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New TLX is Acura's Second Best-Selling Model After Two Months on the Market

8K views 21 replies 10 participants last post by  germeezy1 
#1 ·
New TLX is Acura's Second Best-Selling Model After Two Months on the Market

Acura says the new TLX midsize sedan is selling well in the United States, with promising prospects after two full months on the market. Tipped to revive Honda’s luxury brand, the TLX convinced 4,890 U.S. customers in October, with only the MDX seven-seat crossover posting slightly better sales.

October TLX sales were up 26 percent from September, the first full month of sales for the TLX, which arrived in dealerships in late August. The TLX accounted for nearly one-third of Acura’s sales volume overall, with deliveries for the brand rising 8 percent in October.

http://www.carscoops.com/2014/12/new-tlx-is-acuras-second-best-selling.html
 
#4 ·
I doubt this is stealing MKZ customers away as much as MKC is stealing MKZ customers away. Lincoln has a VERY small pool of customers with slow growth so we are seeing allot of cannibalization right now, but Acura has a much larger established customer base. I'm not sure what Lincoln's targeted growth rate is right now but it's partially offset by increased pricing which is changing the established customer, especially on MKZ. It looks like Lincoln is just having a really tough time getting new customers in the door and it may take more awareness before we see solid momentum driving sales up consistently above 3K for both MKZ and MKC. If neither MKC or MKZ sustainably average 3K (or better) per month over the next 12 months, then I would be concerned. Lincoln just needs to find more ways to grab attention and interest, either with amazing quality rankings, customer satisfaction, journalist awards...something that makes them standout and reassures customers that Lincoln is a legit luxury car. Otherwise it'll just be a slow unprofitable slog year by year until they inch their way up...which is also just fine.
 
#7 ·
I doubt this is stealing MKZ customers away as much as MKC is stealing MKZ customers away. Lincoln has a VERY small pool of customers with slow growth so we are seeing allot of cannibalization right now, but Acura has a much larger established customer base. I'm not sure what Lincoln's targeted growth rate is right now but it's partially offset by increased pricing which is changing the established customer, especially on MKZ. It looks like Lincoln is just having a really tough time getting new customers in the door and it may take more awareness before we see solid momentum driving sales up consistently above 3K for both MKZ and MKC. If neither MKC or MKZ sustainably average 3K (or better) per month over the next 12 months, then I would be concerned. Lincoln just needs to find more ways to grab attention and interest, either with amazing quality rankings, customer satisfaction, journalist awards...something that makes them standout and reassures customers that Lincoln is a legit luxury car. Otherwise it'll just be a slow unprofitable slog year by year until they inch their way up...which is also just fine.
yeah, I totally agree Borg, more than the TLX I think the reason Lincoln is not selling that good is the brand awareness
 
#8 ·
The TLX that is replacing the TSX(sedan/sports wagon)with sales down -96% to 48 units, and the TL with sales down -91% to 105. Along with pulling from the Civic/ILX down -19% that starts at the same $30k price point. Then there is the new 2015 RLX down -68% to just 260 units.

The 109" wheelbase TLX is Acura's answer to the Lexus IS, with the RLX at a 112" wheelbase is just 3" longer starting at $18k more.

MDX was also down -5%.

So it seems the cheaper 9and almost the size of the RLX0 TLX is pulling sales from the entire Acura sedan lineup.
 
#10 ·
The TLX is also much roomier than MKZ, something I'm sure will change once they move away from Fusion next-gen.
The TLX is selling in Acura dealerships because it's almost the size of the RLX/Accord(same as MKZ), but starting $18k less. Which has tanked higher margin RLX sales that are down -68%, and tanked smaller ILX sales down -19% starting at the same $30k price point.

Clearly Acura is planning on either discontinuing a few models, or repositioning them in their lineup.

TLX is a near luxury segment from Acura that Lincoln does not offer a product.
 
#11 ·
MKZ is somewhere in-between, it's smaller than popular competing midsize luxury cars but bigger than the compacts (not platform dimensions, but interior spaciousness). Lincoln doesn't have a vehicle in that sweet spot, unless MKS fills that spot better this time. But I don't think people are buying MKZ because it's more practical, but because it's more interesting and special to them. Ultimately that's not a large customer however and I imagine Lincoln is look toward the future when they can develop their own platform hard points instead of reskining much cheaper cars that aren't framed to luxury car tastes.
 
#13 ·
MKZ is somewhere in-between, it's smaller than popular competing midsize luxury cars but bigger than the compacts (not platform dimensions, but interior spaciousness). Lincoln doesn't have a vehicle in that sweet spot, unless MKS fills that spot better this time. But I don't think people are buying MKZ because it's more practical, but because it's more interesting and special to them. Ultimately that's not a large customer however and I imagine Lincoln is look toward the future when they can develop their own platform hard points instead of reskining much cheaper cars that aren't framed to luxury car tastes.
Exactly. The MKZ exists because Lincoln was missing two vehicles from two different growing and highly profitable segments. But instead of directly competing, underfunded Lincoln went directly for the ES where Toyota did the exact same thing. But better funded Lexus quickly launched the IS that filled the lower segment, and then re-engineered the ES to look larger, but on the same smaller wheelbase(Toyota is not big on spending on new platforms), in an attempt to compete with the class above.

