Acura shifts its focus to sensible Gen Y shoppers

With the ILX, brand aims to boost '12 U.S. sales 46%

Acura will return to the entry-luxury segment when the ILX small sedan reaches showrooms in May.

by Mark Rechtin

In addition to the new ILX small sedan and redesigned RDX compact crossover coming in spring, a tease of the redesigned RL flagship due this fall will be shown at the New York auto show in April.
Then, the volume leading TL sedan and MDX mid-sized crossover are slated for 2013 redesigns. The much-hyped NSX supercar should arrive by the end of 2014.
Six years ago, Honda Motor Co. executives decided to move Acura upscale and shelve the brand's entry-level luxury offer -- the compact RSX hatchback, which was the successor to the Integra. The timing couldn't have been worse.
In less than three years, many of Acura's competitors announced plans to offer products that fit the RSX and Integra's niches. Then the global economy collapsed and many luxury-vehicle buyers pared back their purchases.
In May, Acura will return to the entry-luxury segment with the ILX. The sedan won't remind anyone of the sportiness of the RSX or Integra, but Acura hopes it will appeal to sensible Gen Y customers.
The collapse of Lehman Brothers "changed the philosophy for luxury purchases. People are making more rational purchase decisions, taking pride in the deal they strike," said Jeff Conrad, Acura Division general manager. "Generation Y aspires to luxury, but they need a little help getting there."
The new lineup will feature four sedans, the TSX, TL, RL and ILX. There is some overlap, but Conrad said Acura has no plans to eliminate any of the four.
"We're remaking the entire lineup over the next few years," Conrad said. "Nothing goes away, and we're sticking with that. We've had a pretty strong reliance on sport-utilities and we want to bolster our sedans."
With 40,000 units of additional volume from the estimated $27,000 ILX, Acura expects its overall U.S. sales to jump 46 percent to 180,000 units this year -- up from 123,299 in 2011. If not for the Japanese earthquake and Thai flooding last year, Acura estimates its 2011 U.S. sales would have been about 150,000. So the volume jump is not as large as it would seem, Conrad said.
In the longer term, it's unclear whether Acura aims to fight head-to-head against Lexus, BMW and Mercedes-Benz.
"We want to take one year at a time," Conrad said. "We're not going to go set volume targets for future years. Everyone wants to continue to grow, but for the foreseeable future this is a pretty good level to be at."
Acura doesn't want to increase its dealer count, Conrad said. But the brand needs to improve owner loyalty.
At 45 percent, Acura customer loyalty is slightly below the industry average of 49 percent, according to the J.D. Power and Associates 2012 Customer Retention Study.
According to the study, Acura doesn't really compete in the luxury segment. It mainly attracts customers from -- and loses them to -- Honda and Toyota.
"I know we're not satisfied with our loyalty numbers," Conrad said. He said retention efforts will include data mining to better understand when and how to contact existing customers.
Acura also will be more aggressive with presale marketing before redesigned products reach market. Already, 3,500 potential 2013 RDX buyers are in Acura's dealer system, waiting for the on-sale date to arrive.
On the plus side, Conrad said Acura's average customer age is two to four years younger than those of other premium brands.
Although Acura's core customers continue to be baby boomers, the brand is seeking to connect with younger buyers. In researching Gen Y -- consumers aged 19 to 31 -- Acura has discovered that "value for money" is the primary concern, replacing the baby boomers' focus on quality, reliability and fun-to-drive vehicles.
So what do the Gen Y customers covet? Connected cars, with features such as Bluetooth, Pandora and SMS text messaging. Cool engineering solutions for better performance aren't nearly so high on the wish list.
"The real key is not that we offer it, but that we offer it and put it on a vehicle and make it intuitive to use," Conrad said.
Acura will continue its appeal to Gen Y through its product placement arrangement with comic-book-movie franchise Marvel Enterprises. Already seen in Thor, Acura products will be highlighted in this summer's mutant-superhero flick The Avengers.
That should play into the cool factor that appeals to young buyers. When asked what makes a vehicle cool, Gen Y respondents said exterior styling, affordability and environmental consciousness.
"It's no secret the last few years have been pretty tough on Acura," Conrad said. "'Smart luxury' has become our internal mantra."
Source;

http://www.autonews.com/apps/pbcs.dll/article?AID=/20120326/RETAIL03/303269988/1144/acura-shifts-its-focus-to-sensible-gen-y-shoppers

2013 Acura ILX - 2012 Chicago Auto Show Video

Acura Debuts 2013 RDX and All-New ILX Sedan at Chicago Auto Show

Sporty styling, new technology and efficient powertrains are highlights
02/08/2012 - CHICAGO
Following up on its blockbuster appearance at this year's Detroit auto show, Acura today unveiled production versions of two new vehicles at the Chicago Auto Show. A completely redesigned 2013 Acura RDX crossover sport utility vehicle and the all-new 2013 Acura ILX luxury compact sedan were shown. Both new Acura models are scheduled for launch in the Spring.

