Acura dealers will have to work harder to stop defections

The shortage of vehicles on Acura lots over the past year is causing shoppers to look elsewhere, said Glenn Davis, chairman of the Acura National Dealer Advisory Board. Davis, who owns Davis Honda in Burlington, N.J., and Davis Acura in Langhorne, Pa.

That means that Acura dealers need to work harder to reestablish brand loyalty now that recovering inventory presents luxury buyers more choices on what to buy.

"Customer defection rates between luxury brands is at an all-time high because of lack of availability, and I think that'll continue and people will continue to switch brands," Davis told Automotive News.

In the past, he said, a strong leasing portfolio previously helped dealers keep buyers coming back in. But many leasing customers bought out their leases in the summer months when the buyout was lower than the value, and now higher leasing payments no longer offer the attractive proposition they once did.

"Acura needs to rededicate to its leasing business for the strength of the brand and future," Davis said.

American Honda, which includes both Honda and Acura brands, has been struggling to get vehicles to dealers. The group recorded a 33 percent drop in combined annual new-vehicle sales at the end of 2022, the steepest among all major manufacturers, and due mostly to supply constraint caused by the microchip shortage.

In December, Acura's sales slid 35 percent from 2021, but increased availability of the popular MDX three-row crossover and the new Integra in December helped it achieve its best sales month since April.