Summary
The results of a strong brand are evident here. Honda is well known for reliability, quality and economical engine performance as well as clean operation. Honda's growth is due to consistently improving its products. Their focus is not growth for the sake of growth. Their growth and overall business performance comes from finding ways to expand the product line by producing multiple models on a single assembly line. Chrysler has consistently offered the lowest value to the consumer. Hence the consumer does not crave Chrysler products. Chrysler is the least effective company when they are measured for the number of vehicles per assembly line. Therefore, they are the least efficient in terms of asset utilization.
Analysis
Honda has demonstrated a long term approach to the transportation industry. They have built a strong vehicle brand based on reliable, quality products. Their engines are both economical and environmentally friendly. Consequently, consumers are ready and willing to buy their products. When their new minivan first appeared many buyers only had to know that it was a Honda product.
Honda's manufacturing efficiency is aimed at highly competitive cost and high quality. They build three to five different vehicles on the same line meaning high asset utilization and reduced variability that contributes to better quality. There is little "badge engineering" where three to five vehicles with the same features are built using different name plates and adding higher costs to market sell, service and support the products.
Chrysler seems to lack a focused product strategy. For example, there are so many Jeep models out there now, some of which are not even Jeeps - what is a "Compass"? Consequently, the customer is confused, the products are not profitable and the quality is not competitive. It is no surprise that Honda will pass Chrysler in build volume in North America.
