Acura sees 2006 U.S. sales up 3 pct to 5 pct
By Kevin Krolicki
DETROIT, March 16 (Reuters) - Acura, the luxury brand of Honda Motor Co. (7267.T: Quote, Profile, Research), expects to post a 3 percent to 5 percent gain in U.S. sales in 2006 from the record sales tally of last year, a senior executive said on Thursday.
But John Mendel, senior vice president of American Honda, also said Acura’s experience also shows that both new entrants and resurgent competitors have the potential to upset the high-margin segment of the slow-growth U.S. auto market.
“I don’t think you can with any certainty rule out anyone,” said Mendel, who was speaking before the Automotive Press Association. “I think GM will rebound. I think the Chinese are a threat. I think the Koreans are a threat.”
Acura, which launched in 1986, faced initial skepticism that American consumers would pay high prices for Japanese cars, which had a reputation for no-nonsense fuel-efficiency, Mendel said.
But the brand recorded U.S. sales of 209,610 vehicles in 2005 — its highest ever — and has expanded its dealer network from 60 outlets two decades ago to over 260 currently.