But is Honda a good stock to buy at the current price? Sadly, the linked Barron’s article is not open to non-subscribers, so I cannot check whether the article’s reasoning is at all compelling. (Apart from the part about Honda having great product, which by no means is a reason to buy a stock). Also, I have no idea whether the article provides any financial data as to whether the price is right. So, I have to say I am disappointed.

I think Honda’s greatest strength is the corporate culture. They are conservative (in the sense of prudent and cautious) in their decisions.

They don’t jump on the latest fads. It took them years to produce a minivan, an SUV (rebadged Isuzus notwithstanding), or even a V6 Accord. Yet, when they finally did enter those markets, their products were among the best-in-class.

They let other companies work the bugs out of leading-edge technologies (6+ speed transmissions, direct fuel injection, keyless start, etc.) before adopting them. But they are quick to recognize elegant solutions (VTEC, Integrated Motor Assist, double-wishbone suspension, etc.) and bring them to market at an affordable price.

Furthermore, Honda is accustomed to working in a capital-poor environment. The other Japanese automakers (and their keiretsu) tried to squash Honda in its early days. The memory of trying to build the business with every bank saying “No” is ingrained in Honda’s management style.

I don’t know enough about Honda’s overall finances, nor just how large our current economic crises will get, to assert Honda is a guaranteed ‘winner’. But Honda is likelier than most to come through in good shape.

But anyhow, if I has a spare $22 today, I’d still put it into HMC. Their basic business – Civics, Accords, CR-Vs and Fits is solid, with each of those vehicles #1 or #2 in class. Interesting product introductions — the Insight, diesel and X6 clone — are on the way. And if Acura ever gets its styling act together, it will be a formidable competitor in entry luxury, which is where the action is.

And besides, they’ve always played David to Toyota’s Goliath, and you gotta root for the underdog.

Honda is a model company.

In some places, motorcycles are the primary form of transportation rather than cars (i.e. Honda Super Cub).

Also, as an interesting tidbit, Riverside County code enforcement uses Honda motors to pump green stagnant water out of abandoned pools in foreclosed homes. It’s not just “lawn equipment” Honda does, but more like power tools.

Reg $1.71
Plus $1.81
Diesel $3.04

It’s interesting to compare the lot contents of the local Honda vs. Toyota dealers. Honda can not keep a Fit on the lot, and has very few Civics with 4 doors and automatics. Toyota, on the other had, had 14 Yaris last weekend and too many Corollas to count. Even the Prius herd is mounting in number. Now up to 6 with 3 being there for over a month.