Acura: Sales, Marketing, and Financial News
04-23-2014, 02:31 PM
#2561
Senior Moderator
As tough auto industry assignments go, Mike Accavitti has 1 of the tougher challenges: turn around Acura.
The Honda luxury unit feels like it has lost its direction, unsure of what it is supposed to be. But in introducing a new TLX sedan, Accavitti thinks he has the car that can point Acura in the right direction.
That's because TLX embodies many of the 2 big qualities that Accavitti thinks will make the brand stand apart.
•"Superhandling." That's Acura's term for precise steering and handling. While many brands boast of it, Acura thinks it has the right technology to make it truly special. It's "incredibly quick and responsive," he says.
•Tech innovations. Honda is pouring some of its best engineering into TLX, starting with its 2.4- and 3.5-liter engines. The car is more rigid and drivers will "feel the torque" of its power right out of the gate. 1 innovation is a safety system that detects if the car is going off the road and steers it back on.
"We have to start somewhere," he says, "of bringing a renaissance to the brand starting with TLX," Accavitti says.•Tech innovations. Honda is pouring some of its best engineering into TLX, starting with its 2.4- and 3.5-liter engines. The car is more rigid and drivers will "feel the torque" of its power right out of the gate. 1 innovation is a safety system that detects if the car is going off the road and steers it back on.
He wants to make 1 thing clear, though. He'd love to improve sales, but he says he's not unhappy with where he's starting. "There's nothing wrong with the brand," he insists. Customers and car buyers in general have positive, if not warm, feelings toward it. It has a reputation for making solid products.
If there's any confusion around Acura, it's concerning individual models. With names like ILX, MDX and RDX, it's hard to sort them out. Though they replace models that just about everyone seemed to know and like, like Legend and Integra, Accavitti says he's in no mood to change names.
He says Acura will just have to work harder and perhaps spend more money to get people to know the vehicles it already has.
He's heartened that its models are typically cross-shopped against Germany's finest when car buyers start looking for luxury models. "We're doing some things right," especially when it comes to the crossover lineup. "We need to take these learnings to the sedan part of the business."
He has 1 high-attention vehicle in the wings that could solve a lot of Acura's problems when it comes to creating excitement and being better known. It's the NSX supercar.
"It's our trump card," he says. "It's the epitome of superhandling."
The car business really isn't that complicated, he says. "The key to everything is great product."
Between performance machines like TLX and NSX, he thinks he's got them.
Best engineering, 2 engines that make less power than the competition and are old designs.
They are still clueless
.
Last edited by fsttyms1; 04-24-2014 at 10:53 AM.
04-23-2014, 04:19 PM
#2562
Team Owner
"There's nothing wrong with the brand," he insists.
someone should have thrown a shoe at him when he said that.
There is nothing wrong???? look at the sedan sales # for the past 10 years.
His salary should be curved according to the sales # and let's see if there is really nothing wrong.
04-23-2014, 04:50 PM
#2563
The sizzle in the Steak
Honda is pouring some of its best engineering into TLX, starting with its 2.4- and 3.5-liter engines.
04-23-2014, 05:18 PM
#2564
Team Owner
you know the worst engines in Honda/Acura lineup just happened to be the same engines.
how can you call it the best engineering when that is all they got?
how can you call it the best engineering when that is all they got?
04-24-2014, 01:06 PM
#2565
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To be fair though I don't expect these executives to be like "ya we suck we dont know what are we doing, we dont know where we are heading." They can't really afford saying something like that. It's obvious that they know there are problems but they haven't quite figured out how to best solve these problems.
04-24-2014, 01:59 PM
#2566
Team Owner
The first step to solve a problem is to admit that there is a problem...
of course they won't say it like that But they should have said "they realized the sedan sales have not been ideal and they will be doing things differently from this point on"
The key word differently is enough.
of course they won't say it like that But they should have said "they realized the sedan sales have not been ideal and they will be doing things differently from this point on"
The key word differently is enough.
04-24-2014, 02:11 PM
#2567
The sizzle in the Steak
Acura turnaround in one word: COMPETE
Current Acura mantra: AVOID
Current Acura mantra: AVOID
04-24-2014, 04:41 PM
#2568
Senior Moderator
haha that's actually a great suggestion.
