TSX69

Honda Forms New Acura Planning Arm After Sedan Sales Fall

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.

fsttyms1

Let me help them out a little.

1.) Better looking and Less Bland designs.
2.) A few options for people to be able to opt for.
3.) MARKETING. Fire who ever is in charge, And get some Quality marketing out there so people can see and want teh product

Legend2TL

Quote:

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

That's good, at least he was associated with a successful design

AZuser

You haven't seen the awesome Acura commercials Jerry Seinfeld did for Acura?

Moog-Type-S

This is great.
All of us "haters" have been saying this for well...like...forever!
Acura needs to change things and get a new, or any identity for itself.

Performance cars...nope. Luxury cars...kinda. Cars with a heritage and presence....nope (unless it's a polarizing presence).

It's not time for Honda to reset Acura!
Clear out the old opinions, the people who have been there for way to long. The apologists, the enablers, the bean counters.

Do it for real this time, Honda! Clean the slate. Develop an identity for what you are and want to be and pursue it whole-heartedly!

fsttyms1

I have. I told all my neighbors to watch them as well. They all ran out to get an Acura afterwards

ttribe

I bought 4.

TSX69

Acura Gains Drive American Honda Sales Results in February 2014

03/03/2014 - TORRANCE, Calif.

Accord, Civic, CR-V and Odyssey continue sales momentum
Acura light trucks rise 29.8 percent to set 5th consecutive monthly sales record

American Honda Motor Co., Inc. today reported February 2014 Honda and Acura vehicle sales of 100,405 units. Acura light trucks bucked the February trend, gaining 29.8 percent for the month on sales of 7,482 units. The Honda Division recorded sales of 88,860.

Honda
Even as the mainstream U.S. auto market slowed from a year ago, 2013 best-sellers Accord, Civic and CR-V earned sales of more than 20,000 units each in February, while Odyssey continued to pull in positive numbers.

Odyssey sales were up 4.6 percent with 8,945 units sold in February
CR-V rose 0.4 percent on sales of 20,759 units

"With the overall market catching its breath we're pleased that core models like Accord, Civic and CR-V each continue to gain more than 20,000 new customers each month," said John Mendel, executive vice president of automobile sales at American Honda. "It just shows once again that when quality and value are baked into the product, consumers will beat a path to your door."

Acura
Acura light truck sales topped even last year's torrid pace with a 5fth straight monthly record, rising 29.8 percent.

Acura Division sales bucked market trends with an increase of 1.6 percent overall on sales of 11,545 units
MDX sales continue to soar with a 54.9 percent increase on sales of 4,563 units last month
RDX posted its 22nd consecutive monthly sales record with sales up 4.2 percent with 2,911 units sold

kurtatx

^^^This only makes the sluggish sedan line more frustrating.

Edit: 8 ZDXs in a month. lol

dom

There's a good reason for sluggish ZDX sales. Its been discontinued for some time now, no marketing, probably little to no inventory etc... Same can almost be said of the TL and TSX. End of life, not a worry.

What's the excuse for the RLX and ILX though? As far as I'm concerned the RLX is DOA. They may as well get back to the drawing board. Nothing, not even the SH-AWD model will dig it out of the hole its in. The sooner they realize that and act the better. The refresh or FMC for the ILX can't come soon enough.

kurtatx

Using SH-AWD as a marketing tool is silly anyway. The acronym is too long, doesn't mean anything, and doesn't ring well with the general public.

Acura needs something performance oriented for sure. Who am I kidding? That won't happen.

AZuser

TSX... 911 sold.


ZOMG!!! RLX sales are up 2,212.6% compared to year ago numbers.

ttribe

Phew! Good thing I'm not the one who posted those thoughts. I might have been accused of trolling!

oonowindoo

you know there is something wrong with the company when you can sell 4 times of the $50k SUV more than your entry level $30k sedan.

kurtatx

Yes, well I just don't say "It's ugly" and fawn over my BMW at an Acura forum. I'm just being honest. The meaning of SH-AWD doesn't mean anything to the average consumer. I would guess that the largest single perception of the car is the badge on the front.

ttribe

Talk about a gross, and completely unfair, oversimplification.

