The Pendulum of Perception

“John Mendel, American Honda Motor’s executive vice president, told reporters he expects Honda to notch U.S. sales of 1.4 million vehicles this year, up slightly from 2007 and marking a 15th consecutive year of higher sales...

“Even modest sales growth in a year that’s expected to see total U.S. vehicle sales decline 3 percent — the worst since 1998 — is commendable, but if there’s one international automaker that can afford to show a little hubris, it’s Honda.

“The automaker could be called ascendant, boasting the most fuel-efficient fleet on U.S. roads and earning top marks in reliability studies, while its Accord sedan is the nation’s fifth-most sold vehicle, not far behind Toyota’s Camry and Corolla.

“The key to Honda’s success is an abundance of caution, said Aaron Bragman, an automotive industry analyst at Global Insight.

“‘They move slowly with design, development and product growth,’ he said. ‘They are very measured and they don’t take risks, and that is why you don’t see them having the same kinds of problems that Toyota is having with its expansion’ …

“Cracks have started to appear in Toyota’s armor even as it poised to overtake General Motors to become the world’s No. 1 vehicle producer. It has seen its reputation eroded by product recalls and slippage in consumer-quality surveys. Adding to Toyota’s woes are problems with its Tundra pickup — its first foray into the profitable U.S. truck market.

“‘There’s a perception-vs-reality thing going on here,’ said Karl Brauer, editor in chief at automotive research site Edmunds.com.

“After years of top rankings, Toyota’s position in the widely followed Consumer Reports Annual Car Reliability Survey has slipped. Last year... [the] J.D. Power Initial Quality Study showed Toyota losing ground to Honda.

“‘The interesting thing about Honda vs. Toyota is [Honda has] fewer products that sell much better — it’s really hard to find a dog in their lineup,’ said Tom Appel, editor of Consumer Guide Automotive...

“As Toyota stretches itself to become a full-line automaker, Honda has pursued a more conservative strategy, avoiding trucks, for example, said Bragman.

“‘Honda is very conservative not only in the technology it employs in vehicle designs, but also in its manufacturing,’ he said. ‘There are only a few configurations of vehicles, so they’re able to manufacture these things easily. They have serious controls in their systems; it gives them serious flexibility’.”

(“Honda’s deliberate path drives sales growth: Limited vehicle line, attention to detail keys to automaker’s success.” Roland Jones. MSNBC Interactive. http://www.msnbc.msn.com/id/22670395/ January 15, 2008)

TICK TOCK, TICK TOCK... from "Innovate or perish!" to "Control and execute," we swing to and fro from one solution to the next. In 4-5 years when this has run through its natural cycle, we will be off on the next big thing.

Although balance appears to be illusory, balancing can come as we seek center and ground.