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Sony Honda EV venture's plan for online sales has dealers squirming

TOKYO/DETROIT — A new joint venture formed by Japan's Sony Group Corp and Honda Motor plans to introduce a premium electric vehicle later this decade, and the automaker's U.S. dealers are anxious to be part of the sales process. Sony Honda Mobility said on Thursday it was aiming to deliver the first of the unnamed EV by 2026, starting in the United States, and will sell them online. The success of Tesla at selling EVs without franchised dealers is putting pressure on established automakers to overhaul their retail networks. That leaves dealers across most brands concerned about their place in the changing world and whether profits will be squeezed. The online aspect of the Sony Honda plan, as well as the lack of details around how the vehicle will be sold and serviced, has raised questions with the Honda and Acura brand dealers. Many nonetheless expect Honda to work through the existing retail network. "These issues are certainly a concern," said Brian Benstock, general manager and vice president of Paragon Honda and Paragon Acura in Queens, New York. "The best path forward is with the dealers." "We have a role (automakers) can't replicate," said Benstock, who also is on the Acura national dealer advisory board and has spoken with Honda officials about the new vehicle. "There's no way that Honda wants to hurt their existing dealer body." Some dealers questioned why Honda would even consider trying to work outside the current U.S. sales network given its national reach. Honda has about 1,100 Honda dealers and 270 Acura dealers. A Honda spokesperson referred questions about the joint venture to the new company. Sony Honda spokesperson Mai Nagadome said there are still a lot of details to finalize, but selling through the dealers has not been ruled out and customers would feel uneasy without some kind of after-sales service process. "The cost of continuing to develop (internal combustion engine) products along with EVs and autonomous tech and software for the next generation vehicles is proving to be quite the challenge," said Peter Hennessy, dealer principal of Atlanta-based Hennessy Automobile Companies, which includes a Honda store. "I get teaming up with Sony, but it should be done in conjunction with the dealer network, not outside it," he added.

2019 Acura ILX gets a makeover with more standard safety features

The 2019 Acura ILX compact luxury sedan has finally been redesigned to fit the look introduced by the TLX and RDX. According to Acura, the entire nose from the A-pillar forward and the whole rear fascia have been changed. Up front the car has the pentagonal grille and angry LED lights that are Acura signatures, and they're complemented by crisply creased sheetmetal across the rest of the car. The results are a far sportier, far less anonymous machine. The car will continue to be available in normal and A-Spec versions, with the latter consisting mainly of appearance items such as 18-inch wheels, dark trim and lights, and a rear spoiler. Exterior enhancements are the primary change to the new ILX. The interior is nearly unchanged except the A-Spec has some stylish sport seats similar to those in the RDX A-Spec. Acura also says the infotainment system has been upgraded to be faster, and it has fresh graphics and Apple CarPlay and Android Auto compatibility. But this is not the system found in the completely new RDX, just an updated version of the current infotainment. The last big upgrade to the ILX is the inclusion of the complete AcuraWatch suite of safety features on all ILX models. This includes automatic emergency braking, lane-keep assist, adaptive cruise control and road departure mitigation. Aside from these changes, the ILX is still pretty much the same as the old one. Under the skin is the same naturally aspirated 201-horsepower 2.4-liter four-cylinder as the current model. It's still coupled to an eight-speed dual-clutch automatic transmission and powers solely the front wheels. The 2019 ILX goes on sale in October, but pricing has not yet been announced. Related Video:

Acura built just 91 examples of the ILX last month, here's why

The short life of the Acura ILX has been vexed by one glaringly odd standard equipment choice, mediocre reviews, getting outsold by its competition as it posted slower-than-projected sales and a pledge by Honda to upgrade its supposedly upgraded offering. Therefore, when Automotive News reports that just 91 of the Civic-based Acura sedans were manufactured last month - after a string of production months in double-digits - it would be easy to press the button for the alarm bells.
But that would be hasty, because it is actually the 2013 Honda Civic that is crimping the production pipeline of the ILX. The vastly higher sales numbers of the Honda meant that all three North American plants that produce it needed to crank up output to satisfy dealer inventory needs, including the Greenburg, Indiana plant that makes both the Civic and the ILX. As the classic guns-vs-butter Economy 101 lesson taught us - in which making more of one necessarily means making less of the other - well, the Civic is the gun.
Honda prepared for this eventuality by cranking out the Acuras while it got ready for Civic production. The ILX has held steady at about 500 units shy of company projections every month, and the current inventory represents about 90 days worth of sales. That makes Greenburg's ostensibly low numbers in line with the realities of the ILX, and the situation probably won't change much as Acura gets ready for the improved 2014 ILX.