"We are excited to be launching these two new luxury models as the gateway of Acura's revitalized product lineup," said Jeff Conrad, vice president and general manager of Acura. "As we embark on our second 25 years as a premium luxury-performance automobile brand, we are excited about the role these two vehicles will play in welcoming a new generation of luxury car buyers to the Acura brand."

2013 Acura ILX
The 2013 Acura ILX compact sedan is an all-new model that is positioned as the gateway into the Acura brand. The primary target customers for the new ILX are Generation Y-- successful 20 and 30-somethings moving into the luxury car ranks but looking for high-value propositions in their purchases.

"First-time luxury buyers tend to place a high value on exterior styling, affordability and environmental issues, and that's what we have created with the new Acura ILX," said Jon Ikeda, head of the Acura Design Studio. "The strategy behind this new model is to position ILX as the first opportunity for many young buyers to enter the luxury market."

Sleek and sporty, the ILX combines luxury, performance and efficiency. While maintaining a strong emphasis on stylish and aerodynamically efficient exterior design, the ILX features a large and airy greenhouse that provides excellent outward visibility. As a five-passenger luxury sedan, the ILX combines compact proportions with a spacious passenger interior and ample cargo space-- perfect attributes for young professionals on the go.

The ILX will feature three advanced, sporty and efficient powertrain choices, including Acura's first-ever gas-electric hybrid. The entry-level ILX will be powered by a 2.0-liter inline 4-cylinder engine producing 150 horsepower at 6,500 rpm and 140 lb-ft of torque at 4,300 rpm. Paired with a Sequential SportShift 5-speed automatic transmission, the ILX 2.0L has an EPA estimated* city/highway fuel economy of 24/32 mpg.

For those who seek a more dynamic driving experience, the ILX can be equipped with a 2.4-liter engine with an output of 201 horsepower at 7,000 rpm and 170 lb-ft torque at 4,300 rpm. Mated to a close-ratio, six-speed manual transmission, the ILX 2.4L has an EPA estimated* city/highway fuel economy of 20/29 mpg.

Marking the debut of Acura's first ever hybrid model, the ILX Hybrid makes use of a 1.5-liter inline engine and an Integrated Motor Assist® electric motor. Paired with a Continuously Variable Transmission (CVT), the ILX 1.5L Hybrid has an EPA estimated* city/highway fuel economy rating of 35/38 mpg.

The hybrid drivetrain uses the gasoline engine as the primary power source, while an electric motor provides additional power when needed. A lithium-ion battery pack is used to capture and store electricity for the 20 horsepower electric motor. Together, the gasoline engine and electric motor produce 111 horsepower at 5,500 rpm and 127 lb-ft of torque between 1,000-3,000 rpm. During braking, the gasoline engine deactivates and the electric motor acts as a generator to recharge the battery pack. At a stop, the 1.5-liter engine can enter idle-stop mode to save fuel and reduce emissions. The engine remains off until the brake pedal is released.

The ILX chassis utilizes advanced MacPherson strut front and multi-link rear suspension systems, along with new Amplitude Reactive Dampers. The dampers operate in two distinct performance parameters to simultaneously provide superior ride comfort and precision handling. In addition, Motion Adaptive Electric Power Steering is used for excellent steering feel and improved fuel efficiency. The result is a chassis with a high level of refinement, confident handling and a nimble and sporty driving experience.

The ILX will feature a high-quality, well-appointed interior that is smart, spacious and sporty. It will offer a number of new, high-value features including a standard Keyless Access System with smart entry and pushbutton start, along with Pandora® internet radio interface and SMS text message function for smart connectivity with the world.

As with all Acura models, the ILX will have a long list of standard features, multiple trim levels (a Premium Package and Technology Package), and excellent standard safety features-- including Acura's acclaimed Advanced Compatibility Engineering™ (ACE™) body structure, front, side and side-curtain airbags, 4-channel anti-lock brakes and Vehicle Stability Assist™ (VSA®). Although yet to be tested, Acura anticipates that the ILX will achieve top crash safety ratings from both the NHTSA and IIHS.

The available Premium Package features leather seating surfaces, heated front seats, an upgraded 360 watt stereo system, a rear view camera and an Active Sound Cancellation system to make for a quieter cabin.

Building on the Premium Package, the available Technology Package adds Acura's award winning ELS Surround® audio system and a full complement of relevant technologies, including AcuraLink® Satellite Communication System, Acura Navigation System with Voice Recognition™, AcuraLink Real-Time Traffic with Traffic Rerouting™, and AcuraLink Real-Time Weather™ with radar image maps. The navigation system makes use of a hard disk drive (HDD) with 60 gigabytes of storage capacity-- including 15 gigabytes that can be specifically allocated for music storage. With the available Premium or Technology Package, a new multi-view rear camera is used.

