• MSNBC, Wednesday, January 16, 2008 12:15 PM

Honda could be called ascendant--boasting the most fuel-efficient fleet on U.S. roads and earning top marks in reliability studies--while its Accord sedan is the nation's fifth-most sold vehicle, not far behind Toyota's Camry and Corolla. The key to Honda's success is an abundance of caution, claims Aaron Bragman, an automotive industry analyst at Global Insight. "They are very measured ... and that is why you don't see them having the same kinds of problems that Toyota is having with its expansion," he says.

Although Toyota and Honda both started selling cars in the United States in the late 1950s, Honda has often been overshadowed by Toyota. But cracks have started to appear in Toyota's armor, even as it poised to overtake General Motors to become the world's No. 1 vehicle producer. It has seen its reputation eroded by product recalls and slippage in consumer-quality surveys.

Citing a "perception vs. reality" gap, Karl Brauer, editor in chief at Edmunds.com, says that while Toyota has created a environmentally friendly image with its Prius, they've also been selling far more V8 engines than Honda.

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