To be fair though I don't expect these executives to be like "ya we suck we dont know what are we doing, we dont know where we are heading." They can't really afford saying something like that. It's obvious that they know there are problems but they haven't quite figured out how to best solve these problems.
To be fair though I don't expect these executives to be like "ya we suck we dont know what are we doing, we dont know where we are heading." They can't really afford saying something like that. It's obvious that they know there are problems but they haven't quite figured out how to best solve these problems.
04-24-2014, 08:47 PM
#2569
Senior Moderator
This was posted over at TOV in the forums by someone who has info from recent dealer meetings.
Wow if true. Could they have possibly screwed up a launch any worse?
And
This is less surprising.
So what of the other new components to the Acura Division sedan lineup? The RLX Hybrid: The are 200 2014 Acura RLX Sport-Hybrids on a boat from Japan to California right now. The top selling 200 dealers will receive one. Then, another 25 2015 Acura RLX Sport-Hybrids will be given to the next 25 top selling dealers (201-225). The problem with this? There are 274 Acura dealers in the nation; meaning that while most dealer will only be so lucky to get one Acura RLX Sport-Hybrid, some will not be getting any at all for the time being. Making for abysmal sales for a flagship sedan.
And
Finally, what of the great savior? The halo car. The legend re-incarnate. The NSX. When can you see the Ferrari fighting, Porsche pounding, McLaren massacring supercar that Acura has been stringing you along with for the past two years with variations and ways to "colorize" them on their Facebook page in showrooms? The truth is, you can't... While you can drive down the local strip and see Nissan GTR's or the rare Lexus LFA sitting next to the big window at your local dealers just begging you to come in, saying, "take a look at me!", and while you're at it maybe this other car while you're here. Acura has for the moment decided that their own dealers can't even order the NSX. The client will have to go onto the site or maybe even an app, build their Acura NSX and order it for it to be delivered to the dealership.
That's right, Acura has become the Amazon of supercars.
That's right, Acura has become the Amazon of supercars.
Last edited by dom; 04-24-2014 at 08:53 PM.
04-25-2014, 01:37 AM
#2570
I can see it now.
"Supply"
Why is the RLX being outsold by most, if not, all of its competitors?
"Supply"
"Supply"
Why is the RLX being outsold by most, if not, all of its competitors?
"Supply"
04-25-2014, 11:27 AM
#2571
They should tie management pay to RLX sales.
04-25-2014, 11:32 AM
#2572
04-25-2014, 12:46 PM
#2574
Senior Moderator
I'm assuming that's for the remainder of 2014 only...
But I suspect we'll never see it in big numbers anyway. Not because no one wants an RLX but because Honda is simply not ready with the tech. Someone please correct me if I'm wrong but isn't availability also terrible for the Accord plug-in and hybrid? I don't think their new hybrid tech is fully baked yet or supplies for the parts needed are not there.... despite all there yapping about how great all their new hybrids are.
But I suspect we'll never see it in big numbers anyway. Not because no one wants an RLX but because Honda is simply not ready with the tech. Someone please correct me if I'm wrong but isn't availability also terrible for the Accord plug-in and hybrid? I don't think their new hybrid tech is fully baked yet or supplies for the parts needed are not there.... despite all there yapping about how great all their new hybrids are.
04-25-2014, 12:53 PM
#2575
Senior Moderator
As for the NSX this sounds more and more like we have decided to postpone production of this car for the time being.
04-25-2014, 02:05 PM
#2576
Senior Moderator
All I can say as a potential RLX Sport Hybrid consumer, with real money to spend on this, is WTF! if this is true.
Then again, as I keep saying, I'm that weirdo who actually gets what Acura is trying to do with the RLX Sport Hybrid and actually finds it cool, even without a stylish wrapper.
04-25-2014, 02:10 PM
#2577
The sizzle in the Steak
Nobody was going to buy the RLX anyway.
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04-25-2014, 05:23 PM
#2578
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I'm assuming that's for the remainder of 2014 only...
