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Weekly Recap: Automakers rethink the definition of luxury

Variety is the spice of life, but it's becoming a prerequisite for luxury carmakers in the ultra-competitive US market. The Detroit Auto Show was strong evidence of this reality. It's not enough to offer attractive and well-appointed cars and SUVs anymore. Luxury brands that want to be competitive need to invest in everything from high-powered supercars to clever hybrids. To be relevant, you need to be green and mean – and everything in between. As General Motors product chief Mark Reuss said after the reveal of the 640-horsepower Cadillac CTS-V: "We are not leaving anything on the table." He was speaking for Cadillac, but he might as well have been speaking for the luxury car market. The CTS-V debuted in Detroit about an hour after Lexus surprised showgoers with the reveal of the RC F GT3 race car and then announced ambitious plans to return to competitive racing. That almost overshadowed the fact Lexus had just revealed another potent addition to its growing F line, the 467-hp GS F. View 20 Photos But for luxury brands, it's not just about maximum horsepower for well-heeled enthusiasts or decadent amenities for the Grey Poupon set. Strong competition from all corners has forced automakers to refine and expand their lineups in ways unforeseen even a few years ago. Case in point: Mercedes-Benz finally has an answer to the BMW X6, rolling out the GLE coupe in Detroit. The X6, which blends coupe-like styling cues with some of the functionality of an SUV, debuted in 2008. Back then it was a punchline, but seven years and more than 260,000 sales later, the X6's success has compelled Benz to respond. Mercedes – one of the strongest proponents of diesel technology – also debuted the C350 plug-in hybrid sedan, which promises a range of 20 miles on electricity, though fuel economy figures were not announced. The car pairs Mercedes' well-received 208-hp turbocharged four-cylinder with an electric motor for total output of 275 hp and 443 pound-feet of torque. Meanwhile, Infiniti will add the Q30 hatchback to its lineup by the end of the year, new president Roland Kruger reiterated in Detroit. It's expected to be joined by a crossover variant, and the additions will help strengthen Infiniti in the United States and abroad. "While we're expanding our product line, we're also expanding our market reach," he said. That's something echoed by Jaguar executives, who are preparing to launch the brand's first crossover, the F-Pace, in 2016.

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.

Next-gen Acura TLX spied out testing in heavy camouflage

We’re sure you all remember that stunning Acura Type S Concept from yesterday. Acura said itÂ’s meant to influence the next-gen TLXÂ’s design, and lo and behold, here is the next-gen TLX. Of course, Acura has no intentions of letting us see the production car anytime soon, so weÂ’re treated to a heavily cladded prototype in the photos here. Looking at it in profile, the camouflaged car looks a whole lot like the Type S Concept we saw yesterday. The short rear overhang is similar, but the front of the production car looks like it hangs out over the front wheels a little further – it still shares the concept's overall long-hood/short-deck proportions, though. The roof tapers down into the decklid at a shallow angle, similar to the concept car. WeÂ’re sad to see the same quad exhaust isnÂ’t protruding from the rear bumper of this tester. Instead, it gets a dual exhaust with wide, rectangular outlets on both sides. We think the car weÂ’re looking at here is likely a regular TLX, and not the spicy Type S variant most likely seen last year. ThereÂ’s one interior photo our shooter was able to snag, showing a similar infotainment screen as that used in the new RDX, something we fully expect for the production car. That touchpad system is far superior to Acura infotainment systems of the past, but it still isnÂ’t perfect. An analog tachometer is visible off to the left, indicating that the regular TLX trims probably won't introduce a fully digital instrument cluster. Not that we'd expect that; even the new RDX maintains analog gauges in its top spec. However the TLX story plays out, it wonÂ’t hurt if the production car looks just like the well-received Type S Concept. ItÂ’s unclear how long weÂ’ll have to wait to see the car in full, but we'll keep you posted.