2004 Acura Tsx W/navigation on 2040-cars

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.

The original Acura NSX: Development history and driving the icon

The original NSX, introduced in production form in 1990 by Honda and to the United States market under the Acura brand in 1991, is now officially 25 plus years old. Generations of car enthusiasts grew to love the original NSX over the 15 years it was in production and beyond, but as an fan and owner, I think it's important to fully realize just how monumental a shift the introduction of the NSX was in the art of making cars. So, retold 25 years later, this is the abridged story of the NSX, Honda's supercar. The Idea The NSX was an extremely risky project for Honda, a company that in the late 1980's was nowhere near the corporate juggernaut that it is today. Honda's eponymous founder, Soichiro Honda, was still involved in decision-making at the company during this time under the role of "Supreme Advisor," and it is debatable whether the NSX project in its infancy would have gone forward at all had he not still been pushing the company towards the spirit of technical achievement it had been known for in the prior decades. Mr. Honda was still so involved during this period, in fact, that when the first batch of 300 production NSXs were made with a version of the Acura badge he didn't like, he ordered all of the cars stopped at port in the USA, the new badges applied, and the offending incorrect badges sent back to Japan to be systematically destroyed. This was clearly a man who paid attention to the details, but I digress. Honda as a company devoted $140 million dollars to the NSX project ($250 million in today's money), half of which would go to developing the car, and the remainder of which would go to building a new state-of-the-art factory to assemble it. Honda's own goals for the NSX were actually exactly as most media stories portray the car today: to build a bona-fide exotic supercar, but one without the ergonomic and reliability penalties associated with that type of car. They didn't want to sacrifice the needs of the driver to the supposed demands of performance, demands that they felt didn't have to be there in making a truly top-level performance machine. The R&D team wanted a car that could hang with heavyweight exotics in a straight line, play with smaller and more lightweight sports cars in the curves, and cruise in serenity on the freeway. Essentially, they wanted it all, and the brief was to have a car that could do everything without compromise.