TSX69

Honda Aims for New Acura ILX to Help Keep Gen-Y Buyers Out of Lexus, BMW

Honda Motor Co., seeking to revive its Acura luxury brand, is introducing a sedan intended for younger buyers unable to afford higher-end marques. It’s part of an effort to improve Acura’s image with new models.

The compact ILX is aimed at “Generation-Y” drivers who are turning 30, Honda said at a briefing in Las Vegas this month. The sedan will start “well under $30,000” when it goes on sale in early 2012, and will be shown next month at the Detroit auto show, said Vicki Poponi, assistant vice president for product planning at Honda’s U.S. unit.

“The brand is in trouble,” said Jessica Caldwell, an analyst for researcher Edmunds.com. “The consensus for many of the current models is the vehicles just look bland. They have to do something to capture peoples’ emotions with styling.”

Acura, like the Honda brand, is struggling this year from reduced production triggered by natural disasters and a model line that hasn’t drawn as much attention as those of Volkswagen AG’s Audi, Bayerische Motoren Werke AG (BMW)’s BMW and Daimler AG (DAI)’s Mercedes-Benz. Acura sales slid 6.7% through November, compared with gains of 15% for Audi, 12 percent for BMW and 12% for Mercedes’ luxury models.

With its new models Tokyo-based Honda plans to tout Acura’s lineup as “smart luxury” vehicles that combine fuel efficiency, driving performance and value for money.

Gen-Y Emphasis

Sales for Acura will rise in 2012, buoyed by the ILX and a revamped RDX compact utility vehicle that’s also to be shown in Detroit in January, said John Mendel, Honda’s executive vice president of U.S. sales.

Honda expects to sell 40,000 ILX sedans annually. Acura brand sales totaled 110,170 this year through November. Mendel declined to provide Acura’s volume goal for next year.

While baby boomers account for the majority of luxury sales, Acura is preparing for their children, who are entering the auto market, said Michael Accavitti, Honda’s vice president of U.S. marketing. The group, born since about 1980, covers as many as 80 million people, he said.

“Gen-Y consumers aspire to luxury still, but they need some help getting there,” he said. “They are projected to be the 1t generation in the modern era to earn less than their parents.”

The ILX will be available with 3 powertrain options: a 2-liter engine with an automatic transmission; a sportier 2.4- liter, manual transmission model; and a hybrid version with a 1.5-liter engine, Poponi said. The ILX will be built at Honda’s Greensburg, Indiana, plant, which makes Civic compacts.

The revamped RDX also goes on sale next year, receiving a new V-6 engine in place of its current turbocharged 4-cylinder model. The new version will have both higher horsepower than the current RDX and “much improved” fuel economy, Poponi said.

NSX’s Return

Acura also plans other, more expensive models as it revamps its lineup.

A concept version of the NSX, Acura’s 2-seat supercar that left the line 5 years ago, will also be shown in Detroit. A concept version of the RL, Acura’s current top-end sedan, will be shown in New York in April, Poponi said.

The mid-engine NSX is to be the brand’s “halo” model, equipped with a new “sport hybrid all-wheel-drive” system for high-performance driving and fuel-efficiency, said Gary Evert, division leader for Acura research and development.

The NSX should go on sale “within 3 years” and probably can’t be sold for “less than $100,000,” Tetsuo Iwamura, Honda’s chief operating officer for North America, said in an interview in Las Vegas, without elaborating.
Roomier RL

“It’s definitely never a bad thing for a brand to have a high-dollar sports car, but the critical thing is RL,” said Ed Kim, industry analyst for AutoPacific Inc. in Tustin, California. “Acura has never achieved the status of the other Japanese luxury brands, mainly given the lack of a truly premium sedan.”

The current RL, starting at about $48,000, isn’t competitive with rival luxury sedans because “it’s grossly undersized for the segment,” lacking the roomy back seat expected by buyers of BMW’s 7-Series and Toyota Motor Corp. (7203)’s Lexus LS, Kim said.

That will change with the new RL, which will go from having “worst-in-class legroom to the best-in-class,” Poponi said. The new version will have BMW “7-Series cabin space, with the agility of a 5-Series,” she said.

After its 1986 start as the 1st premium Japanese auto line, Acura grew rapidly on U.S. demand for entry-level Integra sedans and midsize Legend sedans.

Acura has been on a “wandering road” since the 1990s, Jeff Conrad, the brand’s manager, said in Las Vegas. That’s the result of “inconsistent” product introductions, he said.

Sales peaked in 2005 at 209,610 on demand for Acura’s MDX sport-utility vehicle and midsize TL sedan.

