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Acura: Future Plans

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#1 ·

Date: December 12, 2011 01:25
Submitted by: Jeff
Source: TOV News
Credibility Rating: Not Specified


Following the raftload of information coming from Honda out of the 2011 Tokyo Motor Show, Acura hosted a select group of media for an unprecedented Strategic Briefing Session in Las Vegas on Friday December 2, 2011. We were privileged enough to have been invited to this session. Going into the briefing, we were expecting to see the new concept for the "Super Sports" model that Acura and Honda have been developing, and also the "sub-TSX" model. Acura not only showed those to us, but they opened up even further on their future plans. I can say that for the first time in a long while, we came away from an Acura briefing feeling very optimistic about the future.

During this Strategic Briefing Session, Acura shared much of their product strategy going forward. "Smart Luxury" continues to be the mantra, but suddenly, in the context of the new vehicles in the pipeline it makes a lot more sense. The model strategy is centered around a 3-sedan lineup running in parallel with a dual-CUV offering. In contrast to the 3 current Acura sedans, the new lineup of sedans will (finally) have more clearly defined differences in size and class.

New Flagship (Legend?)- late 2012
At the top of the sedan lineup is an all-new flagship. Acura says it will define "smart luxury" because it will offer best in class rear legroom, but will be sized smaller on the outside to many of it's "flagship" competitors. Vicki Poponi, Assistant Vice President, Product Planning put it this way: "Think about 7-series cabin space, with the agility of a 5-series vehicle."

What we found notable was the fact that Acura referred to it as the "successor to the RL". We have heard for a few years that Acura might possibly be reviving the "Legend" nameplate with this model, but if that's what they are truly planning, there was no mention of it at this meeting.

Several images of this new flagship were projected on the screen during the meeting, and it bears a fairly strong resemblance to the current RL, but the styling is wrapped around what appears to be a scaled up package. It's a conservative and clean design, not offensive but not particularly striking, either. It looks a little more muscular than the current model, and the wheelbase appears to stretch a little longer within the length of the vehicle, which improves the overhangs somewhat, but there are still moderate overhangs at each end. The C-pillar is punctuated by a Hoffmeister kink, which may turn into a new family trait (see ILX below). One new design element that stood out was exhaust finishers that were integrated within the lower rear bumper.

The new flagship will feature the electric SH-AWD system that Honda announced a couple weeks ago, promising V8 performance and "better than inline-4 cylinder" fuel efficiency. Acura will be introducing this car at the 2012 New York Auto Show and it will hit showrooms later in 2012.

RDX - mid 2012
Acura also gave us a teaser of the next-generation RDX, showing several images of redesigned crossover, and also sharing some of the changes that are in store. Again, quoting Vicki Poponi: "The all-new RDX will have a V6 engine that delivers more hp than our current 4-cylinder turbo, yet, it's also much more fuel efficient, which addresses some of the factors that led customers really to pass on the RDX. We expect RDX to offer best-in-class fuel economy in this segment. The all-wheel-drive system is also new, replacing the SH-AWD with a lighter weight system that provides performance and the safety benefits that the customers really want, without really adding all the extra weight of that very heavy system, and also the cost which hit both the pocketbook of the customer and also the fuel economy."

From the photos we were shown, the RDX bears a much stronger resemblance to the MDX, which (in our humble opinion) is a good thing. The roofline now more closely matches the MDX, especially in the C-pillar area, and like the MDX, the greenhouse is rimmed with a thin strip of chrome. The front of the new RDX has a slightly bulkier look than the current RDX, and the "chinless" look is a thing of the past. Apart from the (toned down) power plenum grill, there is considerably less brightwork in the front of the RDX than the MDX - and the RDX's lower trapezoidal openings in the bumper also serve as the foglight openings. From the photos we saw, the rear of the vehicle has a bit more of a "flat" look, mostly due to the hatchback being pretty much flush with the rear bumper. Look for the new RDX in showrooms later this spring or early summer.

NSX (Concept)
Alongside the flagship, a new "super sports car" shares the role as the range topper for Acura. Acura didn't officially call it the NSX during their presentation, but everybody we spoke with following the presentation said it was indeed the NSX successor. I took that as good news. UPDATE: In their press release released this morning, Acura is calling it the "NSX Concept". Some text below is updated to reflect that.

Acura showed us the actual NSX Concept which will be revealed in Detroit next month. Unfortunately there was no photography allowed, but I can tell you that this will be one of the biggest reveals for Acura in recent history. Basically this is the car that was spied on the "Avengers" set late in the Summer, but it's clearly been further developed and it's also in hard-top form. Finished in a sliver paint, the concept is absolutely stunning, and carries on the NSX tradition of a mid-engine, rear-wheel drive layout. The design is muscular, futuristic, and sharp, and vaguely similar to the Audi R8.

Compared to the "Avengers" car, the front end on this concept actually has working LED headlights - there are 5 "squircle" projectors embedded within each headlight housing. The rear bumper is also virtually identical to the "Avengers" car but with a real roof and backlight and more "production-looking" taillights, the overall visage is considerably different. Like the "flagship", the exhaust finishers are integrated into the bumper. A really cool (but not necessarily original) styling element is the "flying buttress" C-pillars. The C-pillars feature a "pass-through" which appears to be designed to channel air smoothly around the cockpit and over the rear of the vehicle. It's like an elongated version of the flying buttress seen on the Ferrari 599 - the NSX has a much faster angle on the backlight, which naturally lengthens the C-pillar. The gap between the C-pillar and the glass is fairly narrow, however. For the record, this concept wore Michelin Pilot Super Sport tires in 255/35ZR19 size up front, and 275/30ZR20s in the rear.

Acura wouldn't tell us anything about the engine or powertrain, but off the record they were quick to tell us that the announced Electric SH-AWD system with 3.5L DI V6 was clearly not potent enough for this car. It should be noted that THAT powertrain, with its 7-speed dual clutch gearbox and 3 electric motors, develops a peak output in the neighborhood of 400hp. Obviously with the MR layout, Honda has to engineer a very specific setup for this car, and we're assuming it will essentially be a reversed layout compared to the FF-oriented design which was revealed previously.

We are hopeful that it will receive a very special high output, high revving gasoline engine that is fitting of the NSX heritage, while leveraging the electric motors and onboard battery to deliver on the "smart luxury" promise of excellent fuel economy.

Acura ILX (long-rumored "Sub-TSX" model)
It feels like it's been an eternity since we first heard about it, but Acura finally revealed this long-rumored "Sub-TSX" model. First, Acura projected some photos of the ILX up on the screen and to be honest, it really didn't look that great in photos. It's a good thing they eventually showed us the car in the sheetmetal because it looks much better in person. The key design element that stood out to me was a pronounced crease starting in the doors and curving up over the rear wheelwell. I'm assuming it was intended to lend the car an image of strength, but I felt that it comes across as a little bit overdone. Also notable (and possibly a little overdone) is a Hoffmeister kink in the C-pillar. Otherwise, it's a good looking vehicle, with finishing details that give it a nice European (yeah, mostly Audi) look and feel. The ILX features a relatively long nose and a stubby rear deck and a high beltline. The front doors are fairly long - almost like a coupe, while the rear doors appear considerably shorter. The taillights are clearly Acura shapes, but for some reason when I was looking at the rear of the car I kept getting a little bit of an Audi A5 vibe. The general proportions probably reminded me most of the previous generation Mazda 3. The prototype had appropriately sized wheels which filled up the fenderwells very nicely. While our assumption is that this car is based upon the Civic platform, Acura never mentioned it, and from the styling and proportions there is essentially no hint that this car is related to the Civic. Acura announced the basic powertrain specs, confirming the rumors that it would be offered in hybrid form (1.5L IMA). Additionally, for those seeking an automatic transmission, the ILX will be offered in a 2.0L 4-cyl flavor (for now we're operating on the assumption that the engine will be an R20), and for the more sporting-minded, a 6-speed manual will be offered, paired with a 2.4L 4-cylinder. Beyond these basic specs, Acura would not comment on power levels or anything of that nature. We're expecting this car to hit showrooms in late spring or early summer of 2012.

Future of the TSX
There have been rumors that the TSX would be going away once the ILX is introduced. And depending upon how you look at it, those rumors could be considered true. Now that Acura has stated the "clearly defined" 3-sedan strategy, one of the 4 models has to go. While it wasn't directly confirmed that the TSX would be eliminated, we were told that something would obviously be slotted somewhere in-between the new ILX and "flagship" sedan. Will it be the TSX or the TL? It seems like it will come down to semantics, as whichever vehicle eventually fills that middle slot will be something different from both current TL and TSX models.

Acura has been getting beat up online (here, and elsewhere) for quite some time, and for now it seems like their response is measured and strong. If they follow through on their plans and deliver on their promises, the future of Acura appears much less cloudy than it did even a month ago.
 
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#2 ·
Canada


Things have been quiet on the Acura front in recent years.

A lack of new product, fresh competition and parts shortages caused by the tragic tsunami and earthquake in Japan and flooding in Thailand six months later, has laid waste to a planned increase in sales for 2011.

But with 2012 around the corner and production back to normal things are looking up for Honda’s luxury division.

Not only is there new product in the pipeline, there is a new philosophy. At the recent Tokyo Auto Show, Honda chairman and CEO, Takanobu Ito, expressed his disappointment in Acura.

"To be very honest, I’m not satisfied with Acura," he said. "Something has to be done to help it stand out, to be more unique and return to the sporty image it had when there was the Integra and NSX."

The previous day, at Honda’s R&D facilities in Motegi, a couple of hours northeast of Tokyo, I had been given a glance into the future, a variety of prototypes which showcased innovation and driving dynamics that would indeed be a nice fit for vehicles on the ‘sporty’ side of the road.

And 2 days later, halfway across the globe in a secure Las Vegas hotel ballroom a half dozen Canadian auto writers watched as the wraps were pulled off 2 new Acuras — a new entry-level model coming in 2012 to replace the CSX and a stunning new NSX concept. With these as a backdrop, Jerry Chenkin, executive vice-president of Honda Canada, outlined plans for a resurgent Acura.

"The company began to re-evaluate Acura about 5 years ago," he said.

At that time a V10 supercar was in the preliminary planning stages.

