SA: Honda tips sales lift

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SA: Honda tips sales lift

By Tim Dornin, National Motoring Correspondent

ADELAIDE, April 2 AAP - Honda Australia has vowed to defy any impact from the war againstIraq, the lingering drought or any dip in consumer confidence to post an increase in salesthis year.

Director Lindsay Smalley said total industry demand was forecast to reach 825,000 vehiclesin 2003, although that would depend on world events.

But he said Honda would lift demand for its products to about 28,000 units, "no matterwhat", an increase of about 18 per cent.

Mr Smalley's comments came as Honda launched its new luxury four-wheel drive, the MDX.

The new V-6 powered off-roader will compete against similar models from BMW, MercedesBenz, Volvo, Volkswagen and Lexus.

But it will sell for $69,990, considerably less than some of those rivals.

Mr Smalley said Honda believed the MDX would provide a genuine alternative for thosecustomers who demanded more than just a badge.

"We believe the MDX is the right package to establish Honda as a leading player inthe luxury sport utility segment," he said.

Powered by a 3.5 litre engine producing 191 kilowatts, a key feature of the MDX isits four-wheel drive system dubbed VTM-4.

It uses a pair of clutches in the rear differential that maintain traction by distributingpower to the rear wheels.

Under cruise conditions the car is driven by its front wheels but when demand requiresit provides drive to the rear wheels as well.

But Honda said unlike some systems which rely on front wheel slip being detected beforethe rear wheels are locked in, the VTM-4 can anticipate when wheel slip will occur bycalculating torque demand.

Inside the MDX has seven seats with leather trim, front and side airbags and synchronisedfront and rear climate control.

Honda's product planning manager Justin Orr said the MDX would attract well-educatedmale and female buyers in their mid 30s to 60s who were married and enjoyed a family-orientedlifestyle.

Honda expects to sell about 160 of the cars each month or about 2,000 in a full year.

AAP tjd/cjh

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