“Acura is almost restarting themselves back to square one, and that’s not a bad thing” said Edmunds’s Caldwell. “But at the end of the day, styling is also critical, so if it’s not a nice-looking car, no one is going to buy it.”

krio

I was just thinking where is the new ILX thread...

krio

The Acura ILX is an upcoming entry-level luxury car for Honda's luxury brand Acura to replace both the Japan-built Acura TSX sedan & the Canada-exclusive Acura CSX[1] Like the preceeding CSX, it is based the ninth-generation Honda Civic. It will offer the same four-cylinder engines as the CSX & TSX, excluding the V6 engine from the TSX.

honda_nut

Honestly, if the TSX goes away and the new ILX is a dud, then Acura will be done for. They better have done their homework this time.

charliemike

A civic-based badge-engineered sedan with a 2L four-banger, a 2.4L four-banger, and a hybrid engine ... To compete with what exactly?

This sounds like a competitor for the Buick Verano and not a 3-series. And the Verano is going to have more power than this ILX.

Acura is done.

South Jersey CL

This is so true. I think Acura's styling is okay, but some of the styling features are just goofy/retarded in my opinion. The grills on all the new Acuras don't even make sense, and the ZDX just doesn't make sense in general. They need to lay off some of the "bold" styling features.

honda_nut

Exactly! It could be a 1-series, A3 competitor if they played their cards right. But then it would not make sense to kill off the TSX. I'm confused. Acura better blow my mind with some crazy good car or I'm out. Hello Infiniti.

dom

We don't yet know what's happening with the next gen TL. My bet is that it comes down a bit in size leaving no room for the TSX.

Ken1997TL

You're never happy, I've noticed this over the years.

If the price is right, it'll be a great vehicle. Buick? Really?

Misc-ura

Things are looking up but I would have kept the tsx the same size and added awd and a manual and introduced the ILX as a mercedes a-class, bmw 1series, and audi a3 competitor other then that I would say its a solid business plan

Moog-Type-S

I hope the design does not make me IL

biker

40K/yr in sales? Hmm.... I don't know.

dom

TSX is at 27.3 through Nov. Considering it should be cheaper, and the TSX won't be in the lineup alongside it, I don't see 40 as impossible. May even be underestimated.

Colin

As always, it'll come down the price and content. Especially since the drivetrains appear to be carryover from other products in the lineup. Some customers care only about performance, some care only about luxury, but all care about price. Or more specifically, what you get for the money. Acura as a brand as always been most successful when they offer high content at a reasonable price.

phee

iTrader: (5)

Moog-Type-S

So this IL...X

Is it named after that secret Isle where they are cloning the dinosaurs?

AZuser

If they're hoping this ILX will steal away buyers from BMW, Audi, etc., sorry not going to happen.

I wonder if this ILX is suppose to be the RSX replacement we've been hearing about.

biker

If Honda manages to upgrade the interior of the Civic at the MMC will we have a Canadian like Civic vs. CSX issue? Will people spend $X more for a tarted up Civic? From the descriptions it sounds like some/most of the sheet metal is different? That would certainly help.

dom

Good point. I think I read that Vicki Poponi described the differentiation as going from an Accord to a TL.

Steven Bell

iTrader: (2)

I'm interested to see how much different this new model will be. But I really want to see this ILX different from the Civic. Acura is supposed to be the luxury brand of Honda. But they're too similar....

03tLsNBP

iTrader: (9)

pics? renderings? or is it still too soon?

dom

There were some spy shots from back in Sept.

http://www.vtec.net/news/news-item?news_item_id=1003309

Colin

I seriously doubt it'll be that large a difference. I expect to have a much better interior, probably a couple 'clicks' more HP, but require premium fuel to get it. I'd guess that the footprint will fall within 1-2 inches of the Civic. I think it's been confirmed that it will have totally unique sheetmetal so that part of the comparison to the Accord/TL is accurate.

Moog-Type-S

SSFTSX

Acura will not be able to downsize TL to IS/3/A4 size because family based Accord roots.
while Civic Based car will be too small for 110inch wheel base A4/BMW 3 and future IS.
Every manufacturer is going to increase there offering A3 sedan is coming.
A4/A7/A6/A8. Four sedans in lineup.
IS/ES/HS/GS/LS. 5 sedans in lineup.


ILX $27K starting
TSX $32k starting
TL $40K starting
RL $55K starting.
There is still space for 4 sedans. while moving them up market.

03tLsNBP

iTrader: (9)

+1

spg900ny

Yeah, Buick.

We looked at a Regal. Drove a LaCrosse as a rental for a couple weeks when our Saab got hit.

If you haven't driven a Buick lately, you don't know Buick. They're making major changes over there, all for the better. Acura is paying attention, I'm sure.

I read some quotes I think on Autonews where Acura is giving up on trying to move as far upmarket as Mercedes/BMW/Audi. It's a good idea. I'm new to Acura, but I sat in all the Acuras in the showroom before we bought our TSX. They would need some serious investment in their interior materials and some more powertrain options to compete.

