Acura sets sights on Gen-Y status seekers to boost sales

Acura has re-entered the small luxury car market with a model aimed at the first wave of 30-something Generation-Y success stories looking for an affordable car that reflects their status.

Honda's luxury brand showed its 2013 ILX five-passenger sedan and its redesigned 2013 RDX small SUV to the media Thursday in Novi. Both models factor heavily in the brand's hopes to rebound from falling sales, say Acura officials.

The RDX went on sale this month. Three four-cylinder versions of the ILX, including Acura's first hybrid (with a price range of $28,900 to $34,400) will be in showrooms by May 22.

The new ILX has the looks but not quite the zing of the old RSX, a Honda Civic-based car Acura last sold in 2006. That's because market research told Acura's product planners that image, style and technology are more important than performance to the targeted Gen-Y buyers.

"They grew up in affluent times and know what they want, but they are going to need help to get there," said Mike Accavitti, marketing vice president of Honda in America.

The IXL will be offered in a base $25,900 model with a 150 horsepower, 2-liter engine, and five-speed-automatic transmission that gets an estimated 24 miles per gallon city and 35 mpg highway.

A 201 horsepower, 2.4-liter engine that gets 22 mpg city and 31 mpg highway, will be offered in a $29,200 premium edition, with a six-speed-manual transmission.

The hybrid uses a 91 horsepower, 1.5-liter gasoline engine and 20 horsepower electric motor in combination with a lithium-ion storage battery to get an estimated 39 mpg in the city and 38 mpg on the highway. It will sell for between $28,900 and $34,400. The car has an "eco" driving mode selector button that allows the choice of maximum fuel efficient driving or maximum use of the car's muscle for acceleration.

Acura said the RDX redesign also was based on a reassessment of its core buyers. Instead of single males, double income-no kids couples and empty nesters are most likely to buy the longer and wider 2013 RDX.

The RDX boasts an increase in handling and horsepower. A 273-horsepower 3.5-liter V-6 replaces the previous model's 240 horsepower, 2.3-liter turbocharged four-cylinder. The larger new engine improved fuel efficiency with 19 mpg city and 27 mpg highway for the all-wheel-drive model, and 20 city, 28 highway for the front-wheel drive.

The front-wheel drive will sell for between $34,320 and $38,020. The four-wheel drive will list between $35,720 and $39,420.

Source: The Detroit News: