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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.

2016 Acura RDX priced from $35,270*

Acura launched a revised version of its RDX crossover at the Chicago Auto Show in February. And now that it's about to hit dealers across the country, the Japanese luxury marque has released pricing for the updated model: $35,270, *not including $920 for destination. That new price represents modest and entirely reasonable $175 increase over the 2015 RDX. For that extra sum, buyers will get a slightly more powerful version of the 3.5-liter V6 (increased by 6 horsepower and a single pound-foot of torque) with cylinder deactivation, new engine mounts and a nine-speed automatic transmission instead of the previous six-speed, netting a slight improvement in fuel economy. The available all-wheel-drive system is now more rearward-biased, the styling has been subtly enhanced with new lighting and trim, and the interior trim and equipment have been updated as well. The 2016 RDX is set to reach dealerships nationwide this Thursday, April 16. Related Video: Ready for Liftoff: 2016 Acura RDX Launching with More Performance, Luxury Appointments and Advanced Safety Technology than Ever Before Apr 15, 2015 - TORRANCE, Calif. In a major commitment to advance what is already one of its most successful models, Acura is launching a more powerful, fuel efficient and luxuriously appointed 2016 RDX luxury SUV at dealerships nationwide tomorrow with a Manufacturer's Suggested Retail Price (MSRP) starting at $35,270 – an increase of just $175 over the 2015 model, despite the additional performance, features and capability. Coming off an all-time record sales year in 2014, the refreshed 5-passenger RDX now packs an even stronger punch in the compact luxury SUV class for 2016 with a more powerful 3.5-liter i-VTEC® V-6 engine, ride and handling refinements, an expanded list of available AcuraWatch™ safety and driver-assistive technologies, restyled exterior and interior elements and a host of new luxury features and technologies, including standard Jewel Eye™ LED projector headlamps and LED taillights. A new line-topping Advance grade ties the improvements and new features together in one comprehensive package. "The new RDX is another great example of how we are continuing to advance our Acura lineup with a focus on prestige, performance and dynamic proportion," said Michael Accavitti, senior vice president and general manager of Acura.

2014 Acura RLX

Earlier in the year, I reviewed a powder-blue Volkswagen Beetle Convertible, and I witnessed a group of high-school-aged girls ogling the car as it sat in my driveway. In my head, I found it to be a funny-yet-fitting scene that I didn't think of again until a 2014 Acura RLX showed up in my driveway. This time around, an elderly neighborhood couple stopped to give the big Acura sedan a closer look. The RLX is trying to shed past stereotypes of its predecessor, the Acura RL, just like the Beetle. Hoping to avoid becoming the de facto "grandpa car," Acura has completely reworked - and renamed - its flagship sedan.
As the bookend to the new entry-level ILX, the addition of the 2014 RLX might give Acura its strongest sedan lineup ever as the automaker looks to break the cycle of being a middle-of-the-road luxury brand. Stepping up to the big-boy table isn't going to be easy, though, as the competition keeps getting tougher. Forget cars like the Mercedes E-Class and BMW 5 Series, the Acura RLX is going to have its hands full with the likes of the Cadillac XTS, Lexus GS and Hyundai Genesis, not to mention a strong consortium of lower-priced, mid-luxury sedans like the Hyundai Azera, Toyota Avalon and Chevy Impala. The one thing all of these cars have in common is a reputation for being an old man cruiser.
I spent a week with the new RLX to see if it could shake the stigma of its outdated predecessor or if it would just leave me searching for the nearest early bird specials.