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Why Honda and Toyota Are Slipping

Instead of taking advantage of U.S. automakers' woes in the past few years, the Japanese automakers let themselves slide.

By Claire_Martin Apr 9, 2012 2:09PM
Honda Civic photo by Honda.Formerly the Teflon Dons of the auto industry, Honda and Toyota dominated in innovation, quality and profits for the past 20 years. And when Detroit went into distress in 2008, it would have been reasonable to expect them to take advantage of things such as General Motors' downsizing to four brands from eight. But they didn't. And now Toyota's share of the U.S. market has dropped by nearly 3 percent since 2009, and Honda's by almost 2 percent.

"Ten years ago, Toyota and Honda had the lead and everybody else was behind," Dave Sargent of J.D. Power & Associates told US News & World Report. "That gap has narrowed to pretty much nothing."

Why the decline? The Japan earthquake of March 2011, which seriously disrupted the supply chain, is one reason. But also, Volkswagen, Hyundai and Kia have gotten more aggressive, while Toyota and Honda -- once leaders in customer service and safety -- have become complacent on those issues and others, according the report.
In 2009, 8 million Toyotas were recalled and the company was hit by a massive fine and several lawsuits. Honda, meanwhile, simply seems to have slipped behind the times. It debuted a redesigned 2012 Civic that failed to wow critics who had routinely sung its praises. For only the second time in the car's history, it didn't receive Consumer Reports' vaunted "Recommended" rating (nor did the Insight or CR-Z). 

Meanwhile, Detroit has pumped out zippy new cars to compete with the Japanese automakers' bread-and-butter vehicles. The Chevy Cruze and Sonic and the Ford Focus and Fiesta are new standouts in the field of small, inexpensive and fuel-efficient vehicles -- once the nearly exclusive purview of the Japanese automakers. At the same time, Hyundai and Kia are building cooler cars at a better price point than some of the stodgier models put out by Honda and Toyota.

But all is not lost for the Japanese pair. On the bright side, hybrid sales have been hot for Toyota so far this year, and Honda's new CR-V crossover has earned high points from critics.

45Comments
Apr 12, 2012 4:22AM
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@ thebeltway, do some research! the biggest recall in the auto world was from an american brand, the only reason toyota was bashed on was so other car brands can have a chance and sell there cars, the media helped with that,

 

American cars recalled, nor have I ever had my Mazdas, Nissans, Mitsubishis, BMWs or Volvos recalled

 

thay all have been recalled in the past you just dont want to see whats there.

Apr 11, 2012 11:26AM
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@Lloyd, almost everything you wrote is factually incorrect.  
Apr 11, 2012 10:42AM
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Lloyd, I'm lying about what? 

Cars break, regardless of make or model: true.

I worked in Toyota service: true, and I am still in the automotive industry.

I've personally owned 4 Toyotas, and countless others in my family: true ('89 Camry, '91 Tercel, '92 Camry, '95 Pickup)...I guess the only "lie" there is that I couldn't actually count the number in my family.  I just didn't care to.

My screen name indicates I have (or had?) a '94 Cadillac: true.  I've had 3 '94s, and a '93.  I've also owned Buick, Chevy, Plymouth, Lincoln, Nissan......off the top of my head.

American and other manufacturers' car quality has improved over the past couple decades while Japanese has stabilized or declined: true.

Yes, GM vehicles were junk in the 80s, as were most American cars.  Yes, GM has re-badged Toyotas (Nova, Prism, Vibe, etc.).  Toyota has also taken parts and technology from GM as part of those deals.  Get your head out of your ****.

Apr 11, 2012 10:25AM
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badass94cad,you're lying. Your ride is 94 cadillac.Gm have the back up of Washington,my son's Volt  is nothing but trouble. Your new car has been someone else new car. My wife has a 2008 Acura TL with 43000.00 miles and my truck a 2006 honda pilot with 85000.00 plus miles,i replaced my tires at 62000.00 miles   I used to work for Atlantic Pontiac,they went out of business back in 86,Gm build the worst vehicles in America. My question to you is: How many toyota or toyota that are powered by GM eng and tranny?GM are equipped with toyota and honda powertrain.Ford with Mazda,mercedes,volvo.Dodge+Chrysler with mercedes,mitsubitshi.They even rebadged them. Stop being an hater,we are living in a cooperated world
Apr 11, 2012 7:24AM
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Girlfriends 06 Camry 108k, and one of my best friends one of two Accords 189k,  Not one penny.  My 96 Toyota is not perfect, but it is far better in reliability than my 2005 Ford.

Apr 11, 2012 6:44AM
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Recalls are often some BS, while other widespread problems get swept under the rug...at least until enough people make a huge stink about it and the media jumps on board.  I won't even begin to elaborate, but anybody in the industry or remotely interested in cars knows what I'm talking about.
Apr 11, 2012 6:32AM
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Who cares about recalls? I would much rather have a recall than a breakdown from poor quality!!

For what it's worth I agree with you 100%.  You may or may not have noticed that I NEVER take part in the arguments over who has the most recalls.  I'm actually sick of reading those comments and I usually skip over them.  I could care less about who has recalls.  Recalls typically mean nothing and they are free.  Who cares?

 

I have personally only received three recalls (two domestic and one foreign) in my entire life and only ONCE did they actually have to replace a part (foreign).

 

I have based most of my purchasing decisions on cost of ownership, reliability (not recalls) and fun factor.  Because of that, I have landed in a domestic automobile far more often then an import.  That's just my experience.

Apr 11, 2012 6:14AM
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Who cares about recalls? I would much rather have a recall than a breakdown from poor quality!!

  Funny story IRN!
Apr 11, 2012 6:08AM
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@Badass94Cad,

 

It has a lot to do with how some people define a "problem."  A friend of mine is on her third transmission in her Accord.  However, if you ask her about the car she still says to this day that she hasn't had a single problem since she bought it.  When I inquired about the transmissions she was adamant that the transmission replacements "didn't count" because she "drives the car too hard." 

 

It makes you wonder, what other issues has the car had that "didn't count."

 

If problems from "driving too hard" don't count then I can also say that I have never spent a penny on a repair for any vehicle that I have owned. 

Apr 11, 2012 6:00AM
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I really love the comments from Toyota and Honda owners bragging about their car being recalled only 1, 2, or 3 times!  Yeah, that's something to be proud of.  Funny, I've never had any of my American cars recalled, nor have I ever had my Mazdas, Nissans, Mitsubishis, BMWs or Volvos recalled.
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