2011 Acura Mdx Base Sport Utility 4-door 3.7l on 2040-cars

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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.

2014 Acura RLX

Good. But Good Enough?
Spoiler alert: The 2014 Acura RLX is a good car. But that shouldn't come as a surprise. Despite the fact that Acura is subject to a lot of criticism for things like its odd positioning in the automotive landscape, questionable styling choices in recent years, and the fact that, more or less, its products feel like lux'd-up Hondas rather than something truly unique, the cars have always been inherently good - decent to drive, nice to sit in and reliable to own. That's what happens when you ride that sort of "affordable luxury" line.
Because Acura's sedans don't really fit into any one definable segment, the brand hopes it can draw customers from a broader range who aren't necessarily dedicated to a certain marque. And while there's certainly rhyme to that reason on the more entry-level end of the spectrum, that proposition makes less sense as you move toward higher price points. (Have a gander at the Hyundai Equus, if you will.) On the other hand, Acura pulled data from a 2012 Strategic Vision survey that showed the number one purchase decision for luxury buyers last year was value for the money, with manufacturer reputation coming in at a close second.

2013 Acura ILX 2.4

Going Mainstream Has Its Privileges
Acura's experiment with niche models has failed. Competing in the luxury car business by filling white space with product just didn't work for the Japanese automaker. In place of slow-selling models like its ZDX and quirky first-gen RDX, the mindset at Acura has recently switched to more conventional products with vastly improved volume potential. The redesigned 2013 RDX, for example, sold almost as many units in 2012 as it did in 2010 and 2011 combined, and the all-new 2013 ILX has sold more units each month - since going on sale in May - than Acura sold in ZDXs and RLs in all of last year.
While the redesigned RDX is a crucial product to compete with luxury compact crossovers, the ILX might be the most important new product for Acura, as a growing number of premium makes are starting to realize the importance of upscale entry-level compact cars. Ironically, this segment was a pivotal part of the brand's success in the 1980s and '90s thanks to the Integra, but Acura completely abandoned the genre when it killed off the RSX coupe in 2006. The addition of the ILX not only gives Acura a competitive small car again, it also drops the brand's entry price by almost $5,000.