I think going the premium route (instead of luxury) with technology that appeals and MPG will be a hit.

icy2

I'm exciting about the changes coming to Acura. I hope they take some of the great things from successful previous models and incorporate those things into these models. It's been a long time since Acura has made a splash in the car scene with the next big thing!

NJSGTI

I assume the ILX will compete with BMW 1 Series, Audi A3, and Lexus CT200h. It would definetly have to be upgraded a lot from the Civic to compete with other highend brands.
Then maybe the TSX will either be dead or be upgraded to compete with BMW 3 Series, Lexus IS, and Infiniti G. Which would upgrade the TL to compete with BMW 5 Series, Lexus GS, and Infiniti M. Then like the article says the RL can move up to compete with Audi A8, BMW 7 Series, and Lexus LS. That would put Acura on the same path as other luxury brands like BMW and Lexus.

Colin

Actually, it would only need to undercut them in price with more features to compete in the marketplace. (the track is another matter). Remember that the CT is just a Prius which is related to a Yaris, so it seems as if the bar is not that high.

SSFTSX

Audi is lunching this A3 sedan at Geneva Motor Show. The back is like Lexus IS. with all the features and styling of larger Audi under $30k.
Add 1.8TFSI you have car good for 170bhp and 200 ft-lb of torque.
The car will be lower and wider not the narrower type feeling seeing BMW 1 series or current Civic. Offcourse there will be S3 Sedan.
Premium brand is designed differently than economy. Previously RSX/Integra were not much different in size than Civic.

SSFTSX

Prius is related to Yaris?. Prius has longer wheel base than Corrolla. It is mid point between Camry and Corrolla.

Colin

Sorry Prius = Avensis, but regardless, it's not as if it's some 'thoroughbred' chassis.

phile

I'm really excited about this thing. I don't mind a tarted up Civic - HIDs, a good stereo, gets out of its own way, decent interior, great price and I'm happy.

dom

I can't say I'm excited about the ILX but if done right it's something I'll definitely have a close look at when the wife's lease is up in 2013.

She always loved our 1st gen TSX and is still pissed about me getting rid of the AT for an MT that she hated driving. Hopefully this will be the 1st gen TSX reborn.

saturno_v

As much as we sometimes clashed in the past, I absolutely agree with you on this....I frankly don't know what is going on with Acura and from who they are getting market/segmentation advice.

Acura is aimless at the moment....there are things they could do even without investing that much...why not SH-AWD and a sportier version for the TSX?? As it is in FWD form only, the TSX is not a serious competitor to the 3 Series or A4.
No halo car...and I'm not talking a necessarily a NSX replacement but just something more modest, to fill the void of the S2000.
The RL left to die a slow pain....totally overlapped with the tL (size and engine)
The strongest offering is the TL which especially in its SH-AWD form is a terrific competitor up to the entry/mid level 5 Series or A6 but it is not adequately suppoerted in terms of trim offerings and marketing...the styling is unique (and as owners I abolutely love it)
RDX has some quirks...the ZDX it is a foolish attempt to follow another useless car (the BMW X6)...the MDX is another strong model (infact it sells quite good)

Why did you buy the TSX then?? with 2K more than a base TSX you could get a base A4, 3-4K extra coin get you a stripper 328i.
I don't know why peopel complaining about Acura fit and finish do not buy the other brands they think they are superior.....they do not cost that much more....

jwong77

What about performance, as I understand it, the lowest 1 series in the US market, the 128 is RWD has 230 hp I6 and will get upgraded to a turbo 4 engine soon that makes 245 hp in the z4. Thats giving up alot of performance. The ILX will need to be priced significantly lower. Like somebody said earlier, it feels like its positioned more against the Buik Verano than anything else.

Colin

No car will ever satisfy every buyer. Some may not place the same priority on performance as you do. But remember, although the 128 starts at 31K. If you get any color exterior but white, add leather, Xenons, and a convenience package or two, and you're quickly into the mid-30's. With navigation you're at almost 40k. This leaves a lot of headroom for a 200 hp, small sedan to undercut it in price if they can make it 'fully loaded' at ~30K. Time will tell.

supafamous

I'm disappointed that the base auto version will have only a 2L four that probably makes no more than 160-165hp - that's no way to compete against a 177hp Buick Verano or a 200hp Audi A3.

The 2.4L/6-speed manual should be a nice replacement for the 1G TSX though - with the right style it could be the same type of seller as the 1G TSX.

Colin

The Buick weighs 3300 pounds, the Civic EX weights around 2787. Sounds like a similar power to weight ratio (even allowing for a little weight gain).

As for the A3 the 2.4 should handle that pretty easily if they can keep it under 3000 pounds, since the A3 weighs 3219 (manual) or 3296 for the auto. I'm pretty sure it'll compete just fine so long as it's priced right.