Battle of the Brands: Toyota vs. Honda

4/29 - "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...Honda's horizontal approach has taken it into farm and garden equipment, lawn mowers, motorcycles, even airplanes and soybeans...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."

"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."