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Makes sense for Acura to funnel the lions share of resources torwards the MDX and the Integra. One is their highest profit margin car, and the other is a volume gateway car they need to succeed in order to win future sales.
I take that back about funneling resources to the Integra line. Even here in California, dealerships are starting to get overloaded with Integras. One of my local dealership has 35 either on the lot or in transit. Suffice to say the ADMs are all completely gone. They're all selling them for MSRP now. At that price, I might be intersted, because the Civic Si is still commanding a 10K ADM locally. That actually makes it more expensive than the Integra 6MT....
Very surprised the RDX is doing so poorly considering its typical compact SUV ranking. The Integra is a new car so demand is understandably high but nearly twice as many Integras sold as RDXs?!!!
Very surprised the RDX is doing so poorly considering its typical compact SUV ranking. The Integra is a new car so demand is understandably high but nearly twice as many Integras sold as RDXs?!!!
They aren't making many RDX's right now. Makes sense since the MDX is more profitable, so why build the RDX when you can't even build enough MDX?
They aren't making many RDX's right now. Makes sense since the MDX is more profitable, so why build the RDX when you can't even build enough MDX?
From all that I've read, there are way too many MDXs sitting on lots right now. I'm sure Acura wasn't planning to be a heavy discounter (esp on MDX Type S) when everyone else is selling at close to MSRP.
Did you notice the MDX count at your dealership when you picked up your Integra?
I was going to reiterate that some of these sales numbers may be impacted by what is available to sell and/or where Acura is dedicating resources (profitability / margin, etc.)
From all that I've read, there are way too many MDXs sitting on lots right now. I'm sure Acura wasn't planning to be a heavy discounter (esp on MDX Type S) when everyone else is selling at close to MSRP.
Did you notice the MDX count at your dealership when you picked up your Integra?
I did. There was not many, maybe a half dozen regular ones and 3 or 4 Type S.
American Honda November sales totaled nearly 80,000 units
Honda crossovers lead the way with all-new CR-V sales of almost 20,000 units and all-new HR-V over 9,000 units, logging its best month since June
All-new Pilot goes on-sale in December and is already generating strong pre-sale activity
Accord tops 13,700 units and Accord Hybrid posts eighth monthly record in 2022, topping 3,300 units
Excitement of Civic Type R begins with first customer deliveries
North American Car of the Year finalist Acura Integra again tops 2,200 units and leads premium gateway segment in 2022 sales after just 6 months on the market
Acura sales led by MDX, which overcame inventory issues to reach sales of over 4,000 units
Makes sense for Acura to funnel the lions share of resources torwards the MDX and the Integra. One is their highest profit margin car, and the other is a volume gateway car they need to succeed in order to win future sales.
Originally Posted by ELIN
Very surprised the RDX is doing so poorly considering its typical compact SUV ranking. The Integra is a new car so demand is understandably high but nearly twice as many Integras sold as RDXs?!!!
Originally Posted by fiatlux
Honda continuing to prioritize Integra and MDX sales (for good reason).
It doesn't make sense for Acura to prioritize the Integra over the RDX, or at the very least by as much as they are doing.
Understand that the Integra is the newest model (and that Acura wants to see that bringing back the heritage nameplate rubs off on rest of the brand), but the volume gateway these days is the entry level CUV and not a sedan.
Also, despite the difference in stages of life cycle, one would think that the margins on a higher priced CUV are still higher than a sub entry level sedan, unless Acura saw signs of them having to discount the RDX despite the supply crunch.
It doesn't make sense for Acura to prioritize the Integra over the RDX, or at the very least by as much as they are doing.
Understand that the Integra is the newest model (and that Acura wants to see that bringing back the heritage nameplate rubs off on rest of the brand), but the volume gateway these days is the entry level CUV and not a sedan.
Also, despite the difference in stages of life cycle, one would think that the margins on a higher priced CUV are still higher than a sub entry level sedan, unless Acura saw signs of them having to discount the RDX despite the supply crunch.
We're talking a $12.6k spread in ATP btwn the Integra and RDX.
ATPs for the RDX may be higher, but a couple things to consider.
First, given how relatively simple the Integra is compared to the RDX, it's possible they can build more Integras than RDXs given the constraints that they have. In terms of profit margins, I bet the Integra is higher given that they're primarily selling fully loaded units, and costs are relatively low given that this is essentially a Civic, built on the Civic line, using Civic parts. Then of course you have the gateway aspect; a $50K car is not much of a gateway for Acura when their flagship SUV is $60K.
^ Considering that the RDX started at $40.6k and the Integra starts at $30.8k, it's likely that the RDX is just, if not more profitable..
Plus, which buyer 5-8 years from now is more likely to move up to the MDX?
Mercedes, with the GLC, is selling more than twice the number of the C Class.
Which one do you think they see as being more the gateway vehicle to future GLE and GLS sales?
Why doesn't Honda shift more production towards the Civic and away from the CR-V (which is outselling the Civic by nearly 2:1), since the Civic, at its pricepoint, would be more the gateway model?
^ Considering that the RDX started at $40.6k and the Integra starts at $30.8k, it's likely that the RDX is just, if not more profitable..
Plus, which buyer 5-8 years from now is more likely to move up to the MDX?
Mercedes, with the GLC, is selling more than twice the number of the C Class.
Which one do you think they see as being more the gateway vehicle to future GLE and GLS sales?
Why doesn't Honda shift more production towards the Civic and away from the CR-V (which is outselling the Civic by nearly 2:1), since the Civic, at its pricepoint, would be more the gateway model?
The thing is that they're not selling $30K Integras. They're selling $38K Integras. That makes it immensely profitable when it comes to margins. The problem with the RDX is that top end RDX buyers are likely cannibalizing from MDX sales, so incrementality is going to be lower. As for the question who is more likely to buy an MDX in 5-7 years, the question should really be: what are RDX buyers going to buy if there are no RDXs available? The answer: MDX. Integra sales may cannibalize TLX sales, but that car has its own separate issues in the lineup. Now, if Acura actually had a real entry-level crossover (say, the CDX), then I would expect them to start pumping those out instead of the Integra. The RDX is Acura's entry-level crossover only because it's their cheapest offering, but it doesn't mean that it makes a good gateway car. A $50K ATP car is not a gateway car for a brand whos flagship ATP is $60K. 30 year old $50K RDX buyers aren't buying $60K MDX's when they're in their 40s; they're buying $90K X7 or GLS's.
As to your question why they don't shift CRV production to Civic, the answer is that neither are gateway cars, and mainstream automakers don't need gateway cars. If they did, they wouldn't be axing cars like the Fit, Yaris, etc. left and right. Profit (and margins) and those cars are extremely low for one thing, and secondly there's no "grooming" of customers who buy those cars. And as for Civic production, I suspect they actually are shifting some of the Civic production...but to the Integra. Considering that they're built on the same production line using by and large the same parts, it makes sense.
Unfortunately, both are towards the bottom, with only Volvo and Genesis doing worse. Both Volvo and Genesis I can see at the bottom: Volvo has a similar problem as Acura where the dealership experience varies heavily. Some of their dealerships are still from the Ford-ownership era and you get mainstream brand customer service for luxury car prices, and loaner cars are hit or miss because there's no formal loaner program. And then of course with Genesis, you get the Hyundai customer experience for Mercedes prices, which must be extremely off-putting.
Definitely surprised about Audi though; no idea what happened there.
The thing is that they're not selling $30K Integras. They're selling $38K Integras. That makes it immensely profitable when it comes to margins.
The SAME thing still applies to the RDX - they're not selling many $41k RDXs, but plenty of $51k+ RDXs (so the spread btwn base price and ATP is actually higher for the RDX).
Also, CUVs have a higher ATP baked in than sedans and the RDX is at a higher pricepoint (more comparable to the TLX with the commensurate higher margin), so if anything, it's the RDX that will have the higher margins.
Originally Posted by fiatlux
The problem with the RDX is that top end RDX buyers are likely cannibalizing from MDX sales, so incrementality is going to be lower.
