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This is just my opinion, but I think both companies have superior engineers and automobile engineering, but in different price ranges. It would be hard to say one is *better* than the other. Volkswagen obviously, a massive, massive company, Honda likewise. I believe Honda/Acura is second to none in its attention to detail, ergonomically (interior) and mechanically. Even though theyre not into building high-end automobiles, the cars they do build are usually the best in the class or near so.
But you mentioned your order of importance. Looks are subjective, you either like the civic or the golf its a personal choice. Performance is a little more objective, you can look at numbers, and same with cost. I also think that because Honda doesnt have a high end car, it can build its range (low-mid price) of cars (Civics, Accords, Minivans etc..) to a very high standard. I wouldnt say the same about Volkswagens. I also wouldn't consider a Golf to be an example of 'fine German engineering' in the same way a Mercedes, Audi or Porsche would. You gotta shell out the big bucks to experience that sort of thing.
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