Honda sets up new office to revive struggling Acura brand
Honda has created a dedicated Acura Business Planning Office, led by Erik Berkman, to address falling US sales and sharpen the luxury marque’s identity.
Honda has established a new Acura Business Planning Office in a move to address persistent sales challenges and a lack of clear identity for its luxury brand in North America. The office is headed by Erik Berkman, who moves from his role as president of Honda R&D Americas to executive vice president for the North American unit and division manager of the new Acura office.
The creation of the Acura Business Planning Office signals a shift in Honda’s approach to its premium division, which has struggled to define itself against established luxury rivals. Honda’s statement positions Berkman’s appointment as a sign of the priority now being given to Acura. He is tasked with developing a new strategy to reverse declining sales and clarify the brand’s position in the market.
Sales challenges and model performance
Acura’s US sales fell by 10% in 2013, with its sedan range, ILX, TSX, TL and RLX, failing to meet expectations. The brand’s SUVs, the MDX and RDX, performed better but were not enough to offset the decline in the car line-up. The sales drop left Acura short of its targets and highlighted the need for a clearer brand direction.
Industry analysts have pointed to Acura’s lack of a distinct identity as a key issue, noting that while its cars are reliable and well-built, they struggle to stand out in the competitive US luxury segment. Honda’s new office is expected to focus on sharpening Acura’s image and product strategy.
Planned product updates and future models
Honda’s immediate plans for Acura include launching the TLX sedan to replace both the TL and TSX, aiming to streamline the line-up and improve competitiveness. Updates to the ILX compact sedan’s powertrain are also scheduled. Looking ahead, the NSX high-performance coupe is set to return in 2015, intended to inject some excitement and draw attention to the brand.
- New TLX sedan to replace TL and TSX
- Powertrain updates for ILX compact sedan
- Return of NSX supercar planned for 2015
The restructuring comes as other Japanese and European luxury brands continue to invest heavily in new models and technology. Honda’s move to create a dedicated planning office for Acura is a clear attempt to ensure the brand remains relevant and competitive in the US market.
