Should Honda dealers be concerned about cannibalization?

The article indicates Acura is to roll out a sub $30,000 sport sedan.

http://www.bloomberg.com/news/2011-12-12/honda-wants-new-acura-ilx-...

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Comment by Stan Sher on December 12, 2011 at 3:30pm

Here is my opinion.  Acura has done alright with the TSX model (which is priced almost the same as a Honda Accord EX-L V6).  The problem that Acura has always had was that they did not give themselves the luxury image that Infiniti or Lexus gave themselves.  I sold Acura cars before and even owned an RSX myself.  I love Acura because they make a nice car.  Acura has never treated customers extra special like Lexus does.  It is true that many people look at Acura as just another Honda.

I think Honda needs to lower the price of the Accord a few grand to allow Acura to justify the price, style, and luxury.  Also, if Acura starts making vehicles like they used to make I believe the popularity might improve.  I loved the TSX and TL for 2004-2008.  Those were amazing cars.

I also know from experience that if this Acura model is most similar to a Honda that is priced $5k less. Honda will get the business and Acura sales will continue to be slow.  I cannot tell you how many people I have had buy Honda Accord EX-L V6 from me just because they did not see value in spending more for an Acura.  So if history repeats itself dealers might not have to be too worried.

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