As for the question who is more likely to buy an MDX in 5-7 years, the question should really be: what are RDX buyers going to buy if there are no RDXs available? The answer: MDX. Integra sales may cannibalize TLX sales, but that car has its own separate issues in the lineup.
If top spec RDX buyers wanted an MDX (and could afford it), they would have gotten an MDX.
Otoh, if RDX owners needs change (and and they can financially swing it), they are likely to become MDX buyers.
Higher end RDXs are competing against other like compact, lux CUVs and top of the line Pilots and Passports (so more likely to cannibalize those sales).
And if anything has shown, the Integra is cannibalizing TLX sales, and likely cannibalizes top end Civic and Accord sales, so this argument doesn't hold muster.
Originally Posted by fiatlux
The RDX is Acura's entry-level crossover only because it's their cheapest offering, but it doesn't mean that it makes a good gateway car. A $50K ATP car is not a gateway car for a brand whos flagship ATP is $60K. 30 year old $50K RDX buyers aren't buying $60K MDX's when they're in their 40s; they're buying $90K X7 or GLS's.
Again, the starting price for the RDX is $41k which is well below the ATP for lux branded vehicles.
The starting much, much less the ATP for the Integra, is less than that for what buyers are paying for the CTR, much less what people are paying for a mainstream compact CUV these days.
And sorry, most RDX who need to upsize are jumping to the MDX and not the GLS or X7.
As to your question why they don't shift CRV production to Civic, the answer is that neither are gateway cars, and mainstream automakers don't need gateway cars.
The answer is that Honda makes more in each CR-V sale than they do in each Civic sale.
And you're wrong, again.
If anything, mainstream brands need gateway vehicles more so than lux brands because b/c at that pricepoint, they are competing with used car buyers.
Now, in this day and age, if they can make a decent profit off those vehicles is a different matter.
At the $30-38k pricepoint, you're not competing against the premium market, much less the lux market.
Unfortunately, both are towards the bottom, with only Volvo and Genesis doing worse. Both Volvo and Genesis I can see at the bottom: Volvo has a similar problem as Acura where the dealership experience varies heavily. Some of their dealerships are still from the Ford-ownership era and you get mainstream brand customer service for luxury car prices, and loaner cars are hit or miss because there's no formal loaner program. And then of course with Genesis, you get the Hyundai customer experience for Mercedes prices, which must be extremely off-putting.
Definitely surprised about Audi though; no idea what happened there.
With all the Mazda fans on AZ, I’m not surprised it’s just about a wash with Acura on absolute SSI rating (I realize they’re in separate groups but the perception is they’re more alike than not).
American Honda Posts Positive Finish to Tough Sales Year as Increased Supply Helps Meet Strong Demand
January 4, 2023
American Honda posts best sales month since March: Honda and Acura combine to nearly 1M units in 2022
Honda posts second best month and quarter of 2022, taking brand above 880,000 in annual sales
Civic and Accord achieved their best sales of 2022 in December, with an annual record for Accord Hybrid
All-new CR-V and HR-V remain in hot demand with strong December sales restrained only by limited supply
Acura December sales top 10,000 units for the brand’s best month since April, and reaching 102,000 units for the year
All-new Acura Integra posts 3rd straight month topping 2,100 units to lead luxury gateway segment in 2022
MDX and RDX combine for over 7,500 sales in December in return to force as top-selling Acura models
American Honda2022\ “It’s no secret we have the best Honda and Acura product lineups in our history, and when we have the inventory to meet strong customer demand, our sales will continue to rebound,” said Mamadou Diallo, vice president of Auto Sales for American Honda Motor Co., Inc. “Like the rest of the industry, we aren’t out of the woods yet with supply issues, but we begin 2023 with roughly double the on-hand inventory of 2022 and the expectation that this will mean a healthy sales increase this year.”
BRAND REPORT Sales Highlights
With the all-new Pilot and Accord set to reach customers in January, Honda will continue to build on momentum gained in December heading into 2023. All-new CR-V sales top 19,000 units in December to lead the brand.
Civic and Accord record best monthly sales of the year in December, as 2022 Honda passenger car sales led by Accord (154,612 units).
