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  TOV News > American Honda Reports July Auto Sales: CR-V Sets Seventh Consecutive Monthly Sales Record; > > Market Share and the ILX

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iutodd
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Market Share and the ILX [View News Item]    (Score: 1, Normal) 08-02-2012 23:46
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10.1% in the month of July for AHM. That's pretty good.

And when I think about the ILX - a lot of the criticism about the ILX has been that it is not good enough when compared to the TSX, especially since you can option the ILX to basically the same price as the TSX. I don't know if that is true or not and that doesn't really matter. What I do know is that Buick has introduced the Verano and it is way outselling the ILX so far and has also been, if not praised, a solid critical success. But to me the purpose of introducing a new model is to gain new customers and expand market share. Well the Verano is selling well but the Regal and the LaCrosse were way down this month compared to last year - and GM is also down 2% in market share. So, yes, the Verano might be a success...but how is it helping General Motors?

Which brings us to the ILX and the TSX. The TSX has never been a huge seller in the states - maxing out at 38,000 units in 2006. Even with all of the inventory problems of last year TSX sales were relatively stable compared to other Honda or Acura vehicles. And now, with the ILX in it's second full month of sales the TSX hasn't really blinked and is up 20% over last year - in fact it is on pace to have it's best year since 2006 and it might end up being it's second best year of sales ever. Obviously that could change, but so far Acura has to be happy with the sales of these two vehicles. I did think that Acura was foolish in introducing the ILX without any ED tech but now I don't know. If the TSX can continue it's good sales and the ILX can hit that 1500-2000 unit per month mark then the ILX has to be considered more of a success than people will ever give it credit for because expanding market share is important. In short, so far it looks like people that wanted a TSX are still buying the TSX and new customers are coming in to buy the ILX.

Now - do I think the ILX is a home run? No I don't. But Acura has put itself in pretty good position for the next 18 months. They can axe the TSX while at the same time put new powertrains into the ILX (and adding trim levels: 2.4 advance and 2.4 auto) to make it a proper TSX replacement OR they can keep the TSX name and do the same thing with the ILX while making the TSX more of a niche vehicle (wagon only and/or SE 6AT only and/or put a diesel in it). It seems like Acura's product planners get a lot of flak around here but if these sales numbers continue then, in my opinion, they have done the right things over the past 12-18 months (TL MMC, TSX MMC, TSX Sportwagon, ILX) - hopefully they continue to make solid decisions with all the product that is forthcoming and market share continues to expand.
 
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