Auto blog

Honda exec says US market near capacity, could hurt subprime buyers

Is there a point in the US auto industry where companies should start considering the welfare of their customers ahead of selling more cars? American Honda Executive Vice President of Sales John Mendel thinks that level exists, and we may be getting very close to it.
According to Automotive News, Mendel believes that finding more customers in the market could require pursuing subprime buyers and offering longer-term loans. However, he refuses to use those tactics. While selling models this way can improve things briefly, the strategies hurt resale prices and lower vehicle profits over time. The company won't do "stupid things in the short-term that damage the person who bought yesterday," he said to Automotive News. "It's a very, very short-term tactic especially in the subprime area."
American Honda, which combines the Acura and Honda brands, has seen market share decline from 9.7 percent to 9.1 percent through July 2014, according to Automotive News, and Autoblog's By the Numbers stats showed it posted falling sales in five of the seven months with data this year. Though, Mendel claims that was partially because the company focused on retail sales over fleets. The delays of the launches for the Honda Fit and Acura TLX likely didn't help either.

Acura ILX headed for Civic-like early upgrades

The not-yet-ready-for-primetime 2012 Honda Civic saw it quickly returned to sender for refurbishment, now the Acura ILX is headed in the same direction in its very first year. Automotive News reports that the small, Civic-based sedan from Honda's luxury brand isn't meeting sales expectations, with an annualized rate of 22,000 to 24,000 sales instead of the 30,000 the company is after. More telling is that the ILX "is being outsold by the Buick Verano, Volkswagen CC and Audi A4," and, except for two months since it launched, it has also been outdone by the Acura TSX it is meant to replace.
Part of the cause has been the 2.0-liter, four-cylinder engine: its 150 horsepower to motivate a sedan that can weigh up to 2,970 pounds doesn't offer the kind of performance or value experience that buyers in the segment respond to. Another big issue is that the top-level 2.4-liter engine is only offered with a six-speed manual even though most buyers of the highest trim don't really want to shift their own gears. Lastly, the ILX might not put enough space between it and its frugal underpinnings - our first drive review pegged it as "the world's nicest Honda Civic."
An automatic transmission is on the way for the 2.4-liter, but it isn't clear when. And while Honda admits that the 2.0-liter is underpowered and Automotive News says it's on the way out, the company hasn't yet said how that situation will be corrected.

2023 Acura RDX gains convenience features, costs $750 more

The 2023 Acura RDX has made it to dealer lots boasting a couple of new add-ons and a higher MSRP. Honda's luxury arm rejigged the equipment list for the 2022 model year, addressing the omissions that many, including us, griped about. Beyond the styling tweaks, the RDX got a quieter cabin, reworked drive modes and a retuned active suspension, standard wireless Apple CarPlay and Android Auto, Amazon Alexa compatibility, and a USB-C charging port. Enhanced convenience and safety gear counted blind-spot warning, automatic emergency braking with pedestrian detection, and chassis reinforcements to improve crash performance. For 2023, Acura has made three years of AcuraLink and two years of the Acura Maintenance Package standard. AcuraLink includes the Security and Remote Packages. The former notifies a help center in case of a collision or emergency, and provides "enhanced roadside assistance." The latter gives owners smartphone control of the vehicle from a distance so they can start and stop the engine, lock and unlock the doors, find their vehicle whether it's simply been parked or if it's been stolen, and geofence a driving area. The maintenance package takes care of scheduled care for two years or 24,000 miles, whichever comes first. The 2023 version of the two-row crossover starts at $750 more than it did in 2022. This isn't bad considering AcuraLink runs $359 for a three-year commitment and a maintenance package would easily cost a few hundred more — or about the price of a bag of groceries lately. MSRPs for the 2023 RDX range after the $1,195 destination charge are: RDX: $42,545 RDX with Technology Package: $45,195 RDX A-Spec: $48,195 RDX with Advance Package (AWD only): $52,545 RDX A-Spec with Advance Package (AWD only): $54,545 Adding AWD to the three lower trims costs $2,200. Every RDX gets powered by a 2.0-liter turbocharged four-cylinder with 272 horsepower and 280 pound-feet of torque, shifted through a ten-speed automatic. Related video: