Honda CEO: smart premium for Acura, not the upper-segment like Lexus & Mercedes
#1
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Honda CEO: smart premium for Acura, not the upper-segment like Lexus & Mercedes
Another one straight out the horses mouth. They have invented a new term "smart luxury" since they dropped Tier 1 aspirations to be a real luxury brand as we were told awhile back.
It is also clear the CEO sees Lexus/Mercedes (and likely BMW) as the top brands to aspire too. Smart man.
Amazing they still seem to not know what Acura "should be".
I was right ten years ago and the CEO sent me an e-mail saying "you were right sick, you told us so".
http://www.egmcartech.com/2010/11/08...-not-top-tier/
It really truly feel sorry for those that made all those intense arguments in the past. All for nothing.
I have no issues with them continuing to be Honda plus. Again I think they should pull a Hyundai, drop the brand Acura and just sell them as nice Hondas ala Genesis, Equus since there is a market for them.
It is also clear the CEO sees Lexus/Mercedes (and likely BMW) as the top brands to aspire too. Smart man.
Amazing they still seem to not know what Acura "should be".
I was right ten years ago and the CEO sent me an e-mail saying "you were right sick, you told us so".
http://www.egmcartech.com/2010/11/08...-not-top-tier/
Acura has no V8 engine, no halo sports car and is no where close becoming a top tier luxury brand – and it looks like things are going to stay that way.
In an interview with Automotive News, Honda Motor CEO Takanobu Ito said that there are a lot of discussions going on inside the company about Acura and why way it should be going. He said that executives have so far decided that the brand’s “direction should be smart premium, not top tier.”
“Among the technologies we have at Honda, we must apply those that symbolize our advanced performance technology and environmental technology,” Ito said. “We call this ‘smart.’ We agreed that smart premium is what we should be targeting with Acura, not the upper-segment vehicles such as Lexus or Mercedes-Benz. We must apply advanced technologies which make our vehicle more fun to drive, achieve a more comfortable drive and high environmental performance.”
In an interview with Automotive News, Honda Motor CEO Takanobu Ito said that there are a lot of discussions going on inside the company about Acura and why way it should be going. He said that executives have so far decided that the brand’s “direction should be smart premium, not top tier.”
“Among the technologies we have at Honda, we must apply those that symbolize our advanced performance technology and environmental technology,” Ito said. “We call this ‘smart.’ We agreed that smart premium is what we should be targeting with Acura, not the upper-segment vehicles such as Lexus or Mercedes-Benz. We must apply advanced technologies which make our vehicle more fun to drive, achieve a more comfortable drive and high environmental performance.”
I have no issues with them continuing to be Honda plus. Again I think they should pull a Hyundai, drop the brand Acura and just sell them as nice Hondas ala Genesis, Equus since there is a market for them.
#3
Lexus Fanatic
Smart premium = more lame excuses, business as usual for Acura.
Interesting how he admits not targeting Lexus and Mercedes.
It's just another excuse for lack of premium car technology (and the list of what is lacking is still very long)
Interesting how he admits not targeting Lexus and Mercedes.
It's just another excuse for lack of premium car technology (and the list of what is lacking is still very long)
#5
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Seems to work just fine in Japan and other markets. Yes, America has this thing with needing a luxury badge to display their prestige and class, but maybe it's not entirely necessary. If Hyundai can be so bold, surely Honda could sell $50K models with their version of "H" slapped on it. The Genesis has done well, not great sales wise, but still successful. The Equus presents a far greater challenge. But with Honda's much better history, they wouldn't have too much of a problem selling premium cars at the same dealer. I would even say that what Acura sells in total now, would come close to being maintained. Especially since there are a lot more Honda dealers than Acura dealers. And, it would undoubtedly save Honda billions in the consolidation.
#6
Good point.
Seems to work just fine in Japan and other markets. Yes, America has this thing with needing a luxury badge to display their prestige and class, but maybe it's not entirely necessary. If Hyundai can be so bold, surely Honda could sell $50K models with their version of "H" slapped on it. The Genesis has done well, not great sales wise, but still successful. The Equus presents a far greater challenge. But with Honda's much better history, they wouldn't have too much of a problem selling premium cars at the same dealer. I would even say that what Acura sells in total now, would come close to being maintained. Especially since there are a lot more Honda dealers than Acura dealers. And, it would undoubtedly save Honda billions in the consolidation.
