Honda to Introduce Luxury Acura Cars to Japan in 2008

TOKYO December 14, 2005; The AP reported that Honda Motor Co. on Wednesday unveiled plans to sell its Acura brand of cars in Japan in 2008, bringing its successful North America luxury nameplate to the Japanese market for the first time.

Honda is the latest Japanese car maker to bring high-end North American marketing tactics to Japan, where new car sales have been flat. Earlier this year, Toyota Motor Corp. began selling cars in Japan under its luxury Lexus brand, and Nissan Motor Co. says it eventually wants to bring its Infiniti brand to the domestic market as well.

Honda's move underscores a heated global battle between car makers over the lucrative luxury autos market. Japanese car makers have had success largely in North America, where all three premium nameplates have been consistently good sellers.

Honda first introduced its Acura brand to the U.S. in 1986. But Japan's automakers have only recently made moves to tap the lucrative luxury auto market in Japan, long dominated by foreign rivals such as DaimlerChrysler AG's Mercedes-Benz division and BMW AG.

Honda's announcement highlights the struggles facing all Japanese car makers in boosting domestic sales. Japanese consumers bought roughly 5.9 million cars last year, little changed from the year before.

With luxury brands, the car makers hope to bag two important new sets of customers, both with considerable disposable income: young professionals and Japan's baby boomers, who will begin retiring in 2007.

Honda also said it will integrate its three dealerships in Japan into a single channel that will sell all models made by the automaker. A fourth retail network will focus on the Acura brand from the fall of 2008, and will start with 100 dealerships across Japan.

Honda said it hoped the changes would lead to annual sales of more than 800,000 vehicles in Japan. In 2004, Honda's domestic sales totaled 743,071 vehicles.