The 2013 Acura ILX will be a critical piece of the brand's turnaround strategy.
After years of struggle, Japan’s first luxury car brand is forecasting a 45% surge in demand this year that will help it challenge top-tier rivals.
Acura officials say they’re counting on new and updated models – notably the entry-luxury ILK sedan and redesigned RDX crossover — to provide the moment that will boost sales to 180,000 for the year. An all-new flagship scheduled to debut at the New York Auto Show next month should also add momentum.
“This is where we think we would have been” were it not for the impact of last year’s Japanese earthquake and tsunami, said Acura marketing chief Jeff Conrad.
Acura, which defied conventional wisdom when it demonstrated market acceptance of Japanese luxury products with its debut 30 years ago, has faced some serious struggles in recent years. The maker was faulted for abandoning long-cherished nameplates, like Legend, for alpha alternatives, such as the TL. And it took hits for quirky styling choices, notably the beak-like grille recent models adopted.
That grille has been refined – meaning downsized – for 2012 as Acura rolls out new and updates products, such as the ILX, which it is aiming at first-time luxury buyers in the Millennial generation. The ILX alone could generate 30,000 sales, according to Conrad, who notes the maker could increase capacity if it clicks with those young buyers.
The updated RDX, meanwhile, is targeting a broader range of consumers and could deliver a sales boost as the market shifts to more fuel-efficient products as gas prices continue to rise.
Acura officials aren’t saying much about what they’re referring to as the brand’s “new flagship,” except to confirm it will debut at the 2012 NY Auto Show in less than two weeks. It could be a critical addition for the brand, which doesn’t reach nearly as upmarket as key luxury competitors, notably Lexus with its LS model.
Product alone won’t propel Acura into the top tier of luxury brand, officials admit. The Honda division has been increasing its marketing efforts and went for the big win by advertising on the Super Bowl for the first time this year. Its two ads have continued to work for Acura, so far generating 14 million additional views on youtube.
Meanwhile, the maker is working with its U.S. dealer network to come up with a new “concierge” program that will deliver improved customer services. But Conrad cautioned that Acura does not plan to adopt an across-the-board menu of services, like some of its competitors. Some dealers might adopt the idea of letting customers shop at home, for example – a concept introduced by Hyundai for its new Equus premium luxury sedan – but it won’t be a requirement for all Acura retailers.
Nonetheless, Acura is betting 2012 could be a breakthrough year. The maker hit its recent peak in 2008, with U.S. volumes at 144,504. That plunged to just 105,723 a year later. Sales began to rebound in 2010 but then plunged the following year as a result of the natural disaster that curbed production by all of the Japanese makers.
Barring another major setback, Conrad is confident of hitting the 180,000 mark for 2012.