Seems to work just fine in Japan and other markets. Yes, America has this thing with needing a luxury badge to display their prestige and class, but maybe it's not entirely necessary. If Hyundai can be so bold, surely Honda could sell $50K models with their version of "H" slapped on it. The Genesis has done well, not great sales wise, but still successful. The Equus presents a far greater challenge. But with Honda's much better history, they wouldn't have too much of a problem selling premium cars at the same dealer. I would even say that what Acura sells in total now, would come close to being maintained. Especially since there are a lot more Honda dealers than Acura dealers. And, it would undoubtedly save Honda billions in the consolidation.
Not to mention the logistics of the dealer network. Do all those Acura dealers turn in their franchises and close or do they become Honda dealerships? That can't make them very happy.
#7
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That may be the most sensible option for them (Acura). The difference I see between Hyundai and Acura is that this will look like a retreat of sorts. In other words, the death of the brand. It gives the impression that Honda/Acura is shrinking while Hyundai is growing.
Not to mention the logistics of the dealer network. Do all those Acura dealers turn in their franchises and close or do they become Honda dealerships? That can't make them very happy.
Not to mention the logistics of the dealer network. Do all those Acura dealers turn in their franchises and close or do they become Honda dealerships? That can't make them very happy.
Honda's biggest mistake is not going all the way in the first place, in the fashion that Lexus did. History plays a big role in the ongoing success of a brand. Lexus, with the original LS, was great from their inception. Acura started in 1986 as nothing more than a Honda with available leather. The LS was a tremendous 7-8 year undertaking in an effort to build the best sedan ever. And along with this, the best possible dealer experience. Acura never developed that original foundation of prestige required for their future respect. So even if Acura now came out with V-8's and a top tier competitor, they still wouldn't be looked at as top tier. Just as the Equus won't garner the same respect as the S/7/LS it tries to compete with.
All Acura can ever be is what they have always been.
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#10
I would guess "smart" luxury means smaller cars, like TSX being the focus... I dont care how RL drives, but both inside and outside, Honda Legend I tried in Europe did not feel like GS level vehicle. However TSX (Accord here) is good looking car for field it is competing in.
#12
On a related subject, I heard a review of the new sporty Buick on WWJ radio in Detroit today. They said that GM is aiming Buick to compete with Asian luxury brands and Cadillac is aimed to compete with European luxury brands.
#13
Lexus Fanatic
Honda's biggest mistake is not going all the way in the first place, in the fashion that Lexus did. History plays a big role in the ongoing success of a brand. Lexus, with the original LS, was great from their inception. Acura started in 1986 as nothing more than a Honda with available leather. The LS was a tremendous 7-8 year undertaking in an effort to build the best sedan ever. And along with this, the best possible dealer experience. Acura never developed that original foundation of prestige required for their future respect. So even if Acura now came out with V-8's and a top tier competitor, they still wouldn't be looked at as top tier. Just as the Equus won't garner the same respect as the S/7/LS it tries to compete with.
All Acura can ever be is what they have always been.
All Acura can ever be is what they have always been.
Last edited by mmarshall; 11-09-10 at 06:10 PM.
#14
Lexus Fanatic
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Smart luxury doesn't make any sense to me on Acura's part... at all.
Let's get the record straight here, what makes Acura a smarter buy than Lexus for example?
Do they have a better resale value?
Are they more environmentally friendly? (Do they even have any hybrid models for that matter....?)
Do they have any more safety features than other cars in their price range?
Are they a smarter choice in the long term? (will they outlast a Lexus in 10+ years?)
I guess the point I am trying to get at here, is what makes Acura a smarter choice when shopping for a luxury car? It seems that there is no edge with the entire Acura brand...at all. Right now, it's just empty words that Acura is throwing out there in an effort to elaborate their pathetic existence.
Let's get the record straight here, what makes Acura a smarter buy than Lexus for example?
Do they have a better resale value?
Are they more environmentally friendly? (Do they even have any hybrid models for that matter....?)
Do they have any more safety features than other cars in their price range?
Are they a smarter choice in the long term? (will they outlast a Lexus in 10+ years?)
I guess the point I am trying to get at here, is what makes Acura a smarter choice when shopping for a luxury car? It seems that there is no edge with the entire Acura brand...at all. Right now, it's just empty words that Acura is throwing out there in an effort to elaborate their pathetic existence.
#15
Link to the story if anybody here cares. http://www.aronline.co.uk/index.htm?xxstoryf.htm