Acura seeks to conquer with product updates

Acura is undergoing a profound product transformation, which started with the RDX compact crossover and significant refreshes of other models, but 2020 in particular should position the brand to conquest rivals and increase sales in a flat or down market. Both the TLX midsize sedan and MDX midsize crossover will be fully redesigned.

"The market isn't growing, so everybody's trying to conquer each other's sales," said John Rickards, chairman of the Acura National Dealer Advisory Board and president of Bobby Rahal Automotive Group in Pennsylvania. "And I would say for Acura, if there's a time that's right to be doing their conquesting of other brands, it's now; 2020 is going to be the year."

Even without a lot of product news last year after the RDX was redesigned in 2018, Acura held its own with recently refreshed products, factory support for the growing certified pre-owned program, and targeted incentives when they were needed.

New sales fell 1 percent overall, but some vehicles such as the ILX sedan made big conquest gains.

"The new RDX laid the groundwork, and with the new MDX and TLX coming out in 2020, if they're as good and solid as the RDX, which I think they will be, I believe we're going to get a great conquesting year and get new buyers to our product that we haven't seen before," Rickards said.

While the Acura lineup of four core vehicles — two crossovers and two sedans — will have undergone full platform and styling updates within a couple of years, dealers think there's room for an additional crossover, probably below the RDX where there is some real volume to be had, Rickards said.

"I do believe, the dealer body believes, that we really need an additional SUV or CUV in the lineup as the market is shifting more and more toward that, and less to cars," he said. "We need to keep our cars strong. But we need to have another [crossover] model in play to compete with our competition. And with that, I think we can really grow the brand."

The dealer body is also very much interested in the parts of the business that can improve profitability at the retail level and affordability for buyers as new-car prices keep rising. And Acura has been very aggressive bolstering its CPO program with a better warranty and a free maintenance service, plus advertising and finance support for the CPO channel.

"I think with their marketing in this area, they are looking at ways to make this the first channel coming into the Acura brand and be able to take [buyers] from this experience and into a new vehicle. And I think that plan's working," Rickards said.