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Has Lexus Struggles In Japan Caused Acura To Rethink Entry?
Honda has announced it will delay the introduction of its premium Acura brand to Japan by at least two years. The company was originally intending to bring Acura to its home market in 2008, but is changing its plans to a 2010-11 release. No specific reason was cited, except for the vague “[the decision was] based on a comprehensive evaluation of the current market environment.”

Both Lexus and Acura were started as premium brands in the US. Toyota introduced Lexus to the Japanese market in 2005 but sales initially sputtered until the LS was released late last year. Acura has no such super-premium model and will have to compete in the tough small-to-mid size market along with the German marques.

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Has Lexus Struggles In Japan Caused Acura To Rethink Entry?



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Will_Will_ - 7/18/2007 11:53:25 AM
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Lexus really shouldn't have been thrown in the title here.

"No specific reason was cited, except for the vague '[the decision was] based on a comprehensive evaluation of the current market environment.'"

Just about every automaker selling cars in Japan is "struggling." Japan's economy is still under a period of recovery.

http://asia.news.yahoo.com/070116/4/2vvv0.html

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Agent009Agent009 - 7/18/2007 12:07:51 PMView My AgentSpace
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Read between the lines:

"No specific reason was cited, except for the vague '[the decision was] based on a comprehensive evaluation of the current market environment.'"

Is what the competition is doing. In this case Lexus and they made a very rare mistake entering the market.



Will_Will_ - 7/18/2007 12:24:50 PM
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"Market environment" is the exact phrase that tells you they looked at all other brands too, not just Lexus. All of them are in a similar boat. If Mercedes/BMW/Audi were doing well, wouldn't you think Acura would still move forward?

There really was no "mistake." Lexus and Acura both needed to enter the Japanese market at some point, right? Lexus just took the leap first, without waiting out the current economic situation that Japan is in.

Let's say you're a young boy, playing in the woods with three other friends. When you reached a big ditch with no bridge in sight, the first person jumps across, only to get stuck in the mud. The rest of you leap across, no problem because you became aware that you needed to leap wider. Did that first person really make a "mistake" if all of you still needed to get across to the other side?




Agent009Agent009 - 7/18/2007 12:59:40 PMView My AgentSpace
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True. but when looking at the market you look for success and shortcomings. They found the German's success and the sole Japanese competitors shortcoming.

The successful had found the correct market. and they took note of that.

They also saw an example of the one that struggled until they did the same.

So they had a road map to success so to speak, and then they realized they need to enter the market better equipped than they are now.

If they had entered the market now, they probably would have suffered the same issues.



Agent009Agent009 - 7/18/2007 1:04:06 PMView My AgentSpace
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Funny when I think tuner market I think Honda above all else. So I doubt they have lost any ground there at all.

Honda may have been late to the SUV market, but when gas prices rose they were also in a better position than most anyone, just look at the sales figures.

However you are correct they have totally misjudged the luxury market here. Really no good reason that I can see.

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Agent009Agent009 - 7/18/2007 1:44:25 PMView My AgentSpace
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tuner cars for Honda

Fit
CRV
S2000
Civic

And other than Scion, Toyota has slim pickins in the tuner market.

But no doubt there are plenty of examples of each. The point is that Honda is still a force in the tuner market.

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BlakuraBlakura - 7/19/2007 8:14:37 AM
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Some of what you said is true, but one thing worth mentioning; the CR-V is the best selling SUV in America, also the Ridgeline has won virtually all comparisons that it has been involved in. I think Honda/Acura is playing it safe (smart) before leaping blindly...patience is a virtue.

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STJ88STJ88 - 7/18/2007 12:29:54 PM
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All the lexus models have been sold in Japan under toyota name's, aristo/GS altezza/IS celsior/LS soarer/SC windom/ES harrier/RX. And now the smae cars cost 20% more only becouse they ware the lexus badge.



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Will_Will_ - 7/18/2007 12:54:14 PM
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All these cars have been redesigned exclusively as Lexus models. You can put a Toyota badge on an IS250 if you want, it'd still be worth a 20% increase over an Altezza...


M35MTM35MT - 7/18/2007 1:15:02 PMView My AgentSpace
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Will is correct.

Toyota/Nissan always had premium/luxury vehicles in their home markets, and when they decided to bring them to the US - they knew they had to be marketed under another name becaues they had already established a reputation in the US.

It wasnt until this decade that Nissan/Toyota (I dont know much about Honda) created completely new cars that had no Nissan/Toyota counterparts - but with exceptions, for example, the G35/G37 is a skyline in Japan.

The IS300/Altezza was a great little car no matter which badge it wears, although, I have to admit that Lexus IS300 has more cache than Toyota Altezza...its all marketing.


DaveDave - 7/18/2007 3:09:09 PM
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Acura probably realized that you can't simply take off the Honda Logo on the Legend sedan in Japan, slap on an Acura logo, put the RL lettering on the trunk and expect it to sell as an upmarket brand. In order to give their own country a sense of new upmarket feel, they would have to time the launch of the Acura brand at the exact same time they completely revamp the entire lineup.


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ctsangctsang - 7/18/2007 4:44:07 PM
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don't forget the cost of separate high end dealships, can honda afford to spend the money?

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M316M316 - 7/18/2007 5:27:49 PM
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Err Ricemaster the Celsior (LS430,LS400) was always sold in Japan I can take some pics of one if you like. And the Aristo (GS300) uses the same platform as the Cresta/MarkII Grande. The Infinity Q45 is as well the Nissan Cima. I think it sell better because its better looking than any prior Celsior not because it has a new badge.


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ashramboyashramboy - 7/18/2007 8:20:57 PM
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Toyota = Lexus
if you are smart to know

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gsh23gsh23 - 7/19/2007 12:59:26 AM
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lexus is the most mature out of them all. i dont see how they made a mistake in japan. instead of half assing it, they built a full fledged network of lexus dealers and released 3 lexus only cars within 3 years. the logical next step would be the RX and SC (for japan). as for acura and infiniti? acura doesnt even have a mature lineup regardless of badge. acura even runs two different accords, the TL/US accord and TSX/world accord. infiniti is like lexus 5 years ago with the G/skyline, M/fuga. infiniti has stronger sales with the G and proper v8 RWD sedans (ditched the Q45) and SUVs.

so really the question isnt has lexus caused acura to rethink? its more like what can acura do to fix their lineup in the us, let alone japan?

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