Honda CEO acknowledges Acura issues
#1
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Honda CEO acknowledges Acura issues
In an interview with Automotive News last week, Honda CEO Takeo Fukui acknowledged some issues with Acura (and was disappointed in particularly in the RL) in America. Some limited comments on Acura itself...
Honda has always prided itself on the performance of its engines. Now the Acura brand is supposed to distinguish itself by being more performance-oriented. How?
We need to emphasize the product differentiation between Acura and Honda. Our aim is to further enhance the Acura brand. We are trying to shift the image associated with the Acura brand to one that's more sporty, more luxurious compared to the conventional Honda image. So the Acura engines need to be sportier. One way would be what we did with the RDX. To differentiate it from the CR-V, we put in a turbo. Going forward, we're thinking of different ways to differentiate.
Will we see more Acuras with turbochargers?
As of now, we don't have that plan.
It's not going to be just turbos, but we'll be employing different approaches to enhance the sportiness of Acura. Of course there will be differences in timing of implementation. For example, we don't have any intention to keep turbos just dedicated to Acura. So in the future it's possible that they will be adopted in Honda products as well.
Will we see different suspensions on Acuras?
That's a possibility. We don't have any specific ideas right now. But suspensions might be one of the approaches we might take. Another would be powertrain or drivetrain systems.
Acura sales still seem to be struggling, even with the new RDX and MDX. Are you satisfied with the launches of those models?
I am satisfied with the RDX and MDX that we've launched. I don't really consider that the volume is struggling. That's something we can grow step by step. Still, we need to further enhance the premium-brand image of Acura, within our pursuit of a premium brand.
Last year we came up with the RL, with which we aimed to further enhance our image. But that was slightly under our expectations. It was not a big success.
In that case (referring to RL--my italics), it seemed that you offered only one version, and customers wanted more choice. Do you need to offer more choices and variations within each nameplate?
Our basic idea would be not to pursue that way. Rather, we want to pursue a more clear identity for different models.
Honda has always prided itself on the performance of its engines. Now the Acura brand is supposed to distinguish itself by being more performance-oriented. How?
We need to emphasize the product differentiation between Acura and Honda. Our aim is to further enhance the Acura brand. We are trying to shift the image associated with the Acura brand to one that's more sporty, more luxurious compared to the conventional Honda image. So the Acura engines need to be sportier. One way would be what we did with the RDX. To differentiate it from the CR-V, we put in a turbo. Going forward, we're thinking of different ways to differentiate.
Will we see more Acuras with turbochargers?
As of now, we don't have that plan.
It's not going to be just turbos, but we'll be employing different approaches to enhance the sportiness of Acura. Of course there will be differences in timing of implementation. For example, we don't have any intention to keep turbos just dedicated to Acura. So in the future it's possible that they will be adopted in Honda products as well.
Will we see different suspensions on Acuras?
That's a possibility. We don't have any specific ideas right now. But suspensions might be one of the approaches we might take. Another would be powertrain or drivetrain systems.
Acura sales still seem to be struggling, even with the new RDX and MDX. Are you satisfied with the launches of those models?
I am satisfied with the RDX and MDX that we've launched. I don't really consider that the volume is struggling. That's something we can grow step by step. Still, we need to further enhance the premium-brand image of Acura, within our pursuit of a premium brand.
Last year we came up with the RL, with which we aimed to further enhance our image. But that was slightly under our expectations. It was not a big success.
In that case (referring to RL--my italics), it seemed that you offered only one version, and customers wanted more choice. Do you need to offer more choices and variations within each nameplate?
Our basic idea would be not to pursue that way. Rather, we want to pursue a more clear identity for different models.
#2
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A production V8 after all these years would be nice. And yes, a V10 for Acura's NSX is being developed, but that still does not address the absence of a V8 in the lineup.
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Newsflash, they knew this 15 years ago and it is sad they STILL don't know what to do with the brand. Funny but I say these same things about the brand but I "hate" it, lol.
Bottom line, when Acura debuted 20 years ago, they had somewhat a vision of the brand. It was a small and limited one but AT LEAST a clear vision. Offering slightly more upscale cars for Honda owners to move up to.
The 1990s came and though the NSX and Legend were superb cars, most everything else they offered was not. No vision.
They simply watched as Lexus blew by them in the 1990s and now in the 21st century, they are in danger of being passed by Infiniti.
The problem is an odd one b/c Honda is about being different and doing things weird and really not about excess. In the luxury arena, that is not a good thing. They made thier offerings simple ones; cars loaded with either Nav or no Nav at a really bargain price and they do well.
It is clear Acura makes a really good sub-luxury brand, they sell well and have loyal owners. However with competition as fierce as ever in the true luxury arena (BMW/Benz/Lexus), I fear even a Honda V-8 won't mean much.
I see Acura as a Japanese Volvo or Saab, offering quirky and different vehicles, some do well, others do not.
http://www.autoweek.com/apps/pbcs.dl.../61218005/1528
Luxury=excess and Acura = the minimum
Until they figure that out, Acura will continue to fall farther and farther behind in the luxury arena.
Bottom line, when Acura debuted 20 years ago, they had somewhat a vision of the brand. It was a small and limited one but AT LEAST a clear vision. Offering slightly more upscale cars for Honda owners to move up to.
The 1990s came and though the NSX and Legend were superb cars, most everything else they offered was not. No vision.
They simply watched as Lexus blew by them in the 1990s and now in the 21st century, they are in danger of being passed by Infiniti.
The problem is an odd one b/c Honda is about being different and doing things weird and really not about excess. In the luxury arena, that is not a good thing. They made thier offerings simple ones; cars loaded with either Nav or no Nav at a really bargain price and they do well.
It is clear Acura makes a really good sub-luxury brand, they sell well and have loyal owners. However with competition as fierce as ever in the true luxury arena (BMW/Benz/Lexus), I fear even a Honda V-8 won't mean much.
I see Acura as a Japanese Volvo or Saab, offering quirky and different vehicles, some do well, others do not.
http://www.autoweek.com/apps/pbcs.dl.../61218005/1528
Luxury=excess and Acura = the minimum
Until they figure that out, Acura will continue to fall farther and farther behind in the luxury arena.
#6
I noticed the RDX is included in the 3.9% year end financing that Acura is offering (the MDX is not). I think the RDX is a great car but at $38K loaded, I think they are going to have a hard time moving them throughout 2007.
Compare/Contrast to the TL which at $36K loaded (non S-type) is the value leader in the segment.
Compare/Contrast to the TL which at $36K loaded (non S-type) is the value leader in the segment.
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I noticed the RDX is included in the 3.9% year end financing that Acura is offering (the MDX is not). I think the RDX is a great car but at $38K loaded, I think they are going to have a hard time moving them throughout 2007.
Compare/Contrast to the TL which at $36K loaded (non S-type) is the value leader in the segment.
Compare/Contrast to the TL which at $36K loaded (non S-type) is the value leader in the segment.
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#8
Lexus Fanatic
And, among the cars of that actual period, I'm surprised you didn't mention the 1994 and up Integras ( the last-generation models with the four small round headlights ). I agree they were far from "luxury" cars per se ( for one thing, they were too small to be luxury models ), but they were extremely well-built, had almost jewel-like assembly quality and fit-and-finish, and clearly were some of the best small cars on the market.....I seriously considered buying one myself before settling on the admittedly underpowered 1995 Toyota Celica ( with four similiar round headlights, I might add ). The Integra also went on to become an extremely popular aftermarket tuner car, and a high-performance GS-Type R model was produced as well.
The RSX, which replaced the Integra, I agree, was a dissapointment in several areas....most notable, it didn't have the Integra's hardware and fit-and-finish.
Last edited by mmarshall; 12-25-06 at 09:49 AM.
#9
Lexus Fanatic
As one poster pointed out, the next NSX will likely have a V10, so the issue of a larger engine in THAT car ( which probably COULD use a larger engine ) has already been addressed.
Last edited by mmarshall; 12-25-06 at 10:04 AM.
#10
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Down here, Acura has taken some flack for not importing the RSX and not offering a low-priced alternative like they used to have with the Honda Civic Vtec. Some of the managerial decisions are just absolutely nutty, and I can't figure out for the life of me what kind of market research they must be looking at.
#11
I've always seen Acura as affordable luxury. If I ever wanted a luxury-ish looking car with the minimum luxury features, Acura would be at the top of my list. In addition, I always thought Acura cars looked pretty good.
If you wanted the full fledge, you'd buy German or Lexus/Infiniti.
Are Acura owners "cheap"? Are they people who want to look rich without paying the price? Not necessarily. Sure there'll be people who buy them just to buy a "luxury" brand without the luxury price but honestly, there are a lot of people who want the luxury without buying something mainstream like a loaded Accord or Camry. There are people who want just the minimum luxury features like leather, moonroof and alloys. They don't need fancy keyless entry, ventilated seats, 12-way power seats and so forth.
