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Honda: rejects mediocre

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At its core, Honda is a rebellious and alternative company. It is reluctant to follow the mainstream and disdain to play the second best in the market in order to be safe. However, its success is not inferior to Toyota whose personality is quite different.

Since 2002, Honda's operating income has increased by about 40%. Not only that, its operating margin of 7.3%-9.1% is also rare in the automotive industry. A report released by Honda on January 30 this year showed that In 2007, its global production and sales both set a new record. Among them, the sales of automobiles reached 3.767 million and the sales of motorcycles reached 13.476 million, with year-on-year growth rates of 6% and 7% respectively.

The lean manufacturing and the spirit of continual improvement process are considered to be the key to Toyota's success. So, what are the underlying factors of Honda's success?


Mountain climbing from the best route It should be said that Honda and Toyota, which are also deeply …