"But then the realization struck that Honda — and Acura — were about efficiency. That’s where we could capitalize on our abilities."

The big V10 project was cancelled and development began on a new generation NSX, a sports car capable of similar performance with the emphasis on light weight and technology.

"If we were going to express sporty, we also needed to express efficiency. That is something Honda (Acura) should do," Chenkin said.

Social responsibility and environmental responsibility are Honda goals. The plan for Acura is to follow that path to achieve greater relevance in the luxury market. A new game plan was taking shape — vehicles that showcase environmental responsibility, meeting the wants and needs of luxury car buyers, while avoiding excess.

It all starts in a few months. 1st with the unveiling at the Detroit Auto Show in early January of 3 new Acuras — the production version of the ILX, the next NSX and a heavily redesigned RDX.

The ILX is larger than the CSX and will be built in the U.S. The new entry point to the Acura line is no longer a mild makeover of the Civic, but an entirely new vehicle. It will come in 3 trim levels, starting at just under $30,000 and include the brand’s 1st hybrid.

We’ll drive and report on it late March and can expect it in Acura stores this spring. The new RDX will come along at about the same time.

A new flagship sedan — the replacement for RL — will be next. The development team says that while the competition is achieving roominess by making cars bigger, Acura will offer a full-size, luxurious cabin in a mid-size car. The RL will also introduce new key technologies, including a ground-breaking SH-AWD system.

We had driven this setup a few days earlier at the famed Twin-Ring Motegi race track. The test vehicle had a 310-plus horsepower V6 engine with direct injection driving the front wheels and a pair of small, but powerful electric motors driving the rears.

Acceleration is awesome with all that torque available from launch and 4 tires to get it to the ground. But the truly tricky part comes from the electric motors in the corners.

One applies power to the outside rear wheel, helping push the vehicle in the intended direction while the other applies negative power to the inside wheel, tugging the vehicle into the corner.

Add to this a 7-speed, dual-clutch automatic gearbox with wheel-mounted shifters and you’ve got a high-performance sedan that accelerates like a big block V8, loves the turns and sips fuel like a 4-cylinder if you can behave.

The new NSX will probably arrive in 2013 with that same powertrain combo — reversed (the powerful V6 in the rear, driving the rear wheels and the electric motors up front driving those wheels).

In return for all this new product, Acura is asking dealers to introduce ‘concierge service.’ Chenkin described it as a premium experience from point of sale through the entire ownership experience.

"The goal is to exceed customer expectations."
 
#3 ·
ILX or TSX


American Honda's Acura division will launch a new entry-luxury sport sedan and a redesigned RDX crossover this spring as part of an ambitious effort to revive its luxury image.

The ILX sedan, which will replace the slightly larger TSX in the lineup, arrives in dealerships alongside the new RDX.

The combination of the 2 new products, plus the ability to manufacture at full capacity after recovering from last year's earthquake in Japan and flooding in Thailand, means Acura sales are projected to increase from about 123,000 units in 2011 to 180,000 this year, said American Honda CEO Tetsuo Iwamura.

Honda is revamping the Acura lineup over the next 18 months in a bid to jump-start the division's lagging sales.

After years of trying to push Acura into the front ranks with Mercedes-Benz, BMW and Lexus, Honda officials say they will settle for offering midlevel premium vehicles that favor fuel economy over performance.

"Over the next 24 months the Acura brand will unleash a series of new models that will remake our product lineup and shake up the luxury market," Acura General Manager Jeff Conrad said in a statement.

Acura's U.S. sales -- hampered by inventory shortages resulting from the March earthquake in Japan -- dropped 8% to 123,299 vehicles last year.

The ILX will share underpinnings with the Honda Civic. It is not the 1st time Honda has based an Acura on the Civic. The successful Integra and RSX of the '90s and early '00s were both Civic derivatives, and no 1 thought less of them.

Why was the ILX downsized? The outgoing TSX was based on the European Honda Accord platform, and its footprint crowded the TL sedan, which also was about the same size as the flagship RL. Having 3 sedans so close in size but with a $20,000 price spread was a problem for the brand. More differentiation was needed -- hence the ILX.

The deletion of the TSX, though, will not happen immediately upon the launch of the ILX, said Vicki Poponi, American Honda assistant vice president of product planning.

While admitting the TSX "is the car that gets squeezed," Poponi said that, "We can't dump it right away. We'll see how they work together."

Acura design chief Jon Ikeda said the introduction of the ILX means Acura is "in process of reshaping the hierarchy of the entire Acura sedan lineup."

Iwamura was upbeat about Acura's sales prospects for this year.

"If we do 180,000 units, that will be a success. We are much more ambitious for the future. Last year, we struggled a lot with production [due to the earthquake and tsunami], but this year we can go full speed,"
Iwamura said.

The ILX, unveiled in concept form at the auto show here, will offer a choice of 2 4-cylinder engines -- a 2.0-liter or 2.4-liter -- or a hybrid combined with a 1.5-liter 4-banger.

Among standard features on the ILX: keyless locks, push-button start, Pandora radio and front, side and side-curtain airbags.

The ILX will be built exclusively at Honda's new Greensburg, Ind., plant, boosting Honda's U.S. manufacturing base and further shielding it from the strong yen. The outgoing TSX was built in Sayama, Japan.

Acura ILX
Wheelbase: 105.1 in.
Length: 179.3 in.
Width: 74.4 in.
Height: 56.1 in.


RDX: Longer wheelbase, wider track
The redesigned Acura RDX crossover gets a 273-hp V-6 engine instead of the underpowered four-banger in its predecessor.

The redesigned RDX crossover also will feature a longer wheelbase and wider track.

The RDX's previous big weakness -- a peaky turbo-4 engine -- has been replaced with a 273-hp 3.5-liter V-6 that has 33 more horsepower than the outgoing model.

Acura RDX
Wheelbase: 105.7 in.
Length: 183.5 in.
Width: 73.7 in.
Height: 64.2 in.

 
#4 ·
Update




Honda is ready to begin the makeover of its Acura premium brand this spring, and the timing could hardly be better.

In addition to the new ILX small sedan and redesigned RDX compact crossover coming in spring, a tease of the redesigned RL flagship due this fall will be shown at the New York auto show in April.

Then, the volume leading TL sedan and MDX mid-sized crossover are slated for 2013 redesigns. The much-hyped NSX supercar should arrive by the end of 2014.

6 years ago, Honda Motor Co. executives decided to move Acura upscale and shelve the brand's entry-level luxury offer -- the compact RSX hatchback, which was the successor to the Integra. The timing couldn't have been worse.

In less than 3 years, many of Acura's competitors announced plans to offer products that fit the RSX and Integra's niches. Then the global economy collapsed and many luxury-vehicle buyers pared back their purchases.

In May, Acura will return to the entry-luxury segment with the ILX. The sedan won't remind anyone of the sportiness of the RSX or Integra, but Acura hopes it will appeal to sensible Gen Y customers.


Conrad: "We're remaking the entire lineup over the next few years."

The collapse of Lehman Brothers "changed the philosophy for luxury purchases. People are making more rational purchase decisions, taking pride in the deal they strike," said Jeff Conrad, Acura Division general manager. "Generation Y aspires to luxury, but they need a little help getting there."

The new lineup will feature four sedans, the TSX, TL, RL and ILX. There is some overlap, but Conrad said Acura has no plans to eliminate any of the 4.

"We're remaking the entire lineup over the next few years,"
Conrad said. "Nothing goes away, and we're sticking with that. We've had a pretty strong reliance on sport-utilities and we want to bolster our sedans."

With 40,000 units of additional volume from the estimated $27,000 ILX, Acura expects its overall U.S. sales to jump 46% to 180,000 units this year -- up from 123,299 in 2011. If not for the Japanese earthquake and Thai flooding last year, Acura estimates its 2011 U.S. sales would have been about 150,000. So the volume jump is not as large as it would seem, Conrad said.

In the longer term, it's unclear whether Acura aims to fight head-to-head against Lexus, BMW and Mercedes-Benz.

"We want to take 1 year at a time," Conrad said. "We're not going to go set volume targets for future years. Everyone wants to continue to grow, but for the foreseeable future this is a pretty good level to be at."

Acura doesn't want to increase its dealer count, Conrad said. But the brand needs to improve owner loyalty.

At 45%, Acura customer loyalty is slightly below the industry average of 49%, according to the J.D. Power and Associates 2012 Customer Retention Study.

According to the study, Acura doesn't really compete in the luxury segment. It mainly attracts customers from -- and loses them to -- Honda and Toyota.

"I know we're not satisfied with our loyalty numbers," Conrad said. He said retention efforts will include data mining to better understand when and how to contact existing customers.
Acura is counting on 40,000 sales from the ILX this year.

Acura also will be more aggressive with presale marketing before redesigned products reach market. Already, 3,500 potential 2013 RDX buyers are in Acura's dealer system, waiting for the on-sale date to arrive.

On the plus side, Conrad said Acura's average customer age is 2 to 4 years younger than those of other premium brands.

Although Acura's core customers continue to be baby boomers, the brand is seeking to connect with younger buyers. In researching Gen Y -- consumers aged 19 to 31 -- Acura has discovered that "value for money" is the primary concern, replacing the baby boomers' focus on quality, reliability and fun-to-drive vehicles.

So what do the Gen Y customers covet? Connected cars, with features such as Bluetooth, Pandora and SMS text messaging. Cool engineering solutions for better performance aren't nearly so high on the wish list.

"The real key is not that we offer it, but that we offer it and put it on a vehicle and make it intuitive to use," Conrad said.

Acura will continue its appeal to Gen Y through its product placement arrangement with comic-book-movie franchise Marvel Enterprises. Already seen in Thor, Acura products will be highlighted in this summer's mutant-superhero flick The Avengers.

That should play into the cool factor that appeals to young buyers. When asked what makes a vehicle cool, Gen Y respondents said exterior styling, affordability and environmental consciousness.

"It's no secret the last few years have been pretty tough on Acura,"
Conrad said. "'Smart luxury' has become our internal mantra."