Acura is losing the war for a variety of reasons, over-reliance on it's "tech" advances being but one of many.

kurtatx

You know what? You're right.

ttribe

Please, I never did such a thing. The only thing I can even remember including in a post regarding the BMW design element for the face of their cars over the years were a couple of pictures of their evolution in support of someone else's comment about just that.

I don't know why you've decided to have an issue with me, in particular, but you could at least do me the courtesy of looking more at the whole of my commentary about both brands. If you did so, with anything resembling intellectual honesty, you'd find I've been very complimentary of Acura's past and my criticisms are motivated by my desire to see the marque regain the elements that once made it great. On the flip-side, I've been very critical of various issues over at BMW. It just so happens that design isn't one of the areas where I see BMW having major problems (the X6 would be a notable exception ).

As it is, you've reduced my participation on this board (going on 10 years now) to a caricature to fit your (apparent) desire to paint me as a "troll". I'm simply calling B.S. on you (again).

YEH

There isn't nearly a bias against FWD-based luxury CUVs as FWD-based sedans, esp. as one goes up the price range.

This is why both Lincoln and Audi see CUVs as their biggest source for growth and why Lexus is expanding its CUV lineup.

Now, having said that, there's no reason why Acura couldn't do a lot better with the ILX and the TL (the TLX looks promising).

Otoh, Cadillac has done fairly well with the XTS, but it's a domestic brand that had a built in buyer base for large FWD luxury sedans (the new CTS is pretty much about conquest of import buyers).

Always thought the ILX was a pretty decent looking sedan but it is lacking in certain areas. If Acura fixes those areas with the refresh, sales of the ILX should recover (but for the next gen ILX, they really need to up the ante).

vybzkartel

And that is the problem, isn't it?!

Realizing that there's a problem is one thing, but fixing it sooner, rather that later is another!

The ILX is a decent looking girl with absolutely no efing personality. Boring!!!

The FWD RLX...not even a hit-it-and-quit-it!

The TLX looks good. And we all know the V6 SH-AWD will bring it. But kinda wirried about the I4.

Legend2TL

fsttyms1

Fixed

vybzkartel

Wait...have you seen it?

Edward'TLS

^^^^^

You must have missed all those (not quite) spy shots of the production TLX being testing all around the cities.

Legend2TL

You aren't helping your argument much.

Legend2TL

Which begs the question, are those pics of a pre-production final version or a long term test mule?

ttribe

Nice petty drive-by. I see no reason for you to insert yourself in that debate.

Legend2TL

Just acting like you and returning the favor

ttribe

Whatever. I'm not playing your game today. Go carry on your nonsense with someone else.

Legend2TL

Snarky response, check.

dom

Let it go guys.

vybzkartel

Spy shots of a white car with black tape criss crossed all over it?! Yeah sure! Next you'll tell me that a zebra is a black horse with white stripes, no? (BTW, that was meant as a joke. Nothing racist)

I meant if he had seen the production car!

fsttyms1

Ive seen the same one as you have with the plain bumpers and no flash to it.

vybzkartel

Maybe I'll that opinion after the NY auto show :wink:.

Fibonacci

Couldn't agree with you more. Who are the clowns at Acura's marketing department that make up these acronyms? Torque vectoring power oversteer is fun to experience, the acronym Acura chose, not so much. PAWS takes the cake for sure though.

fsttyms1

Every time i read or hear that i seem to picture a fluffy cat for some reason, and not what it stands for

vybzkartel

Oops...fixed.

TSX69

Will An Acura OverHaul Give Honda Motor Company Investors Their Money's Worth?

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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TSX69

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.”

dom

Ok, why does this all feel like the stuff we've been hearing from Honda about Acura for the last 3-4 years? We've heard all this "the brand has lost focus" stuff before and were promised change. Yet we still got the ILX and RLX. Sounds like a lot more lip service.