Here's the Honda Civic reveal from 2011 NAIAS. Will the Acura ILX be more favorably received?
Honda Manufacturing of Indiana – HMIN – today announced that it will be the sole manufacturer starting in the spring of 2012 of the Acura ILX, an all-new compact sedan. Acura ILX will be the least expensive vehicle – starting at less than $30,000? – and offer both a gasoline and gas-electric hybrid powertrain options.
Acura ILX will be Acura’s first hybrid model in a segment where it and other luxury brands badly trail Lexus. It will also be the first Acura model produced in Greensburg, Indiana, which also builds the new 2012 Civic model. The plant recently added nearly 1,000 associates to support the move to two-shift production, which started on Oct. 24, 2011, doubling the plant’s capacity to 200,000 vehicles per year.
Aside from the economies gained by platform, component and assembly commonality, the strong Yen, which has damaged Japanese automakers results along with production disruptions from Asian natural disasters, is no doubt a factor in the decisions to build a Hoosier Acura.
In the first two quarters of the Japanese fiscal year, Honda profits dropped ¥316 billion to ¥92 billion compared to the same period in 2010. As with other Japanese automakers, Honda is increasing production overseas as a hedge against the Yen, which shows no sign of weakening.
Honda, of course, was the first major Japanese automaker to move offshore when it opened Marysville, Ohio to build the Accord starting in November 1982. The success of the Accord set a path for Honda’s huge American expansion, and proved that assembling cars in America was a viable proposition for Japanese makers, prompting Toyota and Nissan, among others to follow.
Acura ILX is crucial to attracting drivers from the BMW 3-Series as well as smaller Lexus, Mercedes and Audi sedans as younger generation buyers gain affluence. However, if ILX is just a re-skinned Civic with leather and more electronic gizmos, the ILX will be dead on arrival. Acura brand sales totaled 110,170 through November, off from 118,117 during the same period in 2010.
The 2012 Civic has been poorly reviewed almost universally as too bland and derivative of past Civics, and whose sales are flat compared to the Civic it replaced. In what is a major public relations error, Honda did not even release a teaser photo of the ILX.
The larger Japanese built TSX sedan is Acura’s current price leader, starting at ~$32,000 with an EPA combined rating of 26 mpg. Fuel economy regulations are forcing automakers to downsize offerings to increase automaker CAFE averages that are increasing to as high as 50 mpg in a current proposal.
The Acura ILX will join the TL sedan, ZDX crossover vehicle, and the MDX and RDX sport-utility vehicles as the fifth Acura model produced exclusively in North America. Acura finished second – third overall – among all luxury brands in the J.D. Power and Associates’ 2011 Initial Quality Study behind guess who – ichiban Lexus, which bested Honda for the top spot. (See Quality Drops Drastically as Automakers Introduce New Models)
Acura will unveil a concept version of the new ILX sedan at the 2012 North American International Auto Show – NAIAS – in Detroit during media preview days. The ILX will come with a standard 2-liter 4-cylinder engine with an automatic transmission; a performance 2.4-liter, manual transmission model; and a 1.5-liter hybrid version. Styling and performance will determine its fate.
See:
- NAIAS – Acura, Lexus, Honda Will Out in Force in Detroit
- Mixed U.S. October Sales Results for Japanese Three. Toyota Sales Down 8%. Honda Sales +3%. Nissan October Sales +18%
- Honda Production Returns to Normal in December. Resourcing Components Helps Ongoing Thailand Flood Disruptions
- Toyota Cuts 2012 Forecast as Yen and Thailand Floods Hurt
- Toyota Loses ¥33 Billion in First Half FY 2012. Scraps Forecast