Ridgeline posts strong December sales to finish 2022 up 3.4% (42,762 units) while increased supply gives Odyssey its best monthly sales of the year (8,004 units).
Model Notes All-new 2023 Pilot now on sale, the largest and most powerful Honda SUV ever and, with Pilot TrailSport, the most rugged.
All-new 2023 Civic Type R –now on sale sets a new hot hatch benchmark.
BRAND REPORT Sales Highlights
Acura posts best sales since April and will begin the year with more than three-and-a-half times the on-hand inventory compared to the start of 2022.
All-new Integra sales remain strong with 3rd straight month over 2,100 units making it retail #1 in segment in just 7 months on the market.
MDX tops 5,000 units in December sales making it the 2nd best sales month of 2022 and 4th consecutive month over 4,000 units. RDX has best month since April.
Model Notes Acura Integra Type S will join lineup this summer, delivering ultimate street performance and driver engagement.
Production of 2023 Acura TLX Type S PMC Edition has begun in three NSX-derived colors.
Acura, the Japanese premium brand owned by Honda, will no longer produce or sell cars in China. The information was announced officially by the company’s local partner, Guangzhou Automobile Group (GAC), which confirmed Acura’s shutdown in the People’s Republic.
In a statement sent to Reuters, GAC said it will continue to provide after-sales services to Acura customers in the country and will use its own dealership and service networks. Acura’s discontinuation in China won’t affect the operations of Honda, which will continue to produce and sell vehicles under its agreement with GAC.
Acura was originally launched in China back in 2016 and its sales peaked in 2019 when a total of 14,701 cars were delivered to customers. We don’t have data for 2022 yet but in 2021, the marque shifted only 6,554 cars in the country, down 45 percent compared to 2020. The only two available Acuras in China were the CDX and RDX SUVs, both being outsold by their respective competitors from the German premium brands.The future of the Acura employees in the country is also not known at the moment, though previously it was reported that they will be integrated into the GAC Honda business. Acura is not the only foreign brand to quit the Chinese market as just recently, Stellantis announced it is terminating its joint venture with GAC to produce and sell Jeep vehicles in the country. Some Jeep models will continue to be imported directly by Stellantis.
Acura to sell EVs in US online only going forward. That’s a significant shift in strategy. Hopefully the dealership lobby won’t take it the wrong way or try to sue them.
Acura Will Only Sell Its EVs Online Starting With The ZDX In 2024
The automaker hasn’t even revealed the crossover yet.
Jan 25, 2023 at 6:16pm ET By: Anthony Alaniz Update: An Acura spokesperson told Motor1.com that the company is working with its dealers to develop a frictionless digital shopping tool. The company's goal is to provide an easy way for customers to initiate the sales process online and allow them to transition it to their Acura dealer at any stage – early, late, or anywhere in between. However, delivery will still take place at the customer's Acura dealer. Development of the online shopping tool is ongoing.
"The dealers are really the center," said Emile Korkor, Acura's assistant vice president of sales. "They're the ones that create that bespoke experience, and, of course, they're going to help us make it simple and frictionless."
Acura hasn’t revealed the 2024 ZDX, but we know how it plans to sell it. The new electric vehicle, the brand’s first, will spearhead its plan to digitize American Honda and sell 100 percent of its EVs online, which start in 2024 with the ZDX and ZDX Type S. Pre-sales begin in 2023 ahead of its early 2024 release.
The architecture also underpins the new Honda Prologue, which will also see pre-sales start later this year. However, it’s unclear if Honda will implement the same sales strategy for its EV. However, Honda hasn’t said that the Prologue would be sold online. Deliveries for the Prologue also begin in early 2024. Honda revealed the Prologue in October, only providing a few details about the vehicle.
The photos Acura shared last month of the ZDX showed the crossover wrapped in bespoke camouflage, concealing the styling details. The automaker said it took inspiration for the ZDX’s design from the futuristic-looking Precision EV Concept.
