Recent sales success has Acura riding high right now. Honda's luxury division sold nearly 210,000 vehicles in 2005, topping its previous record of nearly 199,000 set in 2004.

With 2006 shaping up to be another record-setting year, Acura is looking to further expand the brand. It is launching a new compact SUV--RDX--that Acura hopes will retain existing customers as well as bring new buyers into showrooms.

Acura in a Nutshell
Acura is to Honda what Lexus is to Toyota and Infiniti is to Nissan. But Honda's luxury brand was the first of the three to sell vehicles in the U.S. It started in 1986 with the midsize Legend sedan and compact Integra coupe and sedan.

While RDX in concept form (top) was introduced at the Detroit auto show, the production version (bottom) is set to go on sale in the summer of 2006.

The high-performance NSX, what many consider to be Japan's first legitimate challenger to established German and Italian supercar nameplates, followed. After Acura hit a sales slump in the mid '90s, it revived itself by adding products and switching to an alpha-numeric model designation. Cars like the 3.2 TL and the midsize MDX SUV drove an increasing number of buyers to Acura showrooms.

The current compact TSX and midsize TL sedans are Acura's bread and butter models, accounting for more than half of the brand's total sales. It's with good reason, too. Both models are Consumer Guide (r) Best Buy choices for their fun-to-drive characters, solid workmanship, and use of cutting-edge technology (like DVD audio and voice-activated navigation).

Blazing Urban Trails
While TSX and TL continue to fly off lots, Acura found it had a problem keeping existing customers with the brand. Officials said that owners of these cars wanted to move to an SUV but didn't need the size or expense of MDX. Thus, RDX was born. Shown in concept form for several years, RDX is scheduled to arrive in showrooms in June of 2006.

In bringing RDX to market, Acura set it sights on young professionals who live in urban environments. The automaker performed research in several major cities and defined RDX's potential customers as "Neo-Urban." Officials said these buyers are young, adventurous, technologically savvy, and live a 24/7 lifestyle. Vehicles for these people have to be able to navigate the urban jungle, but at the same time, offer enough space to take a couple mountain bikes on a weekend trip. To Acura, it's all about doing big things in limited spaces.

This new compact SUV rides on a platform that is currently not shared with any other Acura or Honda product. Speculation abounds that RDX's chassis will form the basis of the next-generation Honda CR-V, but officials remain tight-lipped on this matter. RDX also is the first application of a turbocharged engine in any Honda sold in North America.

Top: Acura RDX concept interior. Bottom: the 2007 Acura RDX interior.

It's a 2.3-liter 4-cylinder that produces 240 horsepower, and shares only a few basic components with the TSX's 4-cylinder. Low-speed response is the focus of this powerplant. The idea is to ensure that the vehicle can cope with congested urban streets without suffering from the turbo lag (a delay in throttle response) that can plague similar types of engines.

The turbo 4-cylinder teams with a 5-speed automatic transmission that has buttons on the steering wheel for manual operation. The buttons can be used without having to move the console shift lever to a special gear. A sensor will set the transmission back to fully automatic mode if it detects no driver input after a period of time.

The engine and transmission put power to the pavement via Acura's Super Handling All-Wheel Drive (SH-AWD). This system is a mechanically simplified version of the one used in the company's flagship RL sedan, and works in a similar manner. Under normal conditions, about 90 percent of the engine's power gets distributed to the front wheels. As road conditions change, up to 70 percent of the power can shift to the rear wheels. The "Super Handling" portion of the system can direct up to 100 percent of available power to the right or left rear wheel.

Audio-, Techno-philes Rejoice
Acura says target buyers are hip to what's new in the ever-changing world of technology, while at the same time expect luxury touches one would demand from a luxury marque. Leather upholstery and heated front seats are standard, as is dual-zone automatic climate control. A 6.5-inch dashboard screen displays audio and climate information. The standard audio system has seven speakers, a six-disc in-dash CD changer, satellite radio, and an MP3 player input jack.

If that's not enough, RDX is available with a Technology Package. The dashboard screen incorporates a navigation system with real-time traffic information for 30 major cities. The technology package's audio system gets 10 speakers with DVD Audio capability. Also included is a wireless cell phone link and AