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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.

2022 Acura MDX Type S priced far above the base model

Acura has published pricing information for the 2022 MDX Type S, the first SUV that the firm has deemed worthy of wearing this esteemed badge. It's priced well above the entry-level MDX but it gains a long list of performance, comfort, and technology upgrades to make up for it. Pricing for the Type S starts at $67,745 including a mandatory $1,045 destination charge. In comparison, the base MDX starts at $48,245 including the same destination charge. While that's a significant difference, the range-topping Type S benefits from 3.0-liter V6 engine that's turbocharged to 355 horsepower, a rear-biased all-wheel-drive system, Acura's first air suspension system, and Brembo-sourced four-piston front brake calipers. Visual changes (including a grille that sends about 10% more air to the engine bay) further set the Type S apart. The list of standard features also includes 21-inch wheels with self-sealing tires, LED exterior lighting, aluminum interior trim, leather upholstery, heated and ventilated front seats, a wireless device charger, a 16-speaker sound system and 12.3-inch display for the infotainment system; Acura packs a lot of features into the Type S. Buyers who want even more can step up to the Type S with the Advance Package, which starts at $73,095 including destination. It will be the most expensive member of the line-up once the NSX exits the stage. Ordering the Advance Package adds a 25-speaker sound system with 1,000 watts and illuminated door speakers, 16-way power-adjustable front seats (the standard Type S gets 12-way units), a nine-way massage function for the front passengers, heated rear seats, wood interior trim with black metallic accents, a heated steering wheel, a surround-view camera, a power-operated tailgate, gloss black exterior trim and roof rails, plus acoustic laminated glass in the rear doors. As a bonus, Acura adds floor mats that it describes as "ultra-plush." Acura dealers across the nation will begin receiving the 2022 MDX Type S during the second half of December 2021. Related Video:

Acura RLX will die after 2020 model year

Only Acura knows why its flagship RLX sedan is still on sale; every year that we had occasion to remember the RLX — which wasn't every year — seemed like a good year to let the car die peacefully. Automotive News reports the deed is finally done, or rather, will be at the end of 2020, when Acura discontinues the model that started with the RL in 1996. Honda told U.S. dealers yesterday that in other markets like Japan, the four-door will continue to sell as the Honda Legend. Honda's comment to AN included, "With SUVs leading the luxury market, the highly successful RDX and MDX now serve as volume leaders of the Acura brand," and, "We will further strengthen our sports sedans, consistent with the performance-focused direction we have been taking Acura over the past four years." Speaking of the devil, the RL and RLX — and Acura as a brand — never got out from under the weight of the Legend sedan, that ancestor being the second of Acura's three albatrosses after the original NSX and the Integra. The RL never equaled the Legend's worst year of U.S. sales. The RLX, a combination of arousing performance under anodyne styling costing premium German money, might have performed the same feat viz the RL, but the RL sold less than 5,000 units here for the last five years of its life. The RLX has only exceeded 5,000 sales once, in 2013. Last year, 1,019 units found buyers.  Acura's focus now is the NSX halo and the continuing overhaul of the volume lineup. The new RDX is going great guns, the new MDX crossover is due this year. The slightly larger and Type S concept-inspired TLX sedan is expected to be another gift to 2020, followed by the return of a bona fide Type S next year, after which the ILX compact sedan gets its turn. Last year was the first time in five years the TLX dipped below 30,000 sales in the U.S., impressively steady going for a segment with shocking attrition. Although the demise of the RLX gives up on the aspiration for a big luxury flagship, the coming TLX should help us forget what the RLX represented. If we hadn't already.