Acura RL sales continue to nosedive

With strong light truck and robust sales of the all-new 2006 Civic, American Honda Motor Co., Inc., posted record March results of 128,806 Honda and Acura vehicle sales, an increase of 0.2 percent over March 2005. Light trucks for American Honda also posted record March results with sales of 56,786, up 1.8 percent. Year-to-date American Honda total vehicle sales of 333,844 are up 8.3 percent on a daily selling rate basis.

The Honda Division posted its best March and third consecutive record month with sales of 111,282 cars and light trucks, an increase of 1.2 percent over year-ago results. Civic sales of 28,969 reflect a 14.0 percent March increase. In its second best month since launch, Ridgeline sales of 5,344 rose almost 38 percent, helping the division post record March sales of 52,104 trucks, up 2.7 percent over year-ago results. The Odyssey and Pilot also posted record March sales, up 2.0 percent and 7.4 percent respectively. Honda sold a total of 2,892 hybrid vehicles, including 2,232 Civic Hybrids and 581 Accord Hybrids. Year-to-date Honda hybrid sales of 9,102 are up 0.9 percent.

"Honda's March sales numbers show that consumers are still embracing the light truck segment amid the prospect of rising energy costs," said Dick Colliver, executive vice president of American Honda. "Consumers are, however, seeking light trucks with higher fuel economy, and Honda's numbers reflect that."

The Acura Division posted strong March sales of 17,524 with record March sales of 3,355 for the TSX. The TL luxury performance sedan was Acura's best-selling model with March sales of 6,767 and year-to-date sales of 16,804.

Driven by another month of record sales for the TSX and strong sales of the TL luxury sedan, Acura sold 17,524 units during the month of March, the division announced today.

The TSX sports sedan continued its recent sales momentum in March, with 3,355 units sold during the month, up eight percent from the previous record of 3,107 set in 2005. Year-to-date sales totals of the TSX reached 9,233 units - up nearly 16 percent from a year ago. The sales numbers for the sports sedan also marked the fourth straight month of record sales for the model.

The TL performance luxury sedan was the top selling Acura in March, with 6,767 units sold, bringing the TL year-to-date sales total to 16,804.

"The TSX and TL continue to be our most consistent performers, positioning Acura for another record year," said Dick Colliver, executive vice president sales. "Bolstered by strong sedan sales, Acura heads into the New York Auto Show next week, where our all-new light truck lineup will take center stage."

atomicbri - 4/5/2006 12:11:58 AM

+1 Boost

THe company that started the luxury Jap lines I think has fallen behind. Honda needs to stop basing every Acura on or off of a Honda in Japanese and European markets and create a real Acura. Until they do this, I feel Acura will only be a near luxury car while Lexus and Infiniti move further away from Acura. They have nice cars, but still to Honda-like to me.

cktoo - 4/6/2006 5:38:46 PM

+1 Boost

Wrong, Acura was the first Japanese luxury automaker. March of 1986 for Acura. Lexus and Infiniti were some 12 months or more later.<br>
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As for competing or not, Acura continually beats its sales year over year, so they are definitely competitive in the marketplace. They have and do have problems (RL), which like someone else stated can be attributed to their more conservative nature on approaching the high end luxury market. From an auto company perspective, they are still relatively small, unlike Toyota, BMW, MB, etc., so they play it safe. Also, they seem to be more inclined to play in the "near-luxury" segment because the numbers are there. Why spend a fortune on a 7 Series or S Class fighter when you can sell 10 times as many TSX's or TL's with good margins, especially since they are using existing platforms.<br>
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Business-wise I understand that, but don't necessarily like it. I think Acura could compete with Lexus/Infinite/BMW in a greater capacity if they wanted too, but for now they choose not to. That may be changing if the engine and design rumors that are floating around are true. We shall see.

cktoo - 4/6/2006 9:09:25 PM

+1 Boost

..on the brand recognition part. Plus, Acura would have to step up in the dealer butt-kissing department and revamp their showrooms. Their showrooms don't look very high end at all and their sales people can't even deal with a $49k car (RL), much less a $70k car.

As for pricing, I think that is what has done in the RL. Acura is looking against BMW 530, Audi A6, and the 6 cyl Lexus/Infiniti, unfortunately at their price people automatically jump to the 8 cyl. Japanese/German offerings. If you price the other 8 cyl cars like the RL it is a big price advantage for the RL, but people don't care. I would argue, however, it is more the rwd than the 8 cyl. Most of Lexus/Infiniti's sales are coming from the 6 cyl if you look at the numbers. Again, I believe that has more to do with the rwd and better treatment/sales by the other brands. That is not going to be easily overcome with just a good product like the RL, it must be much better.