PHP:
Converts and turncoats
Acura conquests buyers from...	 	While it loses its owners to ...
Honda	12%	 	Honda	8%
Toyota	8%	 	Toyota	7%
Lexus	4%	 	Infiniti	4%
Nissan	4%	 	Lexus	4%
BMW	3%	 	BMW	4%
Source: J.D. Power and Associates 2012 Customer Retention Study
 
#5 ·
Grille


TOKYO -- Acura's new global design chief wants to spice up Honda's premium brand, but 1 polarizing feature won't change.

The shieldlike double pentagon grille -- derisively billed "the beak" by critics -- is here to stay, says Toshinobu Minami.

Minami, 44, took the reins of exterior design for Honda and Acura last September, chosen by President Takanobu Ito to inject more visual interest into the company's utilitarian styling.

He says Acura's oft-maligned grille may have gone too far in the past. But the look is growing on people, he says, and the basic design language will stay, albeit toned down a bit.

"We concede that we went a little overboard at some points," Minami said in a recent interview. "We actually had pretty bad feedback on this initially from different directions. But we are not going to buckle under that pressure."

The V-shaped grille was most recently carried over to the new Acura ILX entry sedan that went on sale this spring. It also appeared in the redesigned TL that debuted last fall and the NSX concept sports car shown this year at the Detroit auto show.

But the new look has been toned down from earlier incarnations, which were introduced under Acura's "keen edge" design overhaul that started in 2008.

"There hasn't been that great of a change, but maybe people have gotten used to it," Minami said of the grille. "There may be small evolutions here or there in details."

Minami says he wants to make the Honda brand sportier and more active, closer to Acura's traditional territory. In turn, Acura will be "going further out, maybe pursuing premium."

Minami, who penned the NSX concept, worked in the early 2000s as lead exterior designer on the Acura TL and 2nd-generation Acura RL, neither of which had the keen-edge grille.
 
#6 ·
AutoNews


Acura is in the middle of a major product changeover, reflecting plans to challenge 2nd-tier luxury rivals Audi, Buick, Infiniti and Volvo rather than Mercedes-Benz, BMW and Lexus.

Acura has launched the ILX compact sedan and redesigned the RDX compact crossover. It will redesign the RL flagship this fall and make changes to the MDX crossover and TL mid-sized sedan in 2013.

Acura will lead the technology revolution for Honda Motor as the new Earth Dreams engine family is installed in all future vehicles. Also, Acura is moving toward increased use of 7-speed dual-clutch automatic transmissions in addition to its basic 6-speed automatic. More models also will get hybrid versions.

ILX: Acura returned to the entry-luxury sedan segment this spring. But already criticism that the base 2.0-liter engine is underpowered may lead to a mid-cycle swap-out for the 2.4-liter, 181-hp Earth Dreams engine, or an automatic transmission for the 200-hp 2.4-liter from the Civic Si. Company sources say, in response to rumors on the Internet, that there are no plans for a coupe variant.

TSX: Within Acura there is talk that the TSX will go away after its normal model cycle ends next year. But don't be surprised if limited production continues, because the TSX's V-6 version doesn't cannibalize the ILX's 4-cylinder offerings.

TL: A redesign comes next spring, still sharing the Accord's underpinnings. Because the TL is too close in footprint to the RL, expect a shorter wheelbase and overall length, moving it closer to the soon-to-depart TSX. The big change will be addition of the Earth Dreams engine, a 3.5-liter V-6 with 310 hp and 265 pounds-feet of torque. This is 30 more hp and 11 more pounds-feet than the outgoing 3.5-liter engine in the TL. A hybrid version will also be available, sharing the same parts as the Honda Accord Hybrid and with a fuel economy rating of around 45 mpg.

RL: A redesign comes in fall, and the Earth Dreams V-6 from the base TL is the base engine. It will be teamed with a front-wheel-drive transmission and a 4-wheel-steering system. The base model is expected to weigh under 4,000 pounds thanks to extensive use of aluminum and high-strength steel.

The RL will have an optional 3.5-liter direct-injection V-6 engine with variable valve timing, combined with Honda Motor's Sport Hybrid All-Wheel Drive system. The improved engine puts out more than 370 hp, using a 7-speed dual-clutch transmission.

The redesigned car is about the same length as the current RL, but with a wheelbase 2 inches longer. Both the track and vehicle width will increase by about 2 inches.

RDX: The crossover was redesigned this spring. The big change: A V-6 replaced the turbocharged 4-cylinder engine.

ZDX: Sales are sliding for the MDX variant, but since it costs relatively little to produce it alongside the MDX, it might remain in the lineup as a special-order vehicle until the next MDX arrives.

MDX: The mid-sized crossover is scheduled for a redesign next fall and will stay on the Pilot/Odyssey platform. Don't expect much change in size, but definitely look for a dialing back of the "beak" grille. It will get the same Earth Dreams 310-hp V-6 engine as the TL.

NSX: By 2014, Honda will hand-build the Acura sports car on a small-scale assembly line at the company's r&d facility in Ohio. The NSX will be as much about technology as performance. Instead of a monster engine, it will have a compact, direct-injection V-6 teamed with a lithium ion battery pack. The "Sport Hybrid All-Wheel Drive" system uses two integrated drive units at the rear wheels connected to a motor-generator that delivers power.

The NSX will be developed at Honda r&d in Ohio.
 
#10 ·
Rumor


Secrets out! Motor Trend recently reported that Acura has been developing a smaller more agile NSX along with the regular NSX for quite some time now. No, it’s not an S2000 successor, but a Mid-Engine, AWD car that is set to blow the doors off it’s competition, and 1 that could actually save the NSX project all together.

When Acura 1st started developing this car, it had a major “Maybe” factor. At 1st it was just a few R&D ideas thrown together. But soon Acura came to the realization that this project could actually work.

We don’t have any concrete information on this car as of yet, but the “Baby NSX” is likely to be powered by a Turbo-Charged, Direct injection engine. Developing the big NSX wasn’t all a waste though, as Acura will be using many of the technologies from that project and directly fuse it to the it’s baby brother. Think of it as a smaller Hybrid of 2 NSX’s. This will also help recoup some of the costs involved in the years spent R&D’s the bigger car.

Expect to see the smaller NSX on dealer lots by 2017 with a price range between $50,000 & $60,000. Not bad!
 
#11 ·
Luxury


Honda’s Acura brand is poised to take its place among the industry’s mainstream luxury brand with new products and ambitious sales goals, a top executive said today.

Acura will have a bigger push in the U.S. going forward, said John Mendel, executive vice president with American Honda, who was in Detroit to speak at the Automotive News World Congress.

The 2014 Acura NSX, to be built in Ohio, marks the return of the super car.

The 3rd-generation MDX will go on sale mid-year and the prototype was unveiled this week at the North American International Auto Show. In addition to a new 3.5-liter engine, the crossover introduces a two-wheel-drive option to appeal to southern states.

The new Acura RLX sedan goes on sale March 15 with a price range of $48,450 to $60,450.

The brand is very North American-centric with about 95% of Acuras sold here.

“We have not adopted a push strategy on Acura,” Mendel said. The pull strategy consists of exporting to China, Russia, the Middle East and other markets wanting Acuras.

“The U.S. is still the lead but there are people overseeing some of the distribution of Acura globally.”

Acura had a curious birth.

"Acura was conceived originally as an interceptor brand," Mendel said, established as a place for Honda customers wanting more content in their vehicles.

“It was never truly envisioned as a luxury brand,” he said. “It was a technology platform.”

It wasn’t until 6 or 7 years ago that the automaker saw Acura evolve as a true brand and it has taken the focus of the last several years to define it.

A senior Honda executive described Acura as always orbiting Honda, Mendel said.

But the brand is at a tipping point. “Now it is time to send Acura into its own orbit,” Mendel said.

Acura will contribute to the parent company’s ambitious global goals: 6 million in sales by March 31, 2017.

North America will account for 2 million of those sales with the U.S. delivering 1.8 million – up from about 1.5 million now. Mendel expects U.S. sales to grow to 16 million in the next couple years and Honda plans to take a bigger share of that market.

By the end of this fiscal year, March 31, 2013, global sales are expected to be 4 million.

Much of the growth – 1.5 million sales – will be small subcompact cars based on the new platform for the Honda Fit coming in the spring of 2014 and the new crossover that was unveiled at the Detroit auto show and will go on sale in late 2014. Because the new Fit-based SUV is small, it will not affect sales of the larger CR-V, Mendel said.

When the new plant in Celaya, Mexico, starts making the Fit and crossover next year, Honda will be using North American plants to make 95% of what it sells in the U.S. “No other manufacturer comes close to that arc,” Mendel said.

North America currently takes the lead on product development for 30% of the Honda and Acura lineup now and that will increase as well.

North America will take the lead on more key models such as Accord, next-generation Civic and CR-V, Mendel said. The NSX is also being developed here and most light trucks come from North America including the Odyssey minivan and the Pilot and MDX.
 
#12 ·
AutoNews

Launches, Bloated Inventory are Top Priorities for Acura

Mac Churchill
Age: 63
Dealer since: 1992
Dealership: Mac Churchill Acura, Fort Worth, Texas
Average monthly sales in 2012: 100 new, 218 used
Quote: "We haven't done a real good job of explaining the benefits of owning an Acura."

Paring down vehicle inventories and successfully launching flagship products are the big tests for Acura this year.

The new RLX sedan goes on sale in March, followed by the redesigned MDX crossover in the middle of the year. Acura dealers are working with the manufacturer on launch strategies, says Mac Churchill, who owns an Acura dealership in Fort Worth, Texas.

Staff Reporter Amy Wilson spoke with Churchill, chairman of the Acura Dealer Advisory Board, about what's coming up for Acura in 2013.

How was 2012 for Acura dealers?

Much improved. Our sales were up 26.7%. Everybody's net profits were up accordingly, generally across the board. Of course, this was the year without the tsunami. It was the best sales result since 2007. 2013 is going to be an outstanding year, with the new product they have coming and with the RDX being in full production all year long.

What are the major issues Acura dealers face in 2013?


1st is the launch of the 2014 RLX, our new luxury sedan that will be here in March. We're pulling out all the stops on a very successful launch. We've got all kind of new strategies to do that. We're going to try to build an order bank before the car even gets here.

Are you seeing early demand from people in the showroom or folks calling and asking to be put on lists?

