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Acura dealers: V8, RWD dropped for "low-growth period"

This is a discussion on Acura dealers: V8, RWD dropped for "low-growth period" within the Acura forums, part of the Japanese Cars category; In the luxury segment, Acura has always been a bit of a lost puppy : Tempting to bring home and ...

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Old 11-02-2009, 04:30 PM   #1
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Acura dealers: V8, RWD dropped for "low-growth period"



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In the luxury segment, Acura has always been a bit of a lost puppy: Tempting to bring home and full of rewards to the owner who does, but never quite sure of where it is or where it's supposed to be. Over the past few years, Acura dealerships across North America – at the behest of Acura itself – have spent big bucks constructing glitzy new showrooms in anticipation of new products coming down the pipeline that would be capable of competing with other big luxury marques. But those heavily-invested franchises may find themselves holding their hats as the premium Honda division is changing its course again, and in the interim will be delaying significant model launches.

Part of the shift in strategy for Acura – which still markets exclusively in North America and China – is to put the final nail in the coffin for a rear-drive platform and V8 engines, two components seen as vital for going toe-to-toe with the European brands. Instead, Acura will reportedly focus on a more sensible approach to luxury vehicles during a "low-growth period" of new models, returning to the entry-level luxury segment to combat the likes of the BMW 1 Series and Audi A3, along with luxury hybrids. But it'll take the Japanese automaker a good few years to remake itself, and in the meantime sales are likely to continue declining as the TSX sport wagon (nee Honda Accord Tourer) and the new ZDX crossover (low-volume models both) hold down the fort as the only new arrivals in the pipeline.
- Sorry, Acura dealers: V8, RWD dropped for "low-growth period" — Autoblog
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Old 11-02-2009, 05:29 PM   #2
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Just a sorry, really sorry brand. Ugly, made over Hondas. Delaying product launches? They don't have anything to "launch" it seems.

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Old 11-02-2009, 05:30 PM   #3
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Acura needs to move more upmarket...it's useless thinking that Acura can be a relevant luxury brand without a V8 or a RWD car.
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Old 11-02-2009, 05:37 PM   #4
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I don't know about Acura. I like the TL, but they just don't have anything that people would leave the Germans for..

They really need to come out with more aggressive and interesting design that people (at least a wide range) will actually like. The need a strong entry level car as well as a good E/5/A6 competitor as well as a V8 POWERED flagship sedan. Then a smooth luxury coupe as well as a NSX that could rival the GT-R in performance, if not better.

Honda as a whole keeps leaning towards this "greener" side and forgetting that Acura is a luxury company that needs to be competitive to survive.
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Old 11-02-2009, 06:33 PM   #5
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Without a clearly define strategic direction, Acura really is swimming against the current here, and if their new strategy doesn't work, then they may well be in serious trouble.

Acura used to be a sports-luxury company much like Infiniti has now impressively become. They definitely can't compete head-to-head with Mercedes and Lexus in becoming an all-luxury focused brand, so IMO, their best bet is to get back to their sporty image of yester-years....BUT, Honda wants to move on with the green-dream, so I guess a long-term positioning strategy for Acura could well be what BMW is gunning for, enviro-friendly sports-luxury.
If anything, making these hardline decisions now (as BMW is doing with their red-light policy for exotic models) may pay dividends in long-run because they'll be right there with BMW in offering a whole range of enviro-friendly hybrids and electric vehicles and what-nots, while their main sports-luxury rival Infiniti is still playing catch-up.

In some ways it's a good thing that Acura is stalling because there's just not that much promise of launching new and important models in the current climate. It's a tough and very risky decision, but I think they know it's gonna take some time to get their brand identity back on track, so they're willing to be in the wilderness in the short-run, but come out guns blazin' down the track when the eco-movement really becomes important (if it becomes that important).

Just look at how Honda has/has not/has/has not cancelled the much anticipated NSX. The move to green has forced them to currently go lean. I guess they're Jenny Craig-ing at the moment.
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Old 11-02-2009, 06:42 PM   #6
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I'm cross-posting from the other Acura thread since this seems like a better place to rant...

