Honda and Toyota Driving Each Other Forward

Washington DC March 9, 2007; The AIADA newsletter reported that Detroit's automakers are fixating on Toyota as their biggest threat, but Honda, Japan's No. 2 carmaker, is also gaining marketshare.

As volatile gas prices are shifting U.S. consumers' interest to more fuel-efficient models, Honda is the only automaker with a fuel-cell car certified for U.S. retail buyers.

While Honda may not be growing as fast as Toyota, which has 15.4 percent of the U.S. market, it has expanded steadily. Over the past 10 years, Honda has increased its U.S. market share 50 percent to 9.1 percent.

With its image as an environmentally friendly company specializing in small cars, Honda arouses less antagonism than Toyota, which is on track to become the biggest automaker in the world.

The intense rivalry between Japan's two leading automakers has helped them become strong global competitors. "Honda and Toyota are very good competitors for each other," said John Mendel, senior vice president of Honda's U.S. sales arm, American Honda Motor.

This fall, the two Japanese automakers will take their fight to the midsize car segment when Honda rolls out a more stylish Accord sedan