Toyota & Honda - In reversal, now face massive hurdles Impact of strong yen, strategic missteps, natural disasters hurt Japan's once feared auto makers . An interesting article which details the challenges being faced by the companies . In Reversal, Honda, Toyota Now Face Big Hurdles - WSJ.com
Both Toyota and Honda have been hit by huge natural disasters which crippled their manufacturing home base as well as a prime manufacturing base like Thailand .
That aside , the rising Yen has made exports from Japan uncompetitive while at the same time profits from operations abroad have diminished due to the appreciation in the yen ( which is the home currency for both) which has slammed the companies further .
Last but not the least strategic slip ups like concentrated manufacturing base , being blindsighted to adverse currency movement, launching products not well received ( Civic 2012), and Quality problems ( like Toyota's sudden acceleration ) have meant that the companies are giving consumers a reason to switch to other brands !
My take is that Toyota is relatively much better positioned to come out of this unscathed because of its sheer size and product breadth , Honda's struggles are likely to continue months into the future.
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