Key insights

• ⚙️ Toyota and Honda prioritize minimizing incentives, fleet sales, and leasing to maintain higher resale values
• 💰 Toyota's limited incentives contribute to higher resale values compared to other automakers
• 📊 Toyota focuses on managing inventory, maintaining residual values, and prioritizing quality and reliability, which sets them apart in the automotive market
• 🏆 Toyota and Lexus top reliability rankings, High demand and resale value for hybrid cars
• 🔧 Toyota and Honda's manufacturing principles focus on reducing waste, improving efficiency, and prioritizing customer demand
• ⚠️ Toyota and Honda are facing major safety recalls, while also lagging behind in the transition to electric vehicles
• 🏭 Introduction of revolutionary manufacturing principles such as lean manufacturing and just in time production
• 🔄 Challenges and uncertainties in the auto industry amidst new innovations and consumer behavior changes

Q&A

• What challenges are Toyota and Honda facing in the auto industry?

  Toyota and Honda are facing safety recalls and lagging behind in the transition to electric vehicles. The auto industry is experiencing a shift with new players and innovations, posing challenges for traditional manufacturers amidst the rise of Chinese manufacturers and the advantages of software-defined vehicles.

• What are Toyota and Honda's manufacturing principles?

  Toyota and Honda's manufacturing principles focus on reducing waste, improving efficiency, and prioritizing customer demand. They emphasize quality, durability, and cost control while incorporating new technology at a slower pace.

• Why do Toyota and Lexus cars have high resale value?

  Toyota and Lexus cars top reliability rankings, have high demand for hybrid models, and focus on building cars with high demand, contributing to their high resale value. Automaker profits are modest due to high fixed costs.

• What sets Toyota apart in the automotive market?

  Toyota focuses on managing inventory, maintaining residual values, and prioritizing quality and reliability, often abbreviated as QDR. The company's culture emphasizes customer satisfaction, continuous improvement, and relentless kaizen (improvement).

• How does Toyota maintain its high resale values?

  Toyota prioritizes minimizing incentives, fleet sales, and leasing. The company's limited incentives and lower fleet sales contribute to higher resale values compared to other automakers. Toyota's sales and production planning focus on maintaining inventory levels on dealer lots without excessive incentivization.

• What makes Toyota and Honda cars hold their value well in the used car market?

  Toyota and Honda cars maintain high resale value due to strong demand, customer satisfaction, and a focus on quality. Both brands minimize incentives, fleet sales, and leasing to preserve higher resale values compared to other automakers.

• 00:01 Toyota and Honda are known for their reliable and durable cars that hold their value well in the used car market. Despite being called 'boring', their vehicles maintain high resale value due to strong demand, customer satisfaction, and a focus on quality. Both brands have received numerous awards for their vehicles' resale value and hold their position at the top of the market.
• 02:18 Toyota and Honda prioritize minimizing incentives, fleet sales, and leasing to maintain higher resale values. Toyota's limited incentives and lower fleet sales contribute to higher resale values compared to other automakers. This approach has allowed Toyota to become the number one selling nameplate in the United States automotive industry.
• 04:28 Toyota focuses on managing inventory, maintaining residual values, and prioritizing quality and reliability, which sets them apart in the automotive market.
• 06:42 Toyota and Lexus cars top reliability rankings, sell well in the hybrid market, and have high resale value. Automaker profits are modest due to high fixed costs. Toyota and Honda focus on building cars with high demand, following a tightrope walk in manufacturing.
• 08:51 Toyota and Honda's manufacturing principles focus on reducing waste, improving efficiency, and prioritizing customer demand. They emphasize quality, durability, and cost control while incorporating new technology at a slower pace.
• 11:10 Toyota and Honda are facing major safety recalls, while also lagging behind in the transition to electric vehicles. The auto industry is experiencing a shift with new players and innovations, posing challenges for traditional manufacturers.