Yes. We have lots of customers and lots of questions. We should be getting a couple of cars for them to view in February. There's lots of interest because Acura has not had a real good flagship car, and this will be our answer. [The factory] is going to get us cars ahead of time, and we're going to be able to test drive them and demo them. People will be able to place orders ahead of time, before the production starts.

Will it come across to consumers as a true luxury car?

Absolutely. It's finally there. The valet will park it in front of the restaurants. We've been asking for several years to have a real luxury flagship sedan, and this is the answer.

How will it do against the BMW 5 series and Mercedes-Benz E class?


Those owners are real loyal. But we'll win some over, and we'll win some back.

What else is a major issue for 2013?

We've got to have a successful launch on our flagship SUV, the 2014 MDX, which is still our best-selling model ever. It's really important we have a good launch without challenges.

Do Acura and the dealers still need to work out that launch?

We're working on the strategies. 1st, we're going to handle the RLX launch, but we've already begun talking about MDX.

Can MDX sales increase with the redesigned model?

Yes. In the South, all-wheel drive is not as big a deal as it is up North in the snow. So we've been pushing for 2-wheel drive, and they're going to come through with it. We're super excited. All the Southern states and California have been asking. We were real successful with the 2-wheel-drive RDX we asked for. This will be a big deal for us.

Another challenge we have is communications from the factory to the dealer and the dealers back to the factory, so they can have proper input and we can make changes like this 2-wheel-drive MDX. They seem to be listening better. They listened to us about designing the launch for the new RLX, so we think we're making progress there.

Has that been a struggle in the past?

Yeah. It's been more of a struggle, more top-down than coming from the dealers up and having an effect. But as of late they've been open-minded and have reacted quickly to some of our suggestions. We're actually getting more face time with Acura senior management. That has a lot to do with it.

What's being done to get sales moving for the ILX small sedan?

They were [too] aggressive on their sales target. That particular market segment is languishing. It's picked up recently since they put some more support on it. Early on, we were doing half the [targeted] sales. But [that's] 25% of that market segment, which ain't bad. It's No. 2 in the market segment.

Is it matter of readjusting expectations, or should other things be done?

They're making adjustments. We'll probably see them as early as May. They're going to up the content, improve the inside of the car. More value for the money. In the meantime, they'll have support for the car.

What are the content enhancements?


They haven't told us, but I would suspect they will add leather and power seats and things like that.

And not change the price?

Probably, yes.

How much longer will the TSX stay in the lineup?

They haven't put a timetable on it, but I think through this year anyway.

Does that vanish when the TL replacement arrives next year?

I bet so, yes.

How can Acura best juggle these product initiatives: Getting the ILX moving, keeping the RDX momentum and launching the new RLX and MDX? That's a big slate.

We're working to build a product cadence in lockstep with lots of preparation on the front end and designing our lease strategy around each of the products as they phase out or come in.

So we can transition people into new units and new models as they become available.

We're going to make sure we think out our strategy on the launches so they correspond to the cars and come in in the best manner possible. That's why we're coming with a couple of cars for each dealership to test drive for customers before the [production] cars even get here.

Do dealers see Acura as a premium or luxury brand?

We're trying to be a brand that offers value and not compete against the cigar-and-scotch crowd.

Are you conquesting buyers from other luxury brands or are they mostly moving up from mainstream brands?

Mostly mainstream brands, but we think the new RLX will conquest some of the luxury brands. MDX is currently conquesting some of those luxury brands. BMW and Lexus, for sure, and Infiniti.

What do Acura dealers think about the advertising account being put up for review?

Most of them thought it was overdue. Competition always makes you better. [Incumbent] RPA may ultimately end up with it.

But until you see what else is out there and how creative other people are, you can't be certain you're getting the best bang for your buck in advertising.

Do dealers want a new advertising vision for Acura? The Seinfeld commercial was perceived as cute, but does that get the job done?

We have great Super Bowl ads. But it's those ads that go on all year long that beat the drum to help you make sales that are so important.

1 or 2 splashes doesn't make an advertising campaign. And a real marketing campaign embodies all the different media, whether it's billboards or radio or television. It might be special events, but you've got to bring them all together and have a focus.

We haven't done a real good job of explaining the benefits of owning an Acura.

Does Acura have anything new in the works in terms of a facility image program?


They haven't come with any kind of program. I'm sure they've thought about it, as many manufacturers are. They do have a design model if you want to upgrade your store. They have not come with any extra money to help us. No hard pressure.

How does the certified-used program work? Are there ways to improve it?

We have made recommendations. The certification process isn't the problem. We just need more advertising and promotion in that area.

They're trying to put a plan together. They've already come with some interest rate support on some of the cars, so they've helped.

Is it final? Do we have a year's deal laid out? Not that I'm aware of yet. We're working with them to get a plan into effect that can be ongoing, that we don't have to reinvent each year.

We asked for co-op money. We asked for point-of-purchase products. We asked for a portfolio. We asked for incentive money for the certified cars.

Is anything still missing from the product lineup?

We have the NSX coming. It's not a volume car. We're making plans and talking about it already. It's a year and a half away anyway. I really don't know.

Once the NSX is out, will you have a full lineup?


We'll have a very good core. We probably need to find some other niches. I would say a convertible, a coupe.

They are not in the works, although I'm sure they're thinking about it and looking at the market segments they need to try to attack.
 
#13 ·
Changes


Acura plans a 19% increase in new-vehicle retail sales in 2013, dealers were told at the make meeting.

The brand is counting on its RDX crossover and ILX entry-level sedan to drive sales this year, Acura General Manager Jeff Conrad told Automotive News after the meeting.

In 2012, RDX sales rose 94% to 29,520. Acura launched the ILX last year and sold 12,251.

"The ILX is No. 2 in its segment," Conrad said. "It's a bit of a new segment it plays in and we think that segment will grow."

ILX inventory is about 90 days, Conrad said. He and dealers want it to be 60 to 65 days.

To reduce ILX inventory, Acura is offering incentives and a lease program, and is slowing production, said Mac Churchill, president of Mac Churchill Acura in Fort Worth, Texas, after the meeting.

Churchill said executives told dealers the Acura ILX will get leather seats, power seats and a backup camera starting this summer to boost sales.

"We'd like to see it not impact the price, but adding that much content probably will," Churchill said.

Conrad and dealers say the launch of the 2014 RLX flagship sedan, which goes on sale March 15, also will drive 2013 sales. Acura was to have given each of its 265 dealers 2 RLXs by Friday, Feb. 15.

The early delivery was to help dealers continue training salespeople on the product and to allow dealers to promote the vehicle by offering test drives to customers.

"We want to make sure our people know the product inside and out," Conrad said.

So far, about 5,400 consumers have shown interest in the car, Conrad said. It will start at $49,345, including shipping.

"We're getting everyone schooled up," dealer Churchill said. "This gets everyone familiar with the car before it gets here."

Churchill says the early delivery was partly a dealer initiative for the launch.

He said dealers now must make the launch successful by getting customers behind the wheel for a test drive.
 
#14 · (Edited)
BloomBerg


Acura’s future was so dire 4 years ago that Honda Motor Co. (HMC) began killing models and choking off product development. Now, Honda is putting $1 billion into its luxury brand, a perennial also-ran to Toyota Motor Corp. (TM)’s Lexus line.

Honda’s latest attempt to give Acura purpose is a parade of new products, including the flagship RLX sedan, an MDX sport wagon and the return of the NSX super sports car, priced above $100,000. Its goal is to tailor Acura to the tastes of the U.S. buyers it covets.

The product push this year comes after Acura’s U.S. sales have fallen 25% from a peak of 209,610 in 2005. Though Honda was the 1st Japanese automaker to sell a luxury car in the U.S., Acura never reached the peaks of Toyota’s Lexus line, the top-selling luxury brand in the U.S. from 2000 to 2011. And Acura has never captured the cachet of German luxury cars, forcing Honda to sell its upscale models on the cheap.

Acura’s “biggest negative is we are known as a value company in the premium space,” Mike Accavitti, Honda’s U.S. marketing chief, said in a Detroit interview last month. “What we have to do from a marketing perspective is ramp up the emotional element.”

Honda’s effort to elevate Acura shows how important -- and competitive -- the luxury segment has become for carmakers worldwide. Luxury sales have increased as the U.S. economy has improved and upscale cars provide generous profits and prestige that serve as a halo over an automaker’s entire model line.


Valuable Sales

Luxury autos account for 12% of global sales, “but are almost 50% of industry profits,Johan de Nysschen, president of Nissan Motor Co. (7201)’s Infiniti luxury line, said in a briefing last month in Detroit.

Honda has jumped 50% since Nov. 14 as the yen has weakened. Even so, investors are willing to pay a smaller premium for Honda’s revenue compared with BMW’s sales than they have for most of the past decade.

Four years ago, Honda’s then-president, Takeo Fukui, reviewed the expansion plans for the company’s lagging luxury line. At the time, Acura’s U.S. sales were plunging by almost half, to 105,723 in 2009, as the recession ravaged auto sales.

So Fukui took a red pen to Acura’s budget. He scrapped plans to create an Acura dealer network in Japan. He killed development of a new NSX model with a massive V-10 engine. He also canceled plans to emulate German luxury cars by outfitting Acuras with V-8 engines and rear-wheel-drive vehicle platforms.

U.S. Focus

Now, Honda is turning in a different direction from its German competitors. Acura won’t chase the money in emerging markets such as China. Instead, it will try to restore Acura’s credibility as a technology leader in the U.S. and finally emerge from the near-luxury bargain basement.

Acura “will remain a U.S.-centric brand,” John Mendel, Honda’s U.S. sales chief, said in an interview in Orlando, Florida, this month.

Honda, known for efficient product development, is overhauling Acura’s lineup for what some automakers could spend on 1 model, said Rebecca Lindland, auto consultant with Rebel 3 Media & Consultants in Cos Cob, Connecticut.

“If they can revamp the lineup for $1 billion, that’s money well-spent,” Lindland said.

In the U.S., auto sales have been growing by 10% a year since 2010 and disposable income tops $12 trillion, dwarfing what Asians and Europeans have to spend. The U.S. is also the market Honda knows best. The Tokyo-based company derives more than half its sales and profits from North America. U.S. drivers accounted for 89% of 2012 Acura sales, the company said.


