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Acura Changes Direction...No Longer Shooting for a Tier 1 Luxury Brand

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Acura has been trying to change its portfolio to become more of a Tier 1 luxury brand, but it looks like those plans have changed. Acura had been working on developing new high-performance vehicles and its first V8 engine, but those plans have been canceled.

There is "a certain level of confusion" about Acura in the marketplace, Honda Motor Co. CEO Takanobu Ito told Automotive News at the Tokyo auto show. "We are in the midst of big changes. We've changed the direction of research and development."

Prior to the collapse of the economy Acura had plans to finally match the other top tier luxury brands with its first V8 engine and rear-wheel-drive, but those plans have been scrapped sending engineers back to the drawing board.

Instead of focusing on going head to head with brands like BMW, Honda CEO Takanobu Ito stated, "I see the future of Acura as a merger of BMW and Audi--something between high technology and high performance." Eighteen months ago Acura dealers were promised five new models, but as a result of the changes Acura will be in a "low-growth period of developing new products."

"We were thinking that we could come up with glamorous, gorgeous products that would sell. Now, our premium products will be expressed in advanced environmental technologies, rather than glamorous things attached to the product," Ito said.

It has been rumored that Acura is going to return to the entry-luxury market with a vehicle to compete against the BMW 1 Series.

"They talked a lot about smart, efficient and sensible luxury vehicles, not big, in-your-face luxury cars that don't make sense," said Jim Brown, general manager of Ron Tonkin Acura in Portland, Ore. "They said there will be a new product introduced every year. ... But there also is a delay in the pipeline."

This winter Acura will release the ZDX crossover and by the fall of 2010 the TSX Sport Wagon will also launch.

Full Story: AutoWeek

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Acura has Announced the Euro Accord Wagon will come to the US as the 2011 TSX Sport Wagon

Comments (19)

gilly:

a mess...

Chad:

I remember when the 2004 TL came out and I saw them everywhere. A fantastic blend of interior quality, sporty design and comfort, good performance and excellent gas mileage if you were easy on the pedal.

Fast-forward to today and I see maybe one of the new TL's a week, sometimes not that much. It is a shame.

I really loved the comment:

"We were thinking that we could come up with glamorous, gorgeous products that would sell."

I guess they were wrong, and it looks like they finally realized it. Best of luck to them.

Jeremy:

Wow, this makes it sound like Acura is a total failure, those quotes are pretty priceless, I am glad I do not own one.

"We were thinking that we could come up with glamorous, gorgeous products that would sell. Now, our premium products will be expressed in advanced environmental technologies, rather than glamorous things attached to the product," Ito said.

So they are not going to be fast or powerful, but environmentally advanced, like Kia's, they get really good gas milage.

Dirty McNasty:

I respect Honda for finally facing reality, when you got money to spend on a decent luxury vehicle Acura never even comes to mind.

dan:

...so does this mean they'll put the RSX back into production?

Kawi:

"We were thinking that we could come up with glamorous, gorgeous products that would sell. Now, our premium products will be expressed in advanced environmental technologies, rather than glamorous things attached to the product," Ito said.

Hmm, this is corporate-speak for "Our lineup and immediate pipeline are a bunch of butt-ugly cars".

A shame, because the Legend and prior RLs (not the last two incarnations) were quite elegant. Also, the prior TL was almost a Japanese 5-Series. And do I even have to mention the jaw-dropping NSX?

Now, well, like a poster said, it's a once-a-week TL sighting, and too much at that, I'd say.

Funny how the news ends with "This winter Acura will release the ZDX crossover and by the fall of 2010 the TSX Sport Wagon will also launch." Precisely the type of crap that got them into identity-crisis mode in the first place.

kw:

Actually, it sounds like mid 70's Detroit. They've gotten large enough that left hand isn't necessarily connected with what the right hand is doing, with the result that both go their own direction and everything becomes a muddled up mess.

In other words: Oh oh.

Mazda6 Guy:

The problem with Acura is that regardless of how they dress them, they are still Hondas. Here in Canada they sell the CSX which is nothing more than a Civic with leather, oh, and the detuned 2L engine in it. No RWD, no V8, and pretty much nothing that stands out.

Killing the RSX in favour of the RDX was dumb as they basically eliminated one of the most sought-after demographics. And no, a Civic Si is not the same thing...

Noya:

""We were thinking that we could come up with glamorous, gorgeous products that would sell. Now, our premium products will be expressed in advanced environmental technologies, rather than glamorous things attached to the product," Ito said.""


So instead of competing with the big boys, they're going for the "green" BS image (do buyers still get tax incentives to buy hybrids?). Looks like college educated hippies now have a new halo brand.

RSX owner:

I agree with the RSX comments. It was a huge mistake not to keep that car in the line up. It could have gone a little more upscale and owned that $25-$28k market. I have an 03 Type S, 0-60 in 6.3-5 sec, ave 27 mpg with a back seat that can fit an ave. size woman, and can carry a full load from costco with the hatchback. It has been fun and bullet proof from day one. I only wish I could get a new version when I'm ready for a new ride. Now I'm looking at the Mazda Speed 3, WRX, or the vovlvo c30. I'd consider a new acura sedan if they weren't so ugly.

Andrew:

I used to be a die hard Acura fan, buying one model after another, but then Acura decided to change...

The main problem with Honda in general is they want you to purchase up on the next model if you want HID or Bluetooth...

Personally, if I want a small TSX then let me get everything the top of the line model has, I don't want to drive the RL...

Honda's whole stance is one car will kill the sales of the other... In the end isn't it a sale?

I think if Mercedes can have all the bells and whistles in their C series as they have in their E class then why is Honda preventing themselves from doing the same thing.

Honda's next mistake was changing the body style with that god-aweful grill.. They need to go back to the drawing board and make cars that people like me want. The same cars that had me so many years ago...

Peter:

So they want to compete with hybrid Buicks or Lincolns instead of BMW. I guess the hippies can order a Type G (Green) car instead of Type S.

lotsofTRidiots:

@ everyone:

I concur. The gist I got from this was, in layman term: "Well, we wanted Acura to diverge dramatically from Honda, but in the end, we decided to rebadge Honda. That eco-Acura that you wanted? Well, we figured we'd do what Toyota did and rebadge the Insight." Sad, really...It's hard to believe these people were the brains behind the DC2.

WareWolF:

For some reason that car in the picture reminds me of something from AMC ! (puke)

an_individual:

Small, efficient, sporty and built so well you were willing to pay a little more. A perfect formula that Acura had for years. Then they went big dumb and American lard-ass cruiser. There are only so many idiots willing to pay for (or able to anymore) cheesy bling mobiles.

You have to give credit to Ito for speaking the truth. It's this kind of honest assessment that has made Honda a winner from the start. Remember, this is a company led by engineers, they play best when facing the facts, not spinning the marketing B.S. that other companies do.

As long as they slim down the metal, give up on the stupid sci-fi interiors and concentrate on their great engines, I'll be glad to buy them.

pablo:

Well said, an_individual. Instead of telling Acura is worthless and bla bla bla... We can see how the people who is now in charge of the brand, can face the problem and change their entire goal and...

"not spinning the marketing B.S. that other companies do."

Brian:

You know I think I covered this already in another thread. Perhaps Honda actually reads TR?!

I guess time will tell.

thetruth:

Wow, not too often does this forum have total agreement, including between TRidiots and Noya....but Acura's blandness has united everyone, maybe they get an award for that.

Well, I'll break away from the pack, I actually like the RL, but only as an off-lease/used car. Offers some pretty good bang for the buck once the market has corrected it's price. Makes a great commuter car for those in the north east. I stilll don't know how anyone chooses to buy one new.

VJ in Okinawa:

And another for the bland Acura offerings. I used to own one. Now I own a Subaru because it gave me what I wanted: AWD, a smaller sedan, just enough tech, a reasonable price, and great reliability.

If Acura could do SH-AWD in all cars, and then tier the market with rightly placed, nice looking vehicles, I would go back.

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