Honda to launch Crosstour

With 'worst behind' in tough auto market, carmaker bets on crossover growth

Scott Burgess / The Detroit News

That light at the end of the tunnel could be Honda's new crossover.

After surviving an extremely tough auto sales market in 2009, Honda Motor Co. will end the year with the introduction of the 2010 Honda Accord Crosstour, which will hit dealerships in the coming weeks.

Through September, overall automotive sales have dropped 27.4 percent, while Honda's sales have fallen 25.1 percent, according to Autodata Corp.

"The worst is behind us," said Honda's John Mendel, vice president of automobile operations of America Honda Motor Co., in October during the media launch of the Crosstour.

The Crosstour, a low-slung crossover that shares 60 percent of its parts with the popular Accord sedan, is aimed at young consumers starting families, and empty nesters who have downsized their automotive needs, said Lee DaSilva, senior product planner for the Accord Crosstour.

Honda projects continued growth in crossover sales in the coming years as consumers dump SUVs and sedans as family haulers. Mendel said in 2010 Honda expects 2.48 million crossovers to be sold industrywide while SUVs will make up 777,000 sales.

Honda already has seen its smaller CR-V become the No. 1 compact crossover in the United States in 2006, ousting the Ford Escape, and now a larger Accord Crosstour will take on the likes of the Toyota Venza, Nissan Murano and Ford Edge.

It will also be the first time the Accord platform offers an all-wheel drive configuration, he said.

The Crosstour will start at $29,670, not including $710 for shipping, and come in five model variations ranging from the base EX to the all-wheel drive EX-L with a navigation system, pushing that model to start at $36,220.

Jack Nerad, editorial director and industry analyst at Kelley Blue Book, said Honda's move to build a new crossover is good timing for the company.

"Sometimes carmakers are out of sync with the market," he said, "but Honda seems to be in sync with consumers and the current market."

While overall sales this year have remained dismal, Honda has increased its market share in the United States from 11 percent in September 2008 to 11.3 percent this year in September, according to Autodata.

"We're not buying market share; we're earning it," Mendel said.

Nerad said Honda's reputation for fuel-efficient vehicles and excellent resale value has helped push customers to the brand, especially during tough economic times. Additionally, the Crosstour fits well into its lineup as consumers look for more versatile vehicles.

"Certainly the market has come to them," Nerad said. "Let's hope that this is the end of market downturn."

The Crosstour will come with Honda's Variable Cylinder Management 3.5-liter V-6, which can turn off two or three cylinders while driving. Honda has made the engine even more efficient and will carry the Crosstour to up to 27 miles on the highway, besting the V-6 Venza by 1 mpg. However, the Venza, which offers a four or six-cylinder engine, starts nearly $1,500 less than a comparably equipped Crosstour and $3,000 less for a four-cylinder base model.

"The price difference is not a big spread," Nerad said. "It shouldn't be a major issue."

sburgess@detnews.com (313) 223-3217