The Acura ILX will be manufactured (using U.S. and globally sourced parts), exclusively at the company's state-of-the-art Greensburg, Indiana plant, one of only three plants worldwide to receive J.D. Power and Associates' 2011 Platinum Award for outstanding product quality, and the top award for any factory in North America.

2013 Acura RDX
The 2013 Acura RDX, the second generation of Acura's five-passenger crossover SUV, will up the ante with a new approach to achieving both advanced performance and fuel efficiency via a new engine, transmission and all-wheel-drive system.

The 2013 RDX rides on a 4-wheel independent suspension with a MacPherson strut front and multi-link rear suspension design. A longer wheelbase, wider track and lower center of gravity provide the foundation for the new RDX's improved handling and ride quality. New chassis technology for 2013 includes Acura-exclusive Amplitude Reactive Dampers and a new Motion Adaptive Electric Power Steering system that replaces the previous hydraulic steering. The 2013 RDX will be available in front-wheel-drive and all-wheel-drive variants.

Standard features for 2013 RDX include bold new 5-spoke 18-inch wheels and improved 4-wheel disc brakes that include an Anti-lock Braking System (ABS) with Electronic Brake Distribution (EBD) and Brake Assist. Not only do the brakes provide better performance, but they also incorporate improvements to lessen brake drag for reduced rolling resistance and improved fuel economy.

Replacing the turbocharged 2.3-liter inline 4-cylinder used with the previous RDX, the 2013 RDX will now have as standard equipment a 3.5-liter V-6 engine that produces 273 horsepower-- 33 more than the outgoing model. For even higher performance and improved fuel economy, the RDX makes use of an all-new 6-speed automatic transmission with a new lock-up torque converter. The RDX also gets a new, lighter weight all-wheel-drive system that provides outstanding performance and safety with increased efficiency to achieve higher fuel economy.

With an EPA estimated* city/highway fuel economy rating of 20/28 mpg, front-wheel-drive versions of the 2013 RDX are expected to offer the best fuel economy of any gasoline-powered V-6 luxury SUV in the class. All-wheel-drive models have an EPA estimated* city/highway fuel economy of 19/27 mpg.

The RDX boasts a sleek and more aerodynamic body, evolving RDX from a sporty, compact SUV to a more formal SUV appearance with a longer, sculpted hood and styling that is more elegant and sophisticated to match the Acura philosophy of timeless, beautiful design.

Inside the 2013 RDX, new sweeping shapes, matte surface trim, and generous use of leather combine to give the RDX interior an upscale look and luxury feel that Acura customers have come to expect. Abundant use of sound deadening materials and Active Sound Control team to provide an exceptionally quiet cabin. Additional interior features, such as larger door openings, more passenger room, increased cargo volume and an available power rear tailgate make the RDX interior even more accommodating and flexible.

The 2013 RDX will receive a host of new technologies including Pandora® internet radio interface, SMS text message feature, a Keyless Access System with smart entry and pushbutton start, and a three view rear camera. An available Technology Package will provide a full complement of relevant technologies, including an Acura ELS Surround® audio system, AcuraLink® Satellite Communication System, Acura Navigation System with Voice Recognition™, AcuraLink Real-Time Traffic with Traffic Rerouting™, and AcuraLink Real-Time Weather™ with radar image maps. New for 2013, an even more advanced navigation system utilizes a hard disk drive (HDD) with 60 gigabytes of storage capacity-- including 15 gigabytes that can be allocated for music storage.

Passenger safety has always been a cornerstone of every Acura model. In addition to using Acura's acclaimed Advanced Compatibility Engineering™ (ACE™) body structure, the 2013 RDX employs new design features and myriad high strength materials aimed specifically at occupant protection. Although yet to be tested, Acura anticipates that the RDX will achieve top crash safety ratings from both the NHTSA and IIHS.

The 2013 RDX will be produced (using U.S. and globally sourced parts) exclusively by the company's East Liberty, Ohio plant-- home to one of four of Honda plants ranked among the top five-rated assembly lines in North America in the J.D. Power and Associates' 2011 Initial Quality Study (IQS). The first generation RDX is produced at the Marysville, Ohio auto plant.

About Acura Acura offers a full line of technologically advanced performance luxury vehicles through a network of 272 dealers within the United States. The 2012 Acura lineup features six distinctive models including the RL luxury performance sedan, the TL performance luxury sedan, the TSX sports sedan and Sport Wagon, the turbocharged RDX crossover SUV, the MDX luxury SUV and the ZDX four-door sports coupe.

For media information and high-resolution photos of Acura vehicles, please visit www.acuranews.com. For consumer information, please visit www.acura.com.
*Preliminary EPA mileage estimate determined by Honda. Final EPA mileage estimates not available at the time of printing. Use for comparison purposes only.

Source;
http://www.hondanews.com/channels/corporate-headlines/releases/acura-debuts-2013-rdx-and-all-new-ilx-sedan-at-chicago-auto-show