Ahem...

I sometimes get angry thinking about what a listless bundt cake Honda has made out of its once healthy and desirable Acura brand.

Ok, Acura looks towards a future defined by efficient products and innovative, eco-conscious technologies - Let's just take this at face value and not take the cancellation of their RWD and V8 projects as a bearish reaction to the post-Lehman Brothers economy. If this is where Honda truly believes their Acura brand will differentiate itself and realize a competitive advantage I have to stop and wonder how they've come to presume that this is their strong suit.

For starters, Toyota has been hard at work greenwashing Lexus for the past 3 years, and they've done a very good job grabbing mindshare in that niche; the introduction of the HS 250h being a massive step in the direction of developing sincerely green luxury cars.

BMW is staking out the other side of the turf, and I believe their "Efficient Dynamics" campaign will make more and more sense as time wears on.

So where does this put Acura? A fleet of 4 and 6-cylinder cars an ecologically conscious brand does not make. And to that point - How do Acura's priorities differ from Honda's? Technology and efficiency are core traits of Honda's persona. Advanced Technology, however, is not Acura's wheelhouse - nor is that the overall perception from the man on the street. In the US, that bag is shared between MB, Lexus and possibly BMW.

And oh boy - That ZDX. I hope I'm wrong - But there's a big problem coming down almost every luxury automaker's sales channel in the form of crossovers that were born and raised for an entirely different, much more exuberant market, than the one we know today.

I like the sound of a TSX wagon - That sounds like territory Acura could steak out and make their own, if they package it right.

I can buy that Acura can build a future towards being a new kind of "Tier 2" luxury brand, with a different MO than the typical bigger, louder, more model that has been the norm for the past 20-odd years. What I don't buy is that "technologies" will separate Acura from the pack.
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Old 11-02-2009, 08:17 PM   #7
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I understand that Honda wants to establish Acura as a "green luxury" brand, but you can still have V8 engines and rear wheel drive no matter what your environmental strategy is. For instance: look at BMW and MB; both are pushing Efficient Dynamics and BlueEfficiency. However, they also realize that they are luxury brands and need to fulfill their roles as these brands, not just as environmentally conscious brands.

For some reason, Acura seems to think that being environmentally friendly means that every model needs to be a showcase for efficiency. Acura needs to look more at the "big picture" of themselves and their potential instead of wanting to look environmentally friendly with each model.

It's really a shame, too. Acura IMO makes solid looking cars (just my opinion ) with incredible interiors. But so do Lexus and Infiniti, which leaves Acura in the position that they're in right now; forcing themselves to become a tier 2 luxury brand, when they have the potential to play with the big brands.
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Old 11-02-2009, 08:24 PM   #8
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It's not for a lack of chops that they are a Tier 2 brand - It's because they've stubbornly refused to treat Acura as a different company with a point of view independent of Honda and, in the post-Integra period, have brought the wrong products to market.

If the Acura RSX was developed as medium-sized, RWD premium sports coupe with available V6 instead of a cute, sporty Civic-plus Acura would already find themselves in a different spot. They were poised to move upmarket but didn't seize the opportunity.

It's goes to show that if you build it, they won't come. They've decided to carve out their own niche by ignoring the desires of Acura intenders, and now they're suffering the results.
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Old 11-02-2009, 08:29 PM   #9
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The bottom line is that "Acura" is still "Honda" and Honda thinks small and that simply won't result in a true luxury brand like Mercedes-BMW or Lexus. You have to have something for everyone and a broad choices. All sedans and suvs won't cut it, nor will all hybrids, V6s and FWD/AWD. You've got to offer something...a coupe, convertible, or something with some real power.

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Old 11-02-2009, 08:35 PM   #10
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And something with real luxury. If you lack a proper coupe, convertable, roadster and full-sized V8-powered sedan how are you supposed to build anything resembling brand cache? Maybe on planet vulcan this shit flys, but even the most sensible people require some measure of an aspirational halo to make them feel good about the what's in their driveway.
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