The Nation's Best Car Company Is Not in Detroit

It’s a little bewildering that taxpayers have been forced to shuffle billions of dollars into Chrysler and General Motors (GM: 1.14*, +0.00, +0.00%) when there are profitable, innovative and successful car companies out there — ones that don’t simply make better investments but also better cars.

With a market capitalization of $50 billion dollars, roughly 50 times the size of GM, I believe the best car maker — and car stock — is undoubtedly Honda (HMC: 29.11*, +0.57, +1.99%), whose Accord was the top-selling U.S. vehicle in April.

Before the flag wavers start griping about the importance of “buying American,” consider that Honda was the first Japanese firm to build cars in the U.S. starting 50 years ago. The impact has been overwhelmingly positive: According to a study from the Center for Automotive Research, more than 367,000 private sector jobs and $17 billion in annual wages are generated thanks to Honda’s U.S. operations.

Nobody makes a fuss about buying televisions made in Korea or coats sewn in Mexico. And if you lament the decline of the big three domestic auto makers, remember that, like Wal-Mart, it's American consumers who’ve made Honda a success in America. The automotive space is extremely competitive. Honda’s success is based on the company’s brand, high-quality production and diversity of products, precisely why there’s a good chance one of them is sitting in your driveway right now. Of course, Honda’s business is bigger than cars. The company also makes motorcycles, engines, robots…and even airplanes.

That’s why the president’s recent suggestion that, “If you are considering buying a car, I hope it will be an American car,” misses the wholly-beneficial reality of free trade. Honda’s success in selling cars in America has enriched the Honda Corporation but also the consumers who’ve bought them, employees who’ve made them and shareholders who’ve invested in them. Unlike a bailout or subsidy, trade is not a zero-sum game.

Last year, the company broadcast an inspiring, first-of-a-kind three minute advertisement on British television that showed a skydiving team forming the letters “H-O-N-D-A” live as they plummeted over Spain.

Just months later, Chrysler was reduced to taking out stark, black, full-page ads in major newspapers thanking America for its “investment” (read: involuntary bailout) in the company, which, as we pointed out last week, is essentially already gone.

An innovative and outstanding company, Honda’s soaring success should be commended. And for a long-term investor looking a few years out, I consider the stock an unequivocal “buy.”

Source;
http://www.smartmoney.com/Investing/Stocks/The-Nations-Best-Car-Company-Its-not-in-Detroit/

Honda Automobiles- One of The Best On The Market

Believe it or not, but Honda makes some of the best automobiles in the world. Consumers reward that by making Honda autos the most purchased automobiles in many classes. These automobiles have some of the best engineering in the world, along with some of the best manufacturing standards. That’s even compared to more expensive automobiles in the same class. Honda can be described with the phrases well built and great reliability.

The Civic is one of Honda’s excellent vehicles. This model comes in highly popular sedan, coupe and even hybrid versions. The Civic ranges in price from around $15K to the mid 20’s. The Civic is also tops in gas mileage. 36 MPG highway for the coupe and sedan is only surpassed by the hybrids 46 MPG. The hybrid ends up being more expensive over time because the battery must be replaced after a few years.

This car also has one of the best resale values around. People who buy them new are often pleasantly surprised when it comes time to sell or trade in for a new model. When the maintenance schedule is followed someone could sell the old Civic every few years and buy a new one for only a few thousand more. For people who like driving new automobiles all the time, that’s a great deal.

Many people like to hold onto their car. The same features that make resale value so high also make this car a good candidate for long term service. Following the maintenance schedule is important. The Civic can run for 20 or more years if it’s well cared for. That’s a long time. It gets to be your friend, not only your car. And there are a lot of other things to do with money other than buying or repairing vehicles.

Another nice Honda car is the Element. This small sized SUV is a real bargain. Adventurous people find this car a perfect fit. It has rubber throughout the interior. This isn’t just done to save costs. Easy cleaning was the goal. Feel free to let the kids get in when they’re muddy, you can wash it down with a hose. Yes, a hose, inside the car. That can’t be done if the dash is fancy wood.

The popularity of Honda automobiles is well placed. It comes from quality. Think about a Honda for your next car.

Source;
http://www.icar.nl/honda-automobiles-one-of-the-best-on-the-market-1162