Design, Assembly

Acura’s design studio is in Torrance, California, on the campus of Honda’s U.S. headquarters. Most Acura models are built in North America, and the company is preparing to build the NSX in Ohio.

“Honda really does its homework; they’re really in touch with U.S. consumers,” Kevin Tynan, Bloomberg Industries auto analyst, said Feb. 19. “But Acura is as anonymous as you can get. A lot of people don’t even know the relationship between Acura and Honda.”

Jeff Durgin, the president of a New Jersey construction equipment company, bought a $39,000 Acura TL in 2009 because he had owned 8 Honda models. He kept the TL only a year and replaced it with Hyundai Motor Co. (005380)’s upscale sedan, the $41,000 Genesis, with a 429-horsepower V-8 engine.

“The Acura was a good car, but the ride was pretty rough and the styling was terrible, with a big duck bill on the front end,” said Durgin, 48. “It seems like Acura has lost its way.”


Anime Beaver

The angular grille Acura began affixing to its models in 2008 turned off owners, including Michelle Krebs, an auto analyst for researcher Edmunds.com who used to drive a TL. Auto reviewer Dan Neil, then of the Los Angeles Times, wrote that the grille, which Acura has since softened, made the TL look like “a very large anime robot beaver.”

“Acura’s designs got very funky,” said Krebs, based in Royal Oak, Michigan. “They tried to make their designs different to stand out, but they ended up looking quirky.”

Acura commands the lowest prices among major luxury automakers in the U.S., according to Edmunds. The Acura TL sold for an average of $36,657 last year, almost $7,000 less than a BMW 3 Series, a slightly smaller model, and $3,000 less than a Mercedes-Benz C-Class and Lexus ES 350, according to Edmunds.


NSX Halo

Accelerating Acura starts with the comeback of the racy NSX, which goes on sale in 2015 and Honda promoted in a Super Bowl ad starring comedian Jerry Seinfeld last year. When Acura introduced the $89,000 2-seater in 1989, driving enthusiasts embraced it for the speed it generated from a powerful V-6 engine mated to a lightweight, all-aluminum body. Once so hot, the NSX starred in director Quentin Tarantino’s 1994 hit “Pulp Fiction,” driven by Winston “The Wolf” Wolfe, played by Harvey Keitel.

Acura stopped building it in 2005.

The NSX is being reborn as an all-wheel-drive hybrid, with a V-6 augmented by electric motors to generate the speed of a V-8, Honda said. It will be so fast that Honda intends to race it in 2014 when the Grand-Am Road Racing and American Le Mans Series merge, said T.E. McHale, a spokesman for Honda’s motor sports unit. Honda has said the new NSX will race in Japan’s Super GT circuit.

Honda is hoping that by reviving Acura’s halo car, it can draw buyers to showrooms, even if they drive home in another model. Aiming for waiting lists, Acura will limit sales of the NSX to no more than 800 models a year, Mendel said.


Broader Appeal

Convincing NSX shoppers to settle for an Acura sedan or SUV might be a tough sell, Tynan said.

“I’m not sure a $100,000 halo car is going to get people to say, ’I get Acura now’,” Tynan said.

While the NSX is designed to lead Acura’s style renaissance, the sales recovery must come from the RLX, which replaces the slow-selling RL, the MDX sport-utility vehicle, and a new mid-sized sport sedan that will replace the TL model, Mendel said.

Executives in Japan want U.S. sales for the premium brand to grow to as much as 20% of Honda’s total deliveries, up from 11% last year, said Koji Endo, managing director at auto analyst Advanced Research Japan. Akiko Itoga, a Honda spokeswoman, declined to confirm that target.

That would suggest that Honda is aiming to boost Acura sales by as much as 82%, to a record 285,000 from last year’s total of 156,216. Mendel said Acura’s U.S. sales goal this year is “about 180,000 to 180,000-plus.”

Below BMW

That would leave Acura still trailing luxury leaders Bayerische Motoren Werke AG (BMW)’s BMW, which sold 281,460 models in the U.S. last year, Daimler AG (DAI)’s Mercedes-Benz, which had 274,134 U.S. sales in 2012. Globally, BMW sold 1.54 million models last year, Volkswagen AG (VOW)’s Audi luxury line sold 1.46 million vehicles and Mercedes had 1.32 million worldwide sales.

When Acura arrived in 1986, it was meant to showcase Honda’s engineering excellence taken to a higher level, symbolized by an angular A logo evoking an engineer’s calipers on the front of every model.
27 years later, Honda continues to struggle to reach the highest level of luxury with Acura. And it is losing buyers like Chicago marketing executive George Schaumann, who owned 4 Acura models before he left the brand in September to buy a $45,000 Audi Q5 SUV.

“I’d be lying if I didn’t say I feel good about driving an Audi,”
said Schaumann, 53, who traded in a 2010 Acura MDX for the German luxury model. “Acura is kind of stuck in Honda’s shadow, with designs that don’t make me think of prestige.”

To contact the reporter on this story: Alan Ohnsman in Los Angeles at aohnsman@bloomberg.net

To contact the editor responsible for this story: Jamie Butters at jbutters@bloomberg.net
 
#15 ·
Mullen


American Honda picked incumbent RPA to remain its advertising agency of record for the Honda brand after a 3-month review while giving Acura's creative business to Boston-based Mullen.

The decision announced Tuesday changes a 26-year relationship between RPA and Honda. RPA has carried the Honda brand since the agency was formed in 1986. It landed the account for Honda's luxury Acura brand in 1999.

MediaVest of New York has won the media-buying account for both brands from RPA, which used to be known as Rubin Postaer and Associates.

As a result, Honda's advertising and marketing relationship moves to more of a hub-and-spoke model with different suppliers for media buying, and for the Honda, Acura, Hispanic and African-American campaigns.

The 4 finalists for the $850 million account were RPA; Mullen; 72andSunny, of Los Angeles; and The Martin Agency of Richmond, Va. The media-buying challengers were PHD Worldwide of London; and Horizon Media of New York.

The Honda brand represents about 70% of American Honda's overall marketing outlays, according to 2011 figures from Advertising Age, a sister publication to Automotive News.

"We are confident that our new team of agencies will create dynamic marketing campaigns that connect and engage consumers with our products and our brands, while achieving an even higher level of efficiency and effectiveness," said Mike Accavitti, American Honda's chief marketing officer.

MediaVest's role as a separate media agency is expected to result in more sophisticated targeting of American Honda's media mix, with a significant improvement in media buying efficiency, the company said.

"Getting smarter about how we communicate was a critical goal of this process and even with the same level of investment we expect to realize more efficient and targeted media plans, which will increase the amount of money we spend on reaching our customers," Accavitti said in a statement.

Honda is in a strong position, product-wise, with recent changes to its 3 top volume nameplates: redesigns of the entire Accord lineup and CR-V crossover occurred last year, as did a 2013 freshening of the Civic compact.

But this also means the Honda brand is entering a fallow period with few major product launches; the agency will have to work to keep retail interest churning.

A strong December helped American Honda's full-year 2012 sales rise by 24% to 1.42 million vehicles -- with the caveat that most of summer 2011 sales were impacted by the Japanese earthquake and tsunami. U.S. sales through February are up 4%.

Honda has grander volume aspirations. The Honda and Acura brands are aiming at their combined 2007 sales record of 1.55 million sales for this year. And Honda Motor CEO Takanobu Ito also has said he wants American Honda to reach 2 million sales in the near term. That is part of Honda's global growth strategy of moving from 4 million to 6 million sales by the 2017 fiscal year.

"This is a really good chance for our business," Honda Motor CEO Takanobu Ito said at a roundtable at the Detroit auto show in January. "We have a lot of momentum. We are at full production for the U.S. market."

Although the 2012 Civic was a flop among automotive journalists, it was a sales smash with dealers as Honda pushed lease deals. Even though Consumer Reports removed the Civic from its "recommended" list, the Civic outsold the Toyota Corolla for the 1st time in recent memory.

But pushing incentives is a rare occurrence for the Honda brand; the 2013 Civic has no deals, and consumers and salesmen will have to return to the old ways.

Honda's next growth spurt should happen in 2014, when a redesigned Fit and a new Fit-based crossover will arrive.

They will be produced at Honda's new Celaya, Mexico, plant. That plant will have a capacity of 200,000 units, which will be split between the U.S., Mexican and Canadian markets.

On the Acura side, the flagship RLX sedan is just reaching market, and RPA will still be in charge of that launch, Accavitti said in a January interview.

However, the MDX crossover -- which is Acura's volume leader -- arrives this summer, and that launch will be part of the transition between RPA and Mullen, Accavitti said.

Honda chose Pittsburgh-based Ketchum Advertising to launch Acura in 1986. Ketchum lost the Acura account to Suissa Miller in 1996, and then it went to RPA in 1999.
 
#16 ·
Shang Hai


Acura has released the 1st image of a new crossover concept the company plans to unveil at the 2013 Shanghai Auto Show next month.

Acura hasn’t revealed any details about the concept apart from this single sketch and the announcement that the vehicle’s unveiling will be a world premiere.

We also know that the concept vehicle is destined for production, although so far the only market confirmed to receive it is the Chinese market.

With Acura’s RDX being all-new for 2013, and the company only just taking the covers off its redesigned 2014 MDX, the concept most likely previews a potential new entry from the Japanese brand.

Given the size of the wheels in proportion to the body, the vehicle pictured in the sketch is likely to be a compact crossover, aimed at rivals such as the Audi Q3 and BMW X1 and the upcoming Lincoln MKC and Mercedes-Benz GLA Class.

Sister brand Honda will also be using the upcoming Shanghai show to present a new concept, in its case a new MPV. While a redesigned version of the North American-spec Honda Odyssey MPV was just unveiled at the recent 2013 New York Auto Show, the global version of the car has been on sale since 2008 and will be due for a redesign soon. It’s possible that the MPV concept we see in Shanghai will be a preview of that redesign.

We’ll have more details soon, as the 2013 Shanghai Auto Show kicks off on Friday, April 19. For our complete coverage of the event, be sure to visit our dedicated show hub.