But I suspect we'll never see it in big numbers anyway. Not because no one wants an RLX but because Honda is simply not ready with the tech. Someone please correct me if I'm wrong but isn't availability also terrible for the Accord plug-in and hybrid? I don't think their new hybrid tech is fully baked yet or supplies for the parts needed are not there.... despite all there yapping about how great all their new hybrids are.
But I suspect we'll never see it in big numbers anyway. Not because no one wants an RLX but because Honda is simply not ready with the tech. Someone please correct me if I'm wrong but isn't availability also terrible for the Accord plug-in and hybrid? I don't think their new hybrid tech is fully baked yet or supplies for the parts needed are not there.... despite all there yapping about how great all their new hybrids are.
04-25-2014, 06:17 PM
#2579
I'm assuming that's for the remainder of 2014 only...
But I suspect we'll never see it in big numbers anyway. Not because no one wants an RLX but because Honda is simply not ready with the tech. Someone please correct me if I'm wrong but isn't availability also terrible for the Accord plug-in and hybrid? I don't think their new hybrid tech is fully baked yet or supplies for the parts needed are not there.... despite all there yapping about how great all their new hybrids are.
But I suspect we'll never see it in big numbers anyway. Not because no one wants an RLX but because Honda is simply not ready with the tech. Someone please correct me if I'm wrong but isn't availability also terrible for the Accord plug-in and hybrid? I don't think their new hybrid tech is fully baked yet or supplies for the parts needed are not there.... despite all there yapping about how great all their new hybrids are.
From the Honda Accord news thread....
Honda might be selling more hybrids if it could just get them to dealers. While the 2nd-generation Insight never lived up to sales expectations and production is ending, the Japanese automaker is seeing strong demand for the Accord Hybrid here and abroad. However, there is so much global consumer desire that it can't keep them in US showrooms.
The problem limiting the sales of the Accord Hybrid is its battery pack and its popularity in Japan. "There's a waiting list for the product," said Jeff Conrad, Honda general manager, to Ward's Auto about the sedan's US popularity. While the American Accord is built in Marysville, OH, the batteries are imported from Japan, where the model is quite popular. According to Ward's data, the automaker sold 2,414 examples of the hybrid version from October 2013 to February 2014 in the US, but it shifted 6,000 units in Japan in its 1st 3 months on sale. Conrad also admitted that the constrained supply is limiting the amount of marketing the automaker can do for the hybrid.
Honda spokesperson Chris Martin told Autoblog the company is working on a solution to increase production for the near future. "We are going to resolve the battery issue," he said.
Honda has had a rocky road in launching its hybrids. Conrad admits that the Insight never got much of a marketing push after its launch. The CR-Z faces an uncertain future as well. Sales of it are ending in Europe for the 2015 model year, and Ward's data indicates that Honda only sold 4,550 of them in the US last year.
04-25-2014, 06:51 PM
#2580
Senior Moderator
Hey, lets design, market and put into production a vehicle we dont have the necessary supply of parts. SMART...Someone in powertrain and purchasing should be smacked for not having the supply to meet the demand ahead of time.
04-25-2014, 08:06 PM
#2581
Senior Moderator
04-25-2014, 09:11 PM
#2583
Senior Moderator
LOL! V is going nowhere BTW. I just don't want to drive it in snowstorms any more, fun as it was to do for two winters.
04-29-2014, 07:48 AM
#2584
Safety Car
Marketing Daily
Acura doesn't just have a new car in the TLX sedan -- both a convergence and replacement for the TL and the TSX sedans -- it has a relatively new agency, Mullen, which last year introduced a new creative direction with the launch of the 2014 MDX SUV. And in March it got a dedicated marketing organization when Honda (finally) decided to cleave Honda and Acura. Mike Accavitti, who used to oversee marketing for both Honda and Acura brands at Torrance, Calif.-based American Honda Motor, became general manager of Acura, while former Acura head of sales Jeff Conrad became general manager of Honda.
Accavitti tells Marketing Daily that the new single-brand focus for him and Conrad makes more sense, although it doesn't necessarily make things any less challenging. "It's theoretically easier, but the breadth of my assignment is greater because it’s not just about marketing; I also have sales and service. But now I also have a singular focus on one brand, which is great."
