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All-New 2014 Toyota Highlander Hybrid – A more advanced interpretation (in each method) of the company’s current mainstream midsize SUV. Copyright © 2012 Autos Post, All trademarks are the property of the respective trademark owners. Honda and Toyota have fallen down in three areas: New Product Development, Total Quality Management, and Supply Chain Management. Once, Honda and Toyota were both considered the gold standard in terms of automotive excellence.
In the following three sections, I will describe how Japan’s formidable competitors have lost ground to their Korean adversaries. Since Apple ranked #1 in the Boston Consulting Group’s 2010 survey of the worlds most innovative companies, let’s examine Apple’s formula for success. It felt solid and sturdy, but the styling was boxy and dowdy. Immediately afterwards, I drove a Hyundai Tucson.
Not only was the styling beautiful, but also the interior of the Hyundai was contemporary and ergonomic. Another example of Honda design issues relates to last months introduction of the new, 2012 Honda Civic, which was widely panned in the press.
Akio Toyoda, CEO and grandson of Toyota’s founder, has acknowledged that his firm chased market share over quality during the last decade.
In contrast, the Koreans’ quality has risen substantially. This year, Hyundai and Kia ousted mainstays Honda and Toyota to take the #1 spot in customer loyalty. Second, as advocated in a recent blog post, all automobile manufacturers must evaluate and re-think their supply chain networks to mitigate against the risk from natural disasters.
Although Just-in-time (JIT) inventory control—or lean operations—has been a dominant global operations strategy, some of its precepts need to be challenged. Unlike the Japanese, the Korean auto companies are less reliant on suppliers in Japan and Thailand. Toyota and Honda can do a better job of evaluating—and modifying—their supplier networks in order to minimize risks. Consider also Honda’s inability to have adequate style and content to promote Acura as a seperate luxury division. Good write-up… being an Audi guy for almost 40 yrs (first one in 1973…) I figured that the design for Kia would start changing when they brought on Peter Schreyer !!!



I think some of the market share loss is due to the Tsunami as their inventories are just way down.
I also agree with your comment about the Tsunami, and its effect on 3rd quarter inventories of cars.
Hi Tim, I believe that for the most part when a company get big, they start getting cloddish.
1) The desire, having a good looking and finished car from outside 2) The need, it runs without stoppages for considerable time.
Actually Honda and Toyota are best selling cars for their performance, reliability, value and safety concerns. Business school professor, educator, consultant, blogger, writer, and hopelessly addicted tennis player.More.
A sleek look and feel—in addition to ease of use—is what distinguishes the company’s products. Although Honda is introducing a new 2012 version of the CRV in the near future, I wondered how could Honda’s management allow the company to become a design follower rather than the design leader?
Dan Neil, the Wall Street Journal’s auto writer, said it all: “The redesigned 2012 Honda Civic…is a dud. Honda had 113 suppliers that were located in areas that were affected by Japan’s March, 2011 earthquake and tsunami. Similarly, Lexus has not been able to establish a presence other than in the US and China because their models lack the look and feel of the competition.
I read in today’s paper that Lexus concedes that they will be overtaken by BMW as the #1 luxury car brand.
Honda needs to change #1-more agressive design.Like hyundai-spend a little extra$$ on look and goodies like bluetooth, HID headlights-not so expensive but so appealing. I agree that quality with Honda is ok, we own two Hondas, and they have been very reliable and maintenance costs have been low. When I took a test drive in the Kia Sorento, I realized that this car felt like the VW Passat that I once owned.
But to do so, they need someone like Peter Schreyer to lead their design teams in the right direction. The balance between need and desire: One creates another, when buyers have higher purchasing power their desire to have some features develops the demand in market or need but when purchasing power decreases your needs drives your desires. They have new concept coming already this year 2016 and in the future you should look that brand new design of Honda and Toyota. Profitable automobile manufacturing there has become difficult at best, impossible at worst.


Shortly after the earthquake, the company was unable to establish contact with more than 40 of them. Due to supplier shortages of components and sub-assemblies, both Toyota and Honda had to curtail production. 30, Hyundai and Kia did not experience component shortages due to the recent natural disasters. The main threats that need to be dealt with immediately relate to natural disasters and currency fluctuations. To right their teetering ships, they must radically reshape processes in three areas: New Product Development, Total Quality Management, and Supply Chain Management. Still, there are actions that Toyota and Honda can take to eliminate the shortages of components that both companies have experienced.
Lately, Honda has been failing to make that connection–and can only do by creating designs that delight consumers. Honda has been a great company for a long time and they are apparently falling behing in the innovation territory. During its growth phase under the leadership of Bill Gates, the price of the stock rose dramatically. Kia and hyundai were still looking for the better culture and understood the need of modern customers better in the process. When shopping for cars this summer, a sales manager told me that a major Toyota dealer in the western suburbs of Chicago parked their cars diagonally, because they wanted to hide the fact that their inventory of new autos was less than 50% of what it should have been.
Fresh companies like Hyundai are comprised of fresh hungry exec’s that want the company to suceed. However, as the company became a large behemoth, innovation languished, and Microsoft’s stock price hit a plateau, which it has been on for over a decade. Currently, the introduction of the 2012 Honda CRV may be delayed due to the flooding of Honda’s auto plant in Thailand.
The 2012 Honda Civic lacked basic features such as Bluetooth.” As a result of the criticisms received, Honda is responding by rushing a mid-cycle, re-design of the Civic to the market.



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