Honda aims for Brand Survival and China Revival with Luxury Acura Makeover


01/11/2016



In order to compete with BMW and Audi in the world's biggest car market, Japan's Honda Motor Co will launch a new small crossover sport utility vehicle this year in China. This would also be an effort by the company for a broader makeover and even the survival of its stalled luxury Acura brand, reported media quoting people who were aware about the subject.  
 
For Takahiro Hachigo, who took over as Honda CEO last year, reviving Acura is one of the biggest challenges. The car has of yet been unable to carve out a clear identity as a sporty, high-performance luxury label.
 
Acura has struggled, selling just over 4,000 cars last year compared with BMW's 460,000 and Audi's 554,000 ever since entering China a decade ago. According to industry consultant HIS, sales have failed to top the 201,000 cars it sold as far back as 2006 in the United States where the Acura had debuted three decades ago. The company managed to sell just around half of the numbers compared to what were sold by both BMW and Toyota Motor's Lexus luxury marquee.
 
The production mid this year of a China-only sub-compact crossover SUV at a jointly-run plant with Guangzhou Automobile Group would kick start the revival effort. A "crisp, more expressive" style - the result of four years of effort by Honda product planners and engineers would be at the heart of the new model.
 
"We don't have a strong brand with Acura in China. Our next move could be make or break," one of the sources said.
 
While demonstrating the company's commitment to the Chinese market, a Beijing-based Honda spokeswoman said the new Acura crossover SUV is being developed specially for China. Acura's China sales unit reckons it could eventually sell about 30,000 of the new crossover SUVs a year, sources with the company were quoted in the media.  

With the styling of the China-only car highlighting the signature feature of a broader Acura makeover, the new model's significance goes beyond China.
 
Hints of the new Acura styling should be on show in Detroit this week even as the under-wraps China model is unlikely to be unveiled before the Beijing autoshow in April.
 
Potentially lethal air bags made by supplier Takata Corp has resulted in a crisis for the leadership at Honda which is being battled. The company leadership is also aware of that a failed makeover could render Acura a "Mercury of Honda," one of the sources said. This was in reference to the entry-level luxury brand Ford Motor Co that was killed off in 2010 after years of dwindling sales.
 
There is little to differentiate between the upscale brand and mainstream Honda cars and this is a part of the Acura identity issue.

One of the sources were reported in the media as saying: "Styling cues in Honda and Acura cars have become more and more common.

Sources also said that a new, more sporty look would be possible in the new styling direction under Acura's global design chief Dave Marek.

(Source:www.reuters.com)