 
#17 ·
Lots and lots of good info here but seriously what Acura needs to do is quite building all these sedans that all almost look alike and bring back an affordable 2 door coupe like the rsx even tho that car is clearly a hatch back if there aiming for the younger crowd they need to bring back the rsx bringing this back will knock the si civic out of the water but that's just my opinion
 
#18 ·
TSX


The future of Acura's TSX appears uncertain as Honda Motor prepares to abandon the platform used for the compact sedan.

Acura boss Jeff Conrad says the TSX will remain in the lineup "for the foreseeable future." But when Acura moved into the entry-luxury segment with the ILX last year it jammed up its sedan lineup -- both in terms of vehicle sizes and pricing ladders.

The ILX and aging TSX are positioned close to each other, as are the TSX and mid-sized TL. The RLX has grown slightly to distance itself from comparisons to the TL, but not by much.

Product plans elsewhere within Honda Motor may force Acura's hand.

The TSX is based on the aged smaller Honda Accord platform used in Japan and Europe. The U.S. Accord traditionally has been larger and has been the basis for the Acura TL.

PHP:
Closely packed
Starting prices and dimensions for Acura's sedans
 	Price	Wheelbase (inches)	Length (inches)
ILX	$27,795	105.1	175.1
TSX	$31,405	106.5	185.6
TL	$36,800	109.3	194
RLX	$49,345	112.2	196.1
Prices include shipping charge.
But the Accord that debuted in the United States last year is on a new global platform that is sized for the U.S. Accord, rather than the Japanese and European market versions.

The British magazine Autocar reported that slow Accord sales in Europe won't justify a new model or allow Honda to keep the old platform. That makes the TSX a car without a donor platform.

Also, the TL is being redesigned for a summer 2014 launch, and a Honda Motor source said that it will be made smaller to make room for the flagship RLX, which is priced $12,500 higher. But that would put the TL right on top of the TSX in terms of size.

The TL is Acura's best-selling car, while the ILX has struggled to outpace the old TSX. Sales of each nameplate are between 24,000 and 32,000 units a year.

Acura has told dealers nothing about a shakeup in the lineup. They expect a 2014 TSX to arrive on schedule in September.
 
#19 ·
Wards


Acura is betting more standard content on the ’14 entry-level ILX will boost U.S. sales of the floundering sedan.

Honda’s near-luxury brand says it is raising the car’s base price $1,000 but adding $2,000 worth of interior improvements.

“1 of the issues we had with consumers was that they weren't seeing the (ILX’s) value and what they usually get with an Acura product,” Mike Accavitti, senior vice president-automobile operations for American Honda, tells WardsAuto in an interview here.

Buyers of the base ’14 ILX will get upgraded leather seating, heated front seats, active noise cancellation and an 8-way power driver’s seat for $26,900, increasing the car’s price “a little (but) adding a lot more value,” Accavitti says.

From May 2012, when the ILX went on sale, through April of this year, Acura sold 19,759 units, WardsAuto data shows. The brand is targeting 30,000 ILXs annually.

American Honda Executive Vice President John Mendel has said 1 of the key reasons ILX deliveries are falling short of expectation is the auto maker’s decision to pair the optional 201-hp 2.4L 4-cyl. engine with a 6-speed manual transmission only. Buyers of the base ILX get a 150-hp 2.0L with a 5-speed automatic.

Accavitti says Acura is considering mating the 2.4L to an automatic gearbox, but he does not provide a timeframe. “We're always looking at how we can improve the product, and to improve the powertrain is certainly something we could do on a future model.”

Acura research has found buyers of both variants have few complaints about lack of engine power, he says. “What we find, surprisingly enough, is the folks that are buying the car are quite satisfied with both of the powertrain offerings. The challenge for us is how do we get more folks to buy (the ILX), and that's where a powertrain change or improvement might assist us.”

The brand offers 4 car models and 2 cross/utility vehicles in the U.S., a slimmer lineup than many of its competitors. However, Accavitti says expansion isn’t in the cards, particularly with the CUV range.

Acura offered 3 CUVs until late last year, when it announced the midsize ZDX’s cancellation. As the B-segment CUVs increases in popularity, the brand is considering an entry in the segment. The BMW X1 and Buick Encore now are available in the U.S, and rumors suggest an Audi Q1 will arrive here soon.

At the recent Shanghai auto show, Acura showed a subcompact CUV concept for the Chinese market, with a production vehicle expected to follow. A similar model might be a fit for the U.S., “but right now we feel with the (midsize) RDX and the (large) MDX that we have this 1-2 punch,” Accavitti says, claiming no other luxury brand has the “strength of the lineup that we have.

“BMW has (the X3 and X5), but neither of those vehicles are very strong. Lexus just has the 1 (CUV), RX, and we kind of surround it.”

cschweinsberg@wardsauto.com​
 
#20 ·
AutoNews


Tetsuo Iwamura, CEO of American Honda Motor Co., says that for him, "The big challenge is Acura."

He said Acura has a "very strong lineup" of SUVs and crossovers. But in reviewing the brand's sedans, he said, "We need to improve a lot."

He said of the Acura ILX, for example, "So far, volume is not meeting our expectations. We could have done better."

And the TLX, he said, "could be a volume model for Acura" after it gets a redesign and rebadged from the TL "sometime spring next year."

Honda plans to showcase a number of new turbocharged engines and a new 8-speed dual-clutch transmission this week at the Tokyo Motor Show.

But Iwamura, speaking to reporters before the show, implied the carmaker would not use distinctive powertrain technologies to set Acura apart from the mass-market Honda brand.

3-motor hybrids
The 2014 Acura RLX Sport Hybrid, which will go on sale next spring, will come with Honda's 7-speed dual-clutch transmission and its new Sport Hybrid-All Wheel Drive linked to a 3.5-liter V-6 engine.

Iwamura said that Honda's 3-motor hybrid system will be unique to the Acura brand in the United States. Other than that, though, he did not single out any other technology as one that the automaker would reserve solely for Acura.


The 2014 Acura RLX Sport Hybrid, which will go on sale next spring, will come with Honda's 7-speed dual-clutch transmission and its new Sport Hybrid-All Wheel Drive linked to the 3.5-liter V-6 engine.​

The SH-AWD system uses a 3-motor hybrid system to redirect power, when the car is turning, from the inner wheel to the outer 1 to improve handling and performance.

The rear wheels get one electric motor each, while the 3rd is integrated into the engine as a motor-generator.

U.S. 1st

Acura's U.S. sales have advanced 6 percent this year to 135,126, but still trail Mercedes-Benz, BMW, Lexus and Cadillac.

Iwamura also rejected the idea of following Lexus and Infiniti, 2 Japanese luxury brands that are seeking to become global brands after many years of being exclusively or primarily brands sold in the United States.

"For us, the main market is still the United States, and a bit of China," he said. "Rather than expanding Acura globally, we'd rather make Acura a strong brand in North America and China." After that, he said, Acura can "look globally."

Said Iwamura: "Make sedans strong. That's the next 5-year plan."
 
#21 ·
Driving


Honda has been accused of sitting on its engineering laurels of late. The Technology Day proved that it has been doing anything but twiddling its corporate thumbs. While everything shown/driven during the day was not exactly cast in stone it was fairly described as being concrete in the process of drying — everything was too far down the engineering pipeline to be an exercise.

The production RLX Hybrid and its Super Handling All-wheel-drive (SH-AWD) is, in a word, superb. It is blindingly quick and the credit goes to 2 important things. The 3.5-litre V6 engine is good for 310 horsepower and 272 pound-feet of torque. Then there’s the electric side. The 2 rear electric motors contribute 36 hp each, while the front motor adds another 47 hp to the pot. In the end, the RLX SH-AWD has a net system output of 377 hp and 377 lb-ft of torque. Even as employed in a large sedan the system has the wherewithal to blow away many sports cars.

The beauty of the system is the manner in which it delivered its ride-on-rails feel. The mechanical version of SH-AWD was good; the electric system is much more accomplished. It not only overspeeds the outside rear wheel in a corner, it applies a negative torque to the inside wheel, which delivers some regenerative braking to top up the 1.3 kilowatt/hour lithium-ion battery. This action reduced the amount of steering input and the need to dab the brake heading into a corner. Around the test track the turn-in proved to be as crisp as it was immediate.


Beyond its handling/performance capabilities the RLX Hybrid can drive on electricity alone and, because of its configuration, has on-demand all-wheel-drive. The 7-speed twin-clutch transmission added to the sense of overall refinement. The shifts, which can be initiated through paddle shifters, were quick and when Sport mode was selected it sharpened the throttle response and shift speed, delayed the upshifts and firmed the steering’s feel.

All of this bodes extremely well for the up-coming NSX. While the engineers were coy, some information did slide by their tight lips. To begin with, it will adopt much of the RLX SH-AWD’s technology — specifically the electric motors, battery and power electronics. The biggest changes are found in the gasoline side and layout. Where the RLX has its engine mounted up front with 2 of the 3 electric motors powering the rear wheels, the NSX will be exactly the opposite — 2 electric motors driving the front wheels, while a new engine and the 3rd electric motor power the rear wheels.

In this application, the gasoline power will come from a twin-turbocharged 3.5L V6. Honda did not mention output, so I will use some extended thinking. The Civic Type R’s 2.0L VTEC Turbocharged 4 produces 280 hp (see later), which gives it a power density of 140 hp/litre. Using this as a base, the 3.5L twin-turbo V6, which should enjoy a similar power density, could have as much as 490 hp. And this is before the 3 electric motors have contributed — and they are likely to have more juice, too.


The NSX will also earn an all-new twin-clutch transmission (no mention of the number of gears, but it, too, is expected to have more than the 7 in the RLX). Shoehorn all of this leading-edge technology into a lightweight chassis — it will likely be a blend of aluminum and carbon-fibre reinforced plastic — and you have the makings of a seriously raucous ride. It all served to whet my appetite.

The star of the day was, without question, the prototype Civic Type R. This, given Honda’s rather conservative approach, is radical by any standard. It starts with what’s under the hood — the aforementioned 2.0L, VTEC Turbo 4 and the 280 hp and 295 lb-ft of torque it generates. Fire the power through a 6-speed close-ratio manual and a sticky set of P235/35R19 tires and you have the makings of a monster.

Pulling out of the pits, I ran up through the 1st 3 gears and got ready to merge onto the high-speed oval — I was doing about 75 kilometres an hour. Standing on the gas saw the front wheels spin as the Type R blasted fourth and towards the first high-banked corner. From here it was around the 4-kilometre banked oval at the limited top speed of 200 km/h (the road-going car will be capped at 250 km/h). Now, all of this was done in normal mode.


A button on the dash engages the R mode. This firms the steering and adjustable suspension, sharpens the throttle and puts the vehicle stability management system into its track mode. It, according to the engineer riding shotgun, allows the driver to have more “fun.” At the time of writing, the final Type R’s specifications were yet to be firmed up. For example, will the brake system use Honda’s own design, or the four-piston front Brembos on the test car? Regardless, this is a car that will be built and sold. It MUST come to Canada. Ford Focus ST? VW Golf GTI? The Civic Type R will show both a clean set of wheels.

There were 2 other equally compelling versions of the VTEC Turbo to test. The 1st was a 1.5L four that made 201 hp and 192 lb-ft of torque. It, in the Civic mule, proved to be a truly workable engine. It had great low-end punch and it was very strong through the mid-range — turbocharged torque always has this effect. As a replacement for the current naturally-aspirated 2.0L engine used in any application it will work like a charm, providing more power and better fuel economy. You can’t ask for much more.

The other VTEC Turbo was a 1.0L 3-cylinder. In spite of its diminutive displacement it still pushed 127 hp and 147 lb-ft of torque, which was enough to whisk the Civic test mule to 160 km/h with surprising ease. Even when married to a CVT (and I am not a fan of the continuously annoying gearbox), it worked perfectly. Well enough, in fact, to maybe get me over my CVT aversion.

 
#22 ·
BloomBerg


Honda Motor Co. (7267)’s No. 2 executive, asked to identify the automaker’s weak spot, spoke bluntly: The company’s Acura luxury sedans have to get better.

The world will soon learn whether they have. Next month Honda will introduce the Acura TLX to replace its aging TL, the brand’s top-selling sedan that was last revamped 5 years ago. Designed by Honda’s North American unit, the reworked luxury car will be the latest test of the Tokyo-based automaker’s decision to give more influence to U.S. engineers.

“We need an Acura brand to shine among luxury franchises,” Executive Vice President Tetsuo Iwamura said in an interview last week at Bloomberg’s headquarters office in New York. “It’s high time.”

Acura car sales are down 8.6% in the U.S. through November. That represents a drag on results for a company with 4 models -- the Civic, Accord, CR-V and Odyssey -- ranking 1st or 2nd in their respective segments. Combined Honda and Acura sales are up 7.8% this year, the slowest pace of the market’s biggest automakers and trailing the industry’s 8.4 percent increase through November.

Honda plans to introduce its 2015 model TLX sedan next month at the North American International Auto Show in Detroit, Iwamura said. A modified ILX compact sedan with a more robust powertrain will follow, and Acura’s NSX “supercar,” a high-performance coupe, returns in 2015. Iwamura declined to detail changes to the youth-oriented ILX model.

Berkman’s Role

The job of bringing the TLX to life was entrusted to Erik Berkman, a 30-year Honda veteran who in 2012 became the company’s 1st non-Japanese head of research and development for North America. Honda bolstered the U.S.-based operation’s power earlier this year when it created a 9-member North American management board, which includes Berkman, 2 other Americans and a Canadian. The board is in charge of products and strategy for the region, which generates the biggest share of the company’s global sales.

Berkman was among the engineers who helped the company tackle its last big test: 2012’s on-the-fly redesign of the critically panned Civic. He previously gained stature within Honda for leading development of Acura’s last hit sedan, the 2006 TL that helped the brand reach record sales in 2005. Getting Acura right, after what Iwamura called its “winding path,” is important to tap growing demand for premium vehicles in the U.S. and around the world.

Lagging Lexus

As Acura car sales have fallen, other premium brands have gained ground. Toyota Motor Corp.’s Lexus car sales rose 15% in the U.S. this year through November; Bayerische Motoren Werke AG’s BMW are up 9.2%; Daimler AG’s Mercedes-Benz, up 14%; and General Motors Co. (GM)’s Cadillac, up 55%. Mercedes-Benz car sales total 183,358 this year through November while BMW has delivered 178,512 cars, according to Autodata Corp.

While Honda derives the bulk of its revenue from mass-market Civic compacts, Accord sedans and small CR-V SUVs, luxury autos ensure better profit margins. The average Honda sold for $25,976 in November, versus $40,597 for each Acura vehicle, according to Kelley Blue Book, an automotive pricing and data company.

For now, Acura sales are sustained by the new MDX and RDX sport-utility vehicles, which account for 58% of Acura’s 149,685 U.S. sales through November. Honda sold 62,301 of its four Acura sedan models over the same period, including the large RLX and outgoing TSX, less than half the volume of Toyota’s premium Lexus cars.


‘Big Opportunity’

Acura, created prior to Lexus or Nissan Motor Co.’s Infiniti as a U.S. premium brand, can become a bigger source of global revenue for Honda, said Steve Usher, a San Diego-based equity analyst for JI Asia Research, who rates Honda a buy.

“They are now looking at it on a more global scale,” Usher said. “They’re starting to think about getting Acura to China, and that will be a big opportunity.”

Iwamura said in January that his 2013 goal was a U.S. sales record -- topping its 1.55 million U.S. sales in 2007. Lagging Acura deliveries make that unlikely, he said last week. Still, Honda averted a larger blow: that Civic and Accord, cornerstones of success for 30 years, were falling behind competitors’ new compact and mid-size offerings.

‘Strong Again’

A poor review for the 2012 Civic by Consumer Reports sent shock waves through Honda. The company took the unusual tack of rushing out an upgrade -- what it calls a “major minor refresh” -- that improved Civic’s interior and added a stronger frame that gave it the best crash rating of any U.S. compact.

The revamped Civic and new Accord that came out in 2012 lifted Honda-brand car sales 8.8 percent, outpacing an industrywide average for cars of 5.6%, according to Autodata.

“Honda is definitely strong again and, if not boiling over, on a steady simmer in terms of progress and momentum,” said Karl Brauer, industry analyst at Kelley Blue Book.

Honda argues that if fleet sales are removed, it boasts 1 of the industry’s best growth rates in retail deliveries this year. Retail sales reflect only vehicles sold directly to individuals, rather than to businesses and rental-car companies.

Honda estimates less than 2% of its U.S. sales are to fleets. It eschews them to maintain higher resale values for retail buyers, U.S. senior vice president Mike Accavitti said.

Changing Landscape

Like Toyota, Honda is still adapting to an automotive landscape in which quality is a given and companies including GM, Ford Motor Co. and Hyundai Motor Co. now build some of the most compelling vehicles.

“Everybody is better than they used to be,” Brauer said. “You can’t be the clear or easy winner in any segment like you used to.”

Acura’s inconsistent car line has made the brand a laggard in recent years to BMW, Mercedes, Lexus and GM’s Cadillac and Volkswagen AG’s Audi unit. Sales peaked at 209,610 in 2005 and dwindled in 2009, when U.S. auto sales collapsed. Acura deliveries may reach about 163,000 units this year, based on the sales pace through November.

Iwamura said the mid-size TLX sport sedan that replaces the aging TL will be the biggest change for Acura in 2014.

The racing-style NSX that returns in 2015 will be Acura’s performance “halo,” Iwamura said. The car should sell for more than $100,000, he has said. The last units of the all-aluminum coupe were sold in 2007.

‘Big Kids’

Much as 2010 was a low point for Toyota, which had to battle a recall crisis, 2011 was similarly tough for Honda.

The Consumer Reports pan of the Civic came after Asian natural disasters in 2011 -- Japan’s earthquake and tsunami, and flooding in Thailand -- stalled Honda’s global production for months. A 2011 spike in the yen’s value made sales of Japan-built models such as the Fit subcompact unprofitable in the U.S.

Those setbacks, along with lackluster reviews for several Honda and Acura models, provided an opportunity to try a new approach, U.S. Executive Vice President John Mendel said in an interview last month in Los Angeles.

Honda has struggled with balancing a “small company mentality” with the fact that it now “is sitting at the big kids’ table,” he said.

To contact the reporter on this story: Alan Ohnsman in Los Angeles at aohnsman@bloomberg.net

To contact the editor responsible for this story: Jamie Butters at jbutters@bloomberg.net

 
#24 ·
BloomBerg


Honda Motor Co. (7267), which saw a 10% drop in U.S. Acura sedan sales last year, is creating a new group to plan business development for the premium brand.

Erik Berkman, president of Honda R&D Americas, will become executive vice president for the North American unit and division manager of the newly created Acura Business Planning Office, Honda said today in a statement. The Tokyo-based company didn’t provide any details on how the division will operate.

In December Tetsuo Iwamura, Honda’s executive vice president and current North American chief, said focusing on Acura, particularly its sedan lineup, was a top priority for the company. A 10% drop in combined sales of Acura’s ILX, TSX, TL and RLX sedans kept Honda from a goal of achieving record sales in 2013 and overshadowed gains for the brand’s more successful MDX and RDX sport-utility vehicles.

“Erik’s appointment to the new Acura Business Planning Office is a clear indication of the high priority we place on Acura,” Jeffrey Smith, a Honda spokesman, said in a phone interview. Berkman “brings very strong and dynamic leadership to the Acura brand,” he said.

Berkman, who joined Honda in 1982, led development of the 2004 TL sport sedan, among the most-successful cars in Acura’s history. He was head of North American research and development, the 1st U.S. engineer to hold that job.

Smith declined to comment on specific changes being considered for Acura or on how the Berkman-led group will operate. Berkman wasn’t available for comment.

The news of Berkman’s new assignment came after Honda today said it will name Hideko Kunii, a professor of engineering at Japan’s Shibaura Institute of Technology, as the 1st woman to join the company’s board.

Honda’s U.S. sales unit is based in Torrance, California, and the company’s North American headquarters are in Marysville, Ohio. Honda’s American depositary receipts fell 0.1% to $36.12 at the close in New York.
 
#25 ·
AutoNews


Honda Motor Co., which saw a 10% drop in U.S. Acura sedan sales last year, is creating a new group to plan business development for the premium brand.

Erik Berkman, president of Honda R&D Americas, will become executive vice president for the North American unit and division manager of the newly created Acura Business Planning Office, Honda said.