However, with a next gen MKS coming that directly competes in 5/E class, and the next gen MKZ that is to compete directly with the 3/C class, Lincoln will finally be able to stand toe-to-toe with the big boys.

Also with the next gen MKZ moving slightly more upmarket, it opens up a whitespace for a much needed Lincoln CLA/A3 competitor on a global scale.
 
#15 ·
Right now I don't think Lincoln has much choice in how it competes with other cars, at least when it comes to size and packaging. That's dictated entirely by the Ford it's based on. It'll be interesting to see what the MKS is like, but like the MKZ I don't expect Lincoln to be targeting German customers.
 
#16 ·
Right now I don't think Lincoln has much choice in how it competes with other cars, at least when it comes to size and packaging. That's dictated entirely by the Ford it's based on. It'll be interesting to see what the MKS is like, but like the MKZ I don't expect Lincoln to be targeting German customers.
true I expect more a XTS competition rather than the germans. The MKX will go after RX, SRX and Aviator after MDX
 
#17 ·
The TLX is selling in Acura dealerships because it's almost the size of the RLX/Accord(same as MKZ), but starting $18k les.
The TLX is based on the current Accord, they are nearly identical in size.

TLX
Wheelbase: 109.3in
Length: 190.3in
Width: 73.0in
Height: 57.0in

Accord Sedan
Wheelbase: 109.3in
Length: 191.4in
Width: 72.8in
Height: 57.7in


RLX is wider and longer than both the Accord and TLX, technically the RLX competes with the MKS and XTS.
The current slightly downsized Accord (the TLX is based on) and the bigger RLX were designed to be large inside, but have a more compact exterior.

The RLX is sold as the Honda Legend in Japan.

The "Acura" brand doesn't exist in Japan, so the more expensive high-end premium Hondas are still badged as Hondas.
The RLX/Legend is also the last "new" Honda sedan to use a double-wishbone front suspension.



joseodiaga4 said:
true I expect more a XTS competition rather than the germans. The MKX will go after RX, SRX and Aviator after MDX
This is off-topic, but is there any article or insider report that confirms Lincoln really plans to revive the "Aviator" name?
 
#18 ·
I doubt this is stealing MKZ customers away as much as MKC is stealing MKZ customers away. Lincoln has a VERY small pool of customers with slow growth so we are seeing allot of cannibalization right now, but Acura has a much larger established customer base. I'm not sure what Lincoln's targeted growth rate is right now but it's partially offset by increased pricing which is changing the established customer, especially on MKZ. It looks like Lincoln is just having a really tough time getting new customers in the door and it may take more awareness before we see solid momentum driving sales up consistently above 3K for both MKZ and MKC. If neither MKC or MKZ sustainably average 3K (or better) per month over the next 12 months, then I would be concerned. Lincoln just needs to find more ways to grab attention and interest, either with amazing quality rankings, customer satisfaction, journalist awards...something that makes them standout and reassures customers that Lincoln is a legit luxury car. Otherwise it'll just be a slow unprofitable slog year by year until they inch their way up...which is also just fine.
Acura 28 years in the market
Lincoln almost 100 years selling cars...

I doubt the customers base for Acura is bigger.

And the TLS is the car that replace 2 medium size cars.... and still not sold much more than the MKZ
 
#19 ·
Exactly. The MKZ exists because Lincoln was missing two vehicles from two different growing and highly profitable segments. But instead of directly competing, underfunded Lincoln went directly for the ES where Toyota did the exact same thing. But better funded Lexus quickly launched the IS that filled the lower segment, and then re-engineered the ES to look larger, but on the same smaller wheelbase(Toyota is not big on spending on new platforms), in an attempt to compete with the class above.

However, with a next gen MKS coming that directly competes in 5/E class, and the next gen MKZ that is to compete directly with the 3/C class, Lincoln will finally be able to stand toe-to-toe with the big boys.

Also with the next gen MKZ moving slightly more upmarket, it opens up a whitespace for a much needed Lincoln CLA/A3 competitor on a global scale.

I think Lincoln doesnt need to compete directly with the germans, having a cars in 3 different sizes. Looks what is happen with Cadillac. Is failing and losing customers.
A medium size sedan, a big sedan, and 3 CUVs (small, medium and big) plus the Navigator is OK for the next 5 years. A sedan bigger than the MK S could complete the line up for 2020... A Mercedes-Benz CLA competiror from Lincoln? Is no good time for that. Maybe in in the next decade...
 
#20 ·
Acura 28 years in the market
Lincoln almost 100 years selling cars...

I doubt the customers base for Acura is bigger.

And the TLS is the car that replace 2 medium size cars.... and still not sold much more than the MKZ
It doesn't matter if Lincoln was on the market for 1000 years. Acura sells more so yes the customer base is larger.
 
#21 ·
It doesn't matter if Lincoln was on the market for 1000 years. Acura sells more so yes the customer base is larger.

In 2013: Acura 186000 vehicles sold. Lincoln 82000. Twice, to be exact.

But the heritage and the brand recogntion plays for Lincoln. It is matter of time. With the rigth products, Lincoln will reclaim its place in the luxury market
 
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