Acura sets its sights on 200,000 U.S. sales
04-19-10, 07:29 AM
#1
Guest
Posts: n/a
Acura sets its sights on 200,000 U.S. sales
http://www.autonews.com/apps/pbcs.dl...#ixzz0lYPQFiUW
Its sad but you read what their executive(s) say today and its clear they have no clue what they are doing and refuse to admit mistakes which is sadly way to similar to what they said in the past.
Seeking a comeback
Acura's goal: Hit 200,000 again
U.S. Sales Market Share
2005 209,610 1.23%
2006 201,223 1.22%
2007 180,104 1.11%
2008 144,504 1.09%
2009 105,723 1.01%
Source: Automotive News Data Center
Its sad but you read what their executive(s) say today and its clear they have no clue what they are doing and refuse to admit mistakes which is sadly way to similar to what they said in the past.
Acura sets its sights on 200,000 U.S. sales
Small model could be part of broad plan to redefine lineup
Mark Rechtin
Automotive News -- April 19, 2010 - 12:01 am ET
Read more: http://www.autonews.com/articl...QFiUW
NEW YORK -- Acura plans more differentiation among its products and may add a smaller vehicle in an effort to double sales.
Honda's luxury brand has fallen hard during the recession. U.S. sales dipped 27 percent to 105,723 vehicles last year. But John Mendel, executive vice president of sales at American Honda Motor Co., said he is aiming at 200,000 -- a level Acura last reached in 2006.
Mendel did not say when he expects Acura to hit that mark but said a new strategy is in the works.
"You will see a clear definition within the portfolio of small, medium and large vehicles," he said. "There will be less blurring between capabilities. There potentially is room for some expansion as well."
Acura is taking a close look at small-premium cars such as the Volvo C30, Audi A3 and BMW's upcoming front-wheel-drive cars. Acura made its early gains with the Integra and RSX in the 1980s and 1990s before killing the RSX after the 2006 model year as the brand tried to move upmarket.
"Those cars were about performance and fun," Mendel said. "We can build on that."
But he said Acura "never had a really clear direction, other than as an intercept brand, a utility player."
Said Mendel: "Everyone considered us entry-luxury or near-luxury. Now we are clearly defining this area of smarter luxury. We have a very strong direction."
Dave Conant, a multiline dealer with a new Acura store in Mission Viejo, Calif., said he doesn't know how quickly Acura can manage such a turnaround.
"I wouldn't bet on those volumes in the next several years, but I wouldn't bet against Honda's ability to pull it out in time," Conant said.
Signs of recovery
Acura already is showing signs of recovery, according to Edmunds.com. Buyer consideration of the brand has been rising since September and is at a three-year high.
Acura is suffering no more than the industry overall," said Edmunds analyst Ivan Drury. He added: "Others in the segment have fared far worse."
But Todd Turner, a consultant with Car Concepts in Thousand Oaks, Calif., said Acura is not popping up on shopping lists.
"The brand has polarized its design to such a degree that only a mother could love it," Turner said. "Acura's consideration set is neutral, which basically means they are in a holding pattern for the foreseeable future."
Mendel disagreed.
"We don't have any baggage," he said. "We're not anchored by people saying that the brand is too old, too stodgy or too opulent for them. The naysayer says we are not strongly defined. But that means we can be what we want to be and not worry about perception. This is an opportunity for us."
Problem: Closing the deal
Lincoln Merrihew, an analyst for the Boston market researcher Compete, said that if Acura has a problem, it is not attracting consumer interest; it's converting those shoppers into sales.
According to Compete, Acura converted 21.9 percent of shoppers into sales in 2007. That dropped to 18.8 percent in 2008 and just 13.7 percent in 2009.
Acura's market share has declined as well during the past five years, and the sales slump has been felt across the entire lineup. Acura's volume leaders, the TL sedan and MDX crossover, once sold 75,000 and 60,000 units, respectively. But they fell to just half those amounts last year.
Mendel said as-yet-unveiled products "in the middle of the lineup will give a more clearly defined hierarchy to the brand that isn't so defined today."
Meanwhile, Acura will evolve away from the extreme design used for the ZDX crossover. Mendel said future vehicles will be less polarizing.
"In order to create a ripple, you have to create a splash," he said. "The ZDX sets a tone. We were countering the criticism that Acura was bland. The strength of keen-edge design is in the lines, surface tension where the metal bends. You will see that more and more."
Small model could be part of broad plan to redefine lineup
Mark Rechtin
Automotive News -- April 19, 2010 - 12:01 am ET
Read more: http://www.autonews.com/articl...QFiUW
NEW YORK -- Acura plans more differentiation among its products and may add a smaller vehicle in an effort to double sales.
Honda's luxury brand has fallen hard during the recession. U.S. sales dipped 27 percent to 105,723 vehicles last year. But John Mendel, executive vice president of sales at American Honda Motor Co., said he is aiming at 200,000 -- a level Acura last reached in 2006.
Mendel did not say when he expects Acura to hit that mark but said a new strategy is in the works.
"You will see a clear definition within the portfolio of small, medium and large vehicles," he said. "There will be less blurring between capabilities. There potentially is room for some expansion as well."
Acura is taking a close look at small-premium cars such as the Volvo C30, Audi A3 and BMW's upcoming front-wheel-drive cars. Acura made its early gains with the Integra and RSX in the 1980s and 1990s before killing the RSX after the 2006 model year as the brand tried to move upmarket.
"Those cars were about performance and fun," Mendel said. "We can build on that."
But he said Acura "never had a really clear direction, other than as an intercept brand, a utility player."
Said Mendel: "Everyone considered us entry-luxury or near-luxury. Now we are clearly defining this area of smarter luxury. We have a very strong direction."
Dave Conant, a multiline dealer with a new Acura store in Mission Viejo, Calif., said he doesn't know how quickly Acura can manage such a turnaround.
"I wouldn't bet on those volumes in the next several years, but I wouldn't bet against Honda's ability to pull it out in time," Conant said.
Signs of recovery
Acura already is showing signs of recovery, according to Edmunds.com. Buyer consideration of the brand has been rising since September and is at a three-year high.
Acura is suffering no more than the industry overall," said Edmunds analyst Ivan Drury. He added: "Others in the segment have fared far worse."
But Todd Turner, a consultant with Car Concepts in Thousand Oaks, Calif., said Acura is not popping up on shopping lists.
"The brand has polarized its design to such a degree that only a mother could love it," Turner said. "Acura's consideration set is neutral, which basically means they are in a holding pattern for the foreseeable future."
Mendel disagreed.
"We don't have any baggage," he said. "We're not anchored by people saying that the brand is too old, too stodgy or too opulent for them. The naysayer says we are not strongly defined. But that means we can be what we want to be and not worry about perception. This is an opportunity for us."
Problem: Closing the deal
Lincoln Merrihew, an analyst for the Boston market researcher Compete, said that if Acura has a problem, it is not attracting consumer interest; it's converting those shoppers into sales.
According to Compete, Acura converted 21.9 percent of shoppers into sales in 2007. That dropped to 18.8 percent in 2008 and just 13.7 percent in 2009.
Acura's market share has declined as well during the past five years, and the sales slump has been felt across the entire lineup. Acura's volume leaders, the TL sedan and MDX crossover, once sold 75,000 and 60,000 units, respectively. But they fell to just half those amounts last year.
Mendel said as-yet-unveiled products "in the middle of the lineup will give a more clearly defined hierarchy to the brand that isn't so defined today."
Meanwhile, Acura will evolve away from the extreme design used for the ZDX crossover. Mendel said future vehicles will be less polarizing.
"In order to create a ripple, you have to create a splash," he said. "The ZDX sets a tone. We were countering the criticism that Acura was bland. The strength of keen-edge design is in the lines, surface tension where the metal bends. You will see that more and more."
Acura's goal: Hit 200,000 again
U.S. Sales Market Share
2005 209,610 1.23%
2006 201,223 1.22%
2007 180,104 1.11%
2008 144,504 1.09%
2009 105,723 1.01%
Source: Automotive News Data Center
Last edited by LexFather; 04-19-10 at 07:32 AM.
04-19-10, 07:37 AM
#3
I believe they can hit 200,000 units. It'll just take 3 years total 
It's such a shame their designs are ugly (TSX is tolerable). They are definitely good cars.....but just too offensive looking.
Hopefully they do what they say and drift away from the current design.
It's such a shame their designs are ugly (TSX is tolerable). They are definitely good cars.....but just too offensive looking.
Hopefully they do what they say and drift away from the current design.
04-19-10, 08:39 AM
#6
Lexus Fanatic
Meanwhile, Acura will evolve away from the extreme design used for the ZDX crossover. Mendel said future vehicles will be less polarizing.
Where Acura really screwed up in the past, as I see it, was in dropping the Integra. That, IMO, was the single dumbest move they made in their whole history. The Integra sold very well (especially with younger people), was a superbly well-built car (I see a fair number of samples today which are virtually as solid as the day they were built), and seemed to be their bread-and-butter car. Acura's problem was that they didn't see (or know) a good thing when they had it. The RSX, though not a bad car by any means, just wasn't the same. You can't make up for dumb decisions like this in the past by putting on even dumber things like parrot-beak grilles and Munchkin-size rear rooflines.
The present-generation RL, of course, is a superb car in a number of ways, but, though sales are significant in my area, has not won much acceptance nationwide.
Last edited by mmarshall; 04-19-10 at 08:43 AM.
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04-19-10, 08:46 AM
#8
That, right there, is one sign of hope. Another, I think, will be the upcoming TSX Sportwagon....a nice design.
Where Acura really screwed up in the past, as I see it, was in dropping the Integra. That, IMO, was the single dumbest move they made in their whole history. The Integra sold very well (especially with younger people), was a superbly well-built car (I see a fair number of samples today which are virtually as solid as the day they were built), and seemed to be their bread-and-butter car. Acura's problem was that they didn't see (or know) a good thing when they had it. The RSX, though not a bad car by any means, just wasn't the same. You can't make up for dumb decisions like this in the past by putting on even dumber things like parrot-beak grilles and Munchkin-size rear rooflines.
The present-generation RL, of course, is a superb car in a number of ways, but, though sales are significant in my area, has not won much acceptance nationwide.
Where Acura really screwed up in the past, as I see it, was in dropping the Integra. That, IMO, was the single dumbest move they made in their whole history. The Integra sold very well (especially with younger people), was a superbly well-built car (I see a fair number of samples today which are virtually as solid as the day they were built), and seemed to be their bread-and-butter car. Acura's problem was that they didn't see (or know) a good thing when they had it. The RSX, though not a bad car by any means, just wasn't the same. You can't make up for dumb decisions like this in the past by putting on even dumber things like parrot-beak grilles and Munchkin-size rear rooflines.
The present-generation RL, of course, is a superb car in a number of ways, but, though sales are significant in my area, has not won much acceptance nationwide.
04-19-10, 09:13 AM
#9
Lexus Fanatic
Yes, in some ways, I'll agree. The Legend was also a superbly-built car, except for some clutch problems in the few manual-transmission versions built (yes, there actually were some). But it did not seem to sell in the big numbers the Integra did. The Integra, especially the 2-door coupe, was especially popular, of course, with the young, caps-on-backward crowd.
04-19-10, 09:21 AM
#10
Lexus Fanatic
Originally Posted by 1SICKLEX
Its sad but you read what their executive(s) say today and its clear they have no clue what they are doing and refuse to admit mistakes
04-19-10, 09:29 AM
#11
Too little, too late. Nobody wants to associate with Acura's anymore, and their pricing as of late is laughable.
Their brand is so laughable and irrelevant, even the spell check in my browser thinks Acura is some misspelled word, but it knows how to spell Hyundai
Their brand is so laughable and irrelevant, even the spell check in my browser thinks Acura is some misspelled word, but it knows how to spell Hyundai
04-19-10, 09:36 AM
#12
Lexus Fanatic
04-19-10, 09:36 AM
#13
Lexus Fanatic
Looking back at Acura's successes way back in the past is not the answer. The premium market has changed and has become even more competitive for premium cars/SUVs and Acura has not changed with it. Glad to see they recognize the impact of lame styling.
