. The transmission never failed during that time either. Does that say something about Honda QUALITY?

Shrawan Raja said...

22 to 23 lakhs is the estimated price of a CR-V diesel..will it pay off??

cheers

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