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Old 11 Mar 2014, 04:15 pm
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Default Honda spinning off Acura as stand-alone division in bid to wake up brand

Filed under: Acura, Honda, Luxury

Every major automaker has a different way of relating between its various divisions and brands. At Volkswagen, for example, the individual brands seem to operate with a large degree of autonomy. Under the Renault-Nissan Alliance, the two units share a common chief executive, but little else. The relationship between Honda and its luxury division Acura has always been rather close, but that's all about to change.

American Honda Motor Company has always handled sales and marketing in the North American market for both the Honda and Acura divisions, but new reorganization plans call for the two units to be separated under their own direction. Leading the Acura division will be Michael Accavitti, who moves into the position from his role as Senior Vice President for Auto Operations at American Honda. The Honda division will meanwhile be taken over by the current head of Acura sales, Jeff Conrad.

Both will report to John Mendel, the current executive vice president of the Automobile Sales Division that is being rebranded as the American Honda Auto Division. Unlike rivals Lexus and Infiniti - two brands that Acura beat to the market - Honda barely markets its luxury brand outside of North America. Its overseas presence is felt only in China, though we've yet to receive word on how the reorganization might effect that market - or for that matter, any potential of expanding into others.

This reorganization is seen as a vital step in revitalizing the Acura brand, accompanied by a product line overhaul that's concentrating on new sedans like the ILX, TLX and RLX, but also promises to yield new crossovers and the new NSX as its halo model. The reorganization takes effect on April 1, which may ring some alarm bells on the hoax-o-meter, but this wouldn't strike us as a very funny joke if it were one. Scroll down for the official announcement.Continue reading Honda spinning off Acura as stand-alone division in bid to wake up brand

Honda spinning off Acura as stand-alone division in bid to wake up brand originally appeared on Autoblog on Tue, 11 Mar 2014 13:30:00 EST. Please see our terms for use of feeds.

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