So I think Acura fills the void between mainstream and the luxury manufacturers nicely.
If you wanted the full fledge, you'd buy German or Lexus/Infiniti.
Are Acura owners "cheap"? Are they people who want to look rich without paying the price? Not necessarily. Sure there'll be people who buy them just to buy a "luxury" brand without the luxury price but honestly, there are a lot of people who want the luxury without buying something mainstream like a loaded Accord or Camry. There are people who want just the minimum luxury features like leather, moonroof and alloys. They don't need fancy keyless entry, ventilated seats, 12-way power seats and so forth.
So I think Acura fills the void between mainstream and the luxury manufacturers nicely.
#12
Lexus Fanatic
Are Acura owners "cheap"? Are they people who want to look rich without paying the price? Not necessarily. Sure there'll be people who buy them just to buy a "luxury" brand without the luxury price but honestly, there are a lot of people who want the luxury without buying something mainstream like a loaded Accord or Camry. There are people who want just the minimum luxury features like leather, moonroof and alloys. They don't need fancy keyless entry, ventilated seats, 12-way power seats and so forth.
As far as the idea of getting into a so-called "luxury" or "premium" nameplate vehicle for a less-than-luxury price, that certainly is not confined to Acuras. The same can ( or could ) be said for the Infiniti G20 ( a converted Nissan Sentra ) , base models of the Audi A3, Lincoln Zephyr ( now MKS ), BMW 325i ( though 325's can run above 30K ), and Mercedes C230 Hatchback. It could also be said, to some extent, of the first Lexus IS300's in 2001 and 2002....mine was only 30K....and certainly of the IS200's that were not sold in the U.S. market ( which, IMO, was a mistake not selling them ).
Last edited by mmarshall; 12-25-06 at 11:39 PM.
#13
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The NSX was a superb car but almost nobody bought one brand-new......it was too expensive, and at the time very few repair shops were equipped to handle all-aluminum cars like the NSX. The Legend was indeed a nice car for its time, but, IMO, cannot cannot hold a candle to today's SH-AWD RL. ( Yes, I know some CL members disagree, but I still stand by my high opinion of this car ). A few manual-transmission Legends were produced for the American market but had a reputation for clutch problems...highly unusual for a Honda / Acura product.
I had the pleasure of owning 3 Acura Legends, one which was a 6-Speed manual. From all my history with the Acura Legend forums clutch problems on a Legend is very rare. I really don't understand where the clutch problem reputation came from. I as well as many of my contacts have owned both G1 and G2 manual transmission Legends and they are no different than your typical Honda. I think my sister changed the clutch on my 93 Legend I sold her past 125K miles.
On topic, Acura has a lot of catching up to do. Personally, I like some of what they offer because I still like performance over ultimate luxury, but they really need more performance from their engines. With their V6 engines for Acura, they should just add DOCH and leave the SOHC for the Honda line. Addition of a V8 is needed and long over due. The also need to offer some nice 2-door coupes again.
#14
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The problem is even if Acura offers a V10 in the next NSX, if they put it up front it wont sell that well. Too much competition in the front engine GT sports car segment. Even the LF-A will be a direct competitor. If they keep to the NSX history and make it a mid engine than they will have something special. There would be nothing or very little competition for a $100K mid engine V10 sports car. The Cayman would be its closets competitor.
#15
I think Acura needs to find its niche.
The TL is the value leader in the segment - but the RDX and RL are not priced correctly. I beileve the RL does not sell because people walk in to the showroom and say "what does the extra $14K over the price of the TL really get me? AWD? A smaller back seat?" When priced correctly at $42-44K, the car sells nicely and to me is a very good deal (just ask G35TX).
Same with the RDX - at $38K loaded it just doesn't make sense. As 1SICKLEX pointed out, take $4K off that and you have a decent car for a decent price.
I honestly wonder how the TL (non S-type) would sell at $40K... something tells me not so good.
The TL is the value leader in the segment - but the RDX and RL are not priced correctly. I beileve the RL does not sell because people walk in to the showroom and say "what does the extra $14K over the price of the TL really get me? AWD? A smaller back seat?" When priced correctly at $42-44K, the car sells nicely and to me is a very good deal (just ask G35TX).
Same with the RDX - at $38K loaded it just doesn't make sense. As 1SICKLEX pointed out, take $4K off that and you have a decent car for a decent price.
I honestly wonder how the TL (non S-type) would sell at $40K... something tells me not so good.