In a statement detailing several management changes in North America, Honda didn't provide any details on how the new Acura division will operate.

In December Tetsuo Iwamura, Honda's executive vice president and current North American chief, said focusing on Acura, particularly its sedan lineup, was a top priority for the company.

A 10% drop in combined sales of Acura's ILX, TSX, TL and RLX sedans kept Honda from a goal of achieving record sales in 2013 and overshadowed gains for the brand's more successful MDX and RDX SUVs.

Acura, the 1st premium auto line from an Asia-based automaker, is still struggling to define its image in the luxury category, said Ed Kim, an industry analyst for AutoPacific Inc. in Tustin, Calif.

“Acura for many, many years has been a brand without an identity,” Kim said. “They are good, solid, dependable, somewhat premium cars that don’t communicate any clear message about what they are. The best luxury brands stand for something.”


"Erik's appointment to the new Acura Business Planning Office is a clear indication of the high priority we place on Acura," said Jeffrey Smith, a Honda spokesman.

Berkman "brings very strong and dynamic leadership to the Acura brand," he said.

Berkman, who joined Honda in 1982, led development of the 2004 TL sport sedan, among the most-successful cars in Acura's history.

He was head of North American research and development, the 1st U.S. engineer to hold that job.

Smith declined to comment on specific changes being considered for Acura or on how the Berkman-led group will operate.

Berkman wasn't available for comment.

In the near term, Honda is adding the new TLX sedan to the Acura line this year to aid sales. The company also has said modifications are planned for Acura’s ILX compact sedan, including a more robust powertrain, followed by the 2015 return of the NSX “supercar,” a high-performance coupe.

The news of Berkman's new assignment came after Honda on Monday named Hideko Kunii, a professor of engineering at Japan's Shibaura Institute of Technology, as the 1st woman to join the company's board.
 
#26 ·
MotleyFool


Honda (NYSE: HMC ) is going all out to put its luxury brand Acura at the forefront in the North American market. With the largest number of high-net-worth individuals, or HNIs, in the world, the U.S. is the planet's biggest luxury car market. And with the economy shoring up, people are willing to splurge again -- Honda doesn't want to miss the opportunity. It has a billion-dollar plan to rev up the Acura brand. The stakes are high, but so are the rewards -- let's take a closer look at Honda's game plan.

The Acura ache
The 1st Japanese carmaker to roll out a premium line in the U.S. in 1986, Honda hasn't quite been able to leverage the lucrative U.S. luxury market. Acura sales peaked in 2005 at 209,610; since then, the brand witnessed a decline of over 20%. While sales have increased modestly in the past few years the tally in 2013 stood at 165,436, falling 8.1% short of Honda's target of 180,000.

The sedans -- ILX, TL, RLX and TSX -- have been the main drag, with combined sales of the 4 dropping 10% in 2013. The Acura fold also offers 2 sport-utility vehicles -- MDX and RDX -- that are quite popular and have added to sales. On 1 hand, the RDX gained a whopping 52% sales growth in 2013; on the other, the TSX lost 39%.

Honda has struggled to keep pace with competitors like Toyota's (NYSE: TM ) Lexus or General Motors' (NYSE: GM ) Cadillac. When compared with Acura, Lexus fairs far better. In 2013, Lexus sold 273,847 units in the U.S., which is 40% more than Acura. Even so, perhaps Toyota expects more out of Lexus because it has been pouring fresh investments into it.


The medicine
Despite a long history behind it, the Acura brand has not caught the fancy of the American car buyer, so much so that many don't even know the connection between Honda and Acura. What the brand possibly needs is a halo car to polish its image. A halo car is a brand's figurehead, a car everyone dreams of owning.

What halo cars can do for a brand is no secret. Among those who have found their x-factor is Ford. The Mustang brand has been around for the last 50 years and is still going strong. It gives Ford the perfect icing on its Fusions and Focuses. Toyota is also hunting for its halo, and has been toying around with mind-blowing concept cars like the FT-1, and is partnering with BMW for a sports car.

The Acura overhaul was started in 2012, and has spread over 3 years. In March 2013, the RLX sedan was introduced, and this year TLX will be launched, setting the stage for grand reentry of NSX, the brand's super sports car in 2015.

The NSX hit the roads in 1990 with an all-aluminum body -- a 1st in the U.S -- and a powerful 270-horsepower, 3.0-liter, V6 engine. But production was stopped in 2005. Honda is relaunching NSX for the halo effect; it will be a super sports car with a price tag above $100,000. The company has even planned a factory in Ohio at an investment of $70 million that will roll out the NSX by 2015.


Can it cure?
Overhauls, restructuring, remodeling are nothing new to the auto industry. Some get the desired result, others don't. In recent past, when GM got behind its struggling Cadillac, the efforts bore fruit. Models like the Cadillac ATS were rebuilt from scratch with a focus on design. Now, Cadillac is being positioned alongside BMW and Audi. The Cadillac CTS was named the 2014 "Car of the Year" by Motor Trend. Ford has been trying similar things with Lincoln, but with modest success.

Honda's efforts are also in the right direction. The most recent step taken by the company to address Acura's sagging U.S. sales is to constitute an Acura business group that will examine all its ailments. Honda has kept aside $1 billion for the revamp. No matter what it takes for the company to get its premium fleet back on track, it could be worth its while. Top of the line cars offer huge margins, and the U.S. luxury market is always a big draw with its size, both in terms of money and numbers.

Summing up
5 years back, the former president Honda had stalled all restructuring, including the comeback of the NSX, as recession raised its ugly head. Times they are a changin', and the company is doing well to respond quickly. If Acura gets rolling, Honda will be laughing its way to the bank and investors will get their money's worth.

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#27 ·
AutoNews

American Honda Splits Marketing & Sales Operation by Brand

Jeff Conrad, left, becomes general manager of Honda, and Mike Accavitti, right, becomes general manager of the Acura division.

American Honda has reassigned marketing boss Mike Accavitti to lead Acura, part of a restructuring of the automaker’s North American sales and marketing operation that will create separate divisions for the Honda and Acura brands.

Accavitti, currently in charge of marketing and product planning as senior vice president of automobile operations at American Honda, will add the newly created role of general manager of Acura Division. In that role, he will oversee all sales, marketing and parts and service operations for Acura in North America, while ceding product-planning duties and oversight of national marketing for the Honda brand.

Meanwhile, Acura sales boss Jeff Conrad will be promoted to senior vice president at American Honda and will take over all sales and marketing efforts for the Honda brand as general manager of the Honda Division.

The Honda and Acura divisions will be housed under a single operation, to be called American Honda Auto Division, led by current American Honda sales boss John Mendel. Conrad and Accavitti will report to Mendel.

The changes take effect April 1, the start of Honda’s next fiscal year. They will align Honda-Acura more closely with the structure used by Toyota-Lexus, Nissan-Infiniti and Volkswagen-Audi.

“This is going to group major activities for the Honda and Acura brands under dedicated brand leaders, allowing us to respond to the marketplace, focus on the customer and really do so with greater speed and efficiency,” Mendel said in a conference call today with reporters.

Previously, American Honda separated key operations by function, rather than by brand. For example, Accavitti oversees product planning and national marketing in his current role for Honda and Acura, while regional marketing initiatives were handled by American Honda’s sales division, led by Mendel.

Seeking direction for Acura

The reorganization coincides with a broader effort under way at American Honda to build the Acura brand into a stronger player in the luxury auto market. The marque has been criticized as traveling a “wandering road,” lacking a clear definition of what distinguishes it from German, Japanese and domestic competitors.

Acura has found success with its compact RDX and mid-sized MDX luxury crossovers, which are among the top sellers in their segments. But its cluttered lineup of front-wheel-drive sedans -- ILX, TSX, TL and RLX -- has foundered, failing to carve out significant market share. Acura car sales fell 10 percent last year, blunting its 21 percent surge in crossover sales and limiting the brand to a 6 percent gain overall.

A key to reviving its flagging sedan sales is the new TLX, which will replace the aging TL this spring. The TSX will leave the lineup.

During the call, Accavitti said the automaker wants Acura to stand on equal footing with its luxury rivals rather than being an entry- or midluxury brand. Acura will focus on ride and handling, leverage its Super-Handling All Wheel Drive technology and prioritize design, describing the direction as “luxury done the Acura way.”

“We see Acura as being every bit of a luxury brand as the Germans or the other Japanese or the domestics, to be honest,” Accavitti said. “We may have lost focus somewhere along the way from a product perspective, but that is strengthening. We have commitment from the very highest levels of Honda Motor Co. to give this brand what it needs to be more successful.”

Dedicated resources

The sales and marketing team overseen by Accavitti at Acura will be complemented by the recently created Acura Business Planning Office within Honda North America, the automaker’s r&d operation here. That group, led by Honda North America Executive Vice President Erik Berkman, will chart the product and strategic direction for Acura globally. Berkman, who was recently promoted from president of Honda r&d Americas, will oversee a 10-member team representing r&d, manufacturing, purchasing and other functions and will report directly to Honda Motor Co.

That team could lead to more resources being devoted to Acura, as Mendel said that Berkman is involved in discussions about potentially assigning Acura its own vehicle development budget.

“When you have someone like Erik Berkman fighting the fight daily for greater allocation of funds, you’ve got a pretty strong case,” Mendel said. “We’re looking at how that breaks out, but that is one of the potential benefits from this going forward.”

During the call, Mendel acknowledged the “on again, off again” criticisms of the Acura brand, and said these new moves reflect a recognition that Acura needs greater focus and resources to achieve its potential.

“There’s a greater recognition that we need dedicated resources and a dedicated organization to pull that through and not get ‘averaged out’ when you compare it to the Honda brand,” Mendel said. “There’s a lot of recognition that Acura should be and can be a much stronger brand than it is today, and that’s what I think you’re seeing us do.”

Conrad’s promotion makes him the automaker’s 1st executive to have oversight of both sales and marketing for the Honda brand in the United States.

Conrad is entering his 32nd year with American Honda after spending the last 5 in charge of Acura sales. He takes over the Honda Division as Honda prepares to launch the redesigned Fit subcompact this spring and a new Fit-based small crossover later this year, 2 models that Mendel described as being “critical in capturing our next generation of Honda customers.”
 
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