He notes that until the separation of the brands in March, Honda and Acura brands had been marketed together under specific practices -- where, for example, social media and digital teams worked on programs for both marques. Honda was the beneficiary of that arrangement, and Acura not so much.
"We had been functionally organized, and when you have Honda selling 1.3 million vehicles per year and Acura 150,000, the natural tendency is to the higher-volume brand," he says. "Acura just wasn't getting the resources it required to take things to where it needed to be." He says that with Acura on its own, the company has the focus and resources to "Unleash Acura's potential."
The changes make North American EVP Eric Berkman the head of the new Acura Business Planning Office, a 10-member team. Accavitti says that structure includes a direct line from consumer insight to product development. "We now have a sales guy who reports both to me and to [Berkman]. This will be the conduit, the liaison between sales and customer feedback, so we are hard-wired now between product planning and sales. When the goal is to improve customer satisfaction this is how you really want to approach it: creating more avenues to get information from customers to development."
Accavitti says that with the TLX, which goes on sale this summer, helping to clarify the sedan portfolio (the ILX is the gateway car, the TLX the volume keystone, and the RLX the flagship), the company will put a greater marketing focus on cars this year. "Now that we have solid sedan lineup we will work on communications. We are fortunate in this case because we have a really good car. From a marketer's standpoint it's what you want. A product you can really get behind."
04-29-2014, 10:51 AM
#2586
Senior Moderator
"Now that we have solid sedan lineup we will work on communications. We are fortunate in this case because we have a really good car. From a marketer's standpoint it's what you want. A product you can really get behind.
04-29-2014, 11:25 AM
#2587
Accavitti says that with the TLX, which goes on sale this summer, helping to clarify the sedan portfolio (the ILX is the gateway car, the TLX the volume keystone, and the RLX the flagship), the company will put a greater marketing focus on cars this year. "Now that we have solid sedan lineup we will work on communications. We are fortunate in this case because we have a really good car. From a marketer's standpoint it's what you want. A product you can really get behind."
Great job, Acura.
05-01-2014, 01:47 PM
#2588
Safety Car
April 2014
05/01/2014 - TORRANCE, Calif.
CR-V sets new April record as Honda core models anchor on-going retail sales success
Acura light trucks set April record, continue unprecedented growth in 2014
American Honda Motor Co., Inc. today reported April 2014 Honda and Acura vehicle sales of 132,456 units—an overall increase of 1.1 percent (-2.8 percent based on the Daily Selling Rate, or DSR*)compared to April 2013. The Honda Division also saw in increase of 1.1 percent with April sales of 118,334. Acura division gained 1.6 percent on April sales of 14,122, with light trucks increasing 35.9 percent for the month on sales of 9,536 units. Year to date American Honda sales reached 457,810.Acura light trucks set April record, continue unprecedented growth in 2014
Honda
In the first four months of 2014, Honda continued its retail sales momentum despite an environment punctuated by a handful of companies applying heavy incentives and a significant reliance on fleet sales. Honda enjoyed steady growth in April with CR-V setting a new sales record, and Accord and Civic enjoying gains.
CR-V recorded sales of 28,485, up 7.4 percent for a new April record
Accord posted April sales of 34,124, an increase of 1.7 percent
Civic was up 4.4 percent to 27,611 units vs. April 2013
"After a few truly chilling winter months, it's great to see the warmer spring weather begin to liberate our customers and spark record sales of CR-V and solid sales results across the lineup," said Jeff Conrad, Honda division senior vice president and general manager. "More than any other automaker our success is based on one customer at a time going down to their Honda dealer to purchase a new vehicle, and in April, we see the power of our retail sales strategy at work."Accord posted April sales of 34,124, an increase of 1.7 percent
Civic was up 4.4 percent to 27,611 units vs. April 2013
Acura
Acura light trucks continue to sell well above last year's pace, led by the hot-selling MDX and RDX. However, vehicle supply is becoming a factor as Acura begins winding down production of TSX and TL models in preparation for the new TLX models, which are scheduled to hit the ground later this year.
Acura division sales increased 1.6 percent vs. 2013 with 14,122 units sold in April
Acura trucks set a new April sales record with an increase of 35.9 percent on sales of 9,536
MDX posted another major increase with sales up 80 percent in April
RDX sales increased for an unprecedented 24th month in a row, climbing 6.3 percent
"With RDX posting two solid years of continuous growth and MDX sustaining its hot sales pace, our Acura SUVs continue to set the standard in the luxury light truck segment," said Mike Accavitti, Acura division senior vice president and general manager. "In a few short months, we will unleash the all-new 2015 Acura TLX to reestablish Acura's reputation for thrilling luxury performance sedans and establish the Acura brand as a force to be reckoned with in the luxury segment."Acura trucks set a new April sales record with an increase of 35.9 percent on sales of 9,536
MDX posted another major increase with sales up 80 percent in April
RDX sales increased for an unprecedented 24th month in a row, climbing 6.3 percent
05-01-2014, 01:56 PM
#2589
Moderator
"In a few short months, we will unleash the all-new 2015 Acura TLX to reestablish Acura's reputation for thrilling luxury performance sedans and establish the Acura brand as a force to be reckoned with in the luxury segment."
BTW, RLX = Unmitigated Disaster.
05-01-2014, 02:20 PM
#2590
Team Owner
I think we have established RLX was DOA prior its release date.
This is just the 1st year.
This is just the 1st year.
05-01-2014, 05:47 PM
#2592
What's even more telling - they're lumping the RL into the RLX numbers - & because they're such poor sellers the number is still low.
05-01-2014, 10:04 PM
#2593
05-02-2014, 11:17 AM
#2594
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This is what Colin @ TOV said:
Doesn't matter if it's a supply or demand issue, it seems like Acura sedans will continue falling in the next few months.
Sedan sales are going to get worse before they get better. No TSX production since Jan. No TL production since Feb. No ILX production since Mar-April. No RLX production since ... not sure.
2015 ILX set to start in June, 2015 TLX starts in July and 2015 RLX not sure but assumed under way.
2015 ILX set to start in June, 2015 TLX starts in July and 2015 RLX not sure but assumed under way.
05-02-2014, 12:04 PM
#2595
MDX put da team on its back doe
Those sedan sales are abysmal!
Those sedan sales are abysmal!
05-02-2014, 12:15 PM
#2596
I drive a Subata.
iTrader: (1)
Can't believe there are people who are buying ILXs.
That thing looks TERRIBLE in person.
That thing looks TERRIBLE in person.
05-02-2014, 12:50 PM
#2597
Team Owner
05-02-2014, 12:53 PM
#2598
Its a luxury Civic, fortunately or unfortunately, depending on perspective.
05-02-2014, 01:06 PM
#2599
I drive a Subata.
iTrader: (1)
Too bad, the regular Civic looks better than its lux version.
No, I take that back. Civic AND ILX both look terrible.
Accord however is
No, I take that back. Civic AND ILX both look terrible.
Accord however is
05-02-2014, 01:42 PM
#2600
This is what Colin @ TOV said:
Doesn't matter if it's a supply or demand issue, it seems like Acura sedans will continue falling in the next few months.
Sedan sales are going to get worse before they get better. No TSX production since Jan. No TL production since Feb. No ILX production since Mar-April. No RLX production since ... not sure.
2015 ILX set to start in June, 2015 TLX starts in July and 2015 RLX not sure but assumed under way.
2015 ILX set to start in June, 2015 TLX starts in July and 2015 RLX not sure but assumed under way.
But the question is why has there been no production of the ILX since Mar-Apr and RLX since __?___ ? My guess is there's no point in building more of them when the demand isn't really there, especially for the RLX which has seen sales decline since its peak in Oct. 2013.
The problem with this is that if someone, for instance, wanted an ILX or RLX in a certain color and/or configuration and it wasn't available because production is down, then that person may end up buying another brand, so yeah it's possible sedan sales may fall more than if production wasn't halted.
Add to this the TLX delay.
Last edited by AZuser; 05-02-2014 at 01:45 PM.