Development for the ZDX has moved to real-world conditions. The provisional headlights and taillights indicate a lot of work is left. However, we should begin seeing test vehicles in public soon wearing less and less camouflage. The automaker is working toward perfecting the EV’s driving experience and road manners, which the company calls Precision Crafted Performance.
Acura’s effort to move new car sales online is another industry trend. The coronavirus pandemic forced many shoppers online, and dealers, automakers, and others have been scrambling to meet that demand.
However, many states have strict dealer franchise laws that ban direct sales from manufacturers, and it’s unclear how Acura’s plan will work with its dealer network. We reached out to the company for details about the plan, and are waiting for the automaker to provide some additional information. We’ll update the story when we hear back.
American Honda sales up 14.3% year-over-year as stronger inventory improves January sales start
Honda brand sales top 75,000 units (up 10%) as double the on-hand inventory compared to last year helps overcome impact of winter storms
Total CR-V sales top 20,000 units; CR-V hybrid sets all-time monthly record for a Honda hybrid model (9,551), fulfilling Honda electrification strategy to increase hybrid sales of core models
All-new Pilot and Pilot TrailSport begin reaching dealerships, with early sales results boosted by robust pre-sale activity
Acura MDX sets January sales record (4,455 units), leading Acura brand sales topping 9,000 units (up 66%)
Sales of the 2023 North American Car of the Year Acura Integra top 2,000 units for the 4th straight month
Acura is firmly in the middle of the pack which sounds about right. Methinks it'll start climbing up the ranks once the ILX owners filling out these surveys (with a well deserved score of 63) start getting replaced by Integra owners (who are scoring it at 77). Too bad the TLX is dragging everything down with a 61.
Also no surprise that Porsche is at the very top, and Infiniti is at the very bottom.
American Honda February Sales Navigate Multiple Issues; Acura Continues Strong Start in 2023
March 1, 2023
American Honda February sales near 85,000 units with strong start for Acura brand in 2023
MDX and Integra lead Acura sales with the brand topping 10,000 units in February
Sales of the 2023 North American Car of the Year™, the Acura Integra, top 2,000 units for the 5th straight month, maintaining its lead in the premium gateway segment
MDX tops 4,600 units; Type S boosts TLX sales in February
Sales of all-new volume Honda models (CR-V, Accord and Pilot) temporarily constrained by supply and logistics issues; models now heading to market with an anticipated boost to sales in March
February marks the first time the hybrid powertrain made up the majority of CR-V sales; CR-V hybrid also posted 2nd best month of all time
New 2-year lease on CR-V hybrid launching in ZEV states in anticipation of Honda EV sales starting in 2024
Return of LX trim for Civic and CR-V will help meet strong demand and offer new value for customers
Honda light trucks continue strong showing as Passport and Ridgeline post February sales records
It doesn't look bad. It just doesn't look good enough or is fast/strong enough to warrant the price.
I wonder why the RDX isn't selling as well as it used to.
And I think the ugly refresh of the Accord is showing in the sales numbers.
Because there aren't enough of them. Acura is prioritizing MDX production over RDX production because the former is more profitable. Case in point, my local dealership has 8 RDXs and 52 MDXs.
American Honda posts best sales since July 2021 as Honda and Acura March sales top 116,000 units
Honda sales reached 103,000, led by strong sales of electrified vehicles and new light truck models
Honda electrified models set monthly record with combined sales of CR-V and Accord hybrid-electric models
All-new CR-V logged 30,000 in sales for first time since July 2021; all-new Pilot, HR-V each top 10,000 units
Acura March sales achieved 13,500 units for best month since August 2021
All-new Acura Integra sold 3,000 for the first time; continues to lead luxury gateway segment. The high-performance Integra Type S will be revealed in April.
Acura MDX and RDX combined near 9,000 in March sales; MDX remains as top-selling Acura model
American Honda1Q "The strength of our all-new products is becoming clear as our inventory grows. Record sales of our electrified Honda CR-V and Accord and the best sales month yet for the all-new Acura Integra delivered our best first quarter in two years," said Mamadou Diallo, senior vice president of Auto Sales at American Honda Motor Co. Inc. "We expect this positive momentum to continue throughout the year as sales of SUVs and hybrid-electric models lead us toward our electrified future."
