Acura on track to reverse sales decline-executive

By Kevin Krolicki

DETROIT (Reuters) - Honda Motor Co.'s (7267.T: Quote, Profile, Research, Stock Buzz) Acura luxury division is on track to reverse recent sales declines and could recover to post a gain of between 3 percent and 5 percent this year in the U.S. market, the company's U.S. planning chief said on Tuesday.

Acura's U.S. sales for the first eight months of the year were down almost 8 percent from the unit's record sales of 2005, but Dan Bonawitz, Honda vice president for planning, said at the Reuters Autos Summit in Detroit that downtrend would be reversed in coming months with new product launches.

Acura has begun selling a new entry-level luxury sport-utility vehicle -- the RDX -- and will update the brand's flagship sedan, the TL, this month.

The brand also has a new model of its larger SUV, the MDX, launching for the 2007 model year.

Bonawitz said those new models would drive sales gains for Acura, putting it within reach of a target earlier this year for a sales rise of between 3 percent and 5 percent for 2006.

"I think it is (achievable)," Bonawitz said. "Obviously sales are off a little bit to this point."

Overall Honda U.S. sales, including Acura, have risen about 5 percent this year, driven by gains for the company's passenger cars, including the Civic and the Fit.

Acura broke ground earlier this year on the construction of a new design studio in Southern California, and Bonawitz said the company would push for bolder designs for Acura, which competes directly with BMW AG (BMWG.DE: Quote, Profile, Research, Stock Buzz).  Continued...