BRAND REPORT Sales Highlights
Honda sales reach 103,000 for the first time since July 2021 and the best 1st quarter in two years.
CR-V sales top 31,000 for the first time in nearly two years; CR-V hybrid posts best month and quarter of all time, with March sales of 18,000 units.
Accord hybrid achieves its best month of sales ever with 7,970 units.
Accord and Civic combine to lead Honda passenger car sales near 34,000.
All-new Pilot and HR-V each top 10,000 in March sales
Notes Civic lineup, all-new Accord and all-new CR-V earn coveted Car and Driver 10Best awards.
Five 2023 Honda models earn IIHS TOP SAFETY PICK rating or better.
BRAND REPORT Sales Highlights
Acura posts best monthly sales since August 2021 (13,569 units) as stronger inventory drives SUV and passenger car sales to their best results since 2021.
All-new Integra logs 3,000 in sales for the first time since June 2022 launch as Acura's gateway model maintains its hold as the retail #1 in segment.
MDX posts March sales of over 6,000, for its best month since March 2022 and best quarter since Q2 2021.
Acura passenger car sales remain strong with 4,622 units, for best month since July 2021
Notes All-new turbocharged Integra is the 2023 North American Car of the Year™.
The high-performance Integra Type S will be revealed in April.
Operations and production are improving at Honda mostly, still curious which chips were the large stifling of their SCM problems. I know it wasn't NXP or MicroChip.
Stronger inventory of new and refreshed models helps American Honda post double-digit sales gains to reach 116,000 units in April
Honda Brand
Honda tops 102,000 units in April, up nearly 25% for the month with strong sales across the lineup
Honda electrified models set monthly sales record with CR-V and Accord hybrid-electric models nearing 60% of sales mix
All-new CR-V exceeds 30,000 units for 2nd straight month with hybrid sales of 18,264 units
Honda light trucks remain strong with all-new Pilot (9,949 units) and HR-V (8,970 units) in high demand; Odyssey (7,314) nearly doubles sales compared to April 2022; Ridgeline (4,903) posts best April since 2006
Honda’s continued commitment to the car segment pays off as combined sales of Civic and Accord sedans reach 35,614
The all-new Accord posts 19,297 units in April with record sales of hybrid models at 11,228 units
High turn rate helps Civic overcome limited supply to top 16,000 units
Acura Brand
Acura sales top 13,000 units for 2nd straight month, up more than 20% in April
All-new Integra posts best month since hitting dealer lots in June 2022, topping 3,300 units to continue leading premium gateway segment
Strong MDX sales of over 5,700 units push Acura light trucks past the 8,000-unit month mark
Seems like most of Honda's supply chain problems have been addressed judging from the 30% increase of sales YoY. CR-V sales are 31k/month which is not surprising considering how well received the 6G model.
@ TLX
Dec 22
YTD
Dec 2022
“It’s no secret we have the best Honda and Acura product lineups in our history, and when we have the inventory to meet strong customer demand, our sales will continue to rebound,” said Mamadou Diallo, vice president of Auto Sales for American Honda Motor Co., Inc. “Like the rest of the industry, we aren’t out of the woods yet with supply issues, but we begin 2023 with roughly double the on-hand inventory of 2022 and the expectation that this will mean a healthy sales increase this year.” 
All-new 2023 Pilot now on sale, the largest and most powerful Honda SUV ever and, with Pilot TrailSport, the most rugged.
All-new 2023 Civic Type R –now on sale sets a new hot hatch benchmark.
Acura Integra Type S will join lineup this summer, delivering ultimate street performance and driver engagement.
Production of 2023 Acura TLX Type S PMC Edition has begun in three NSX-derived colors.
Jan 2023
Civic lineup, all-new Accord and all-new CR-V earn coveted Car and Driver 10Best awards.
Five 2023 Honda models earn IIHS TOP SAFETY PICK rating or better.
All-new turbocharged Integra is the 2023 North American Car of the Year™.
The high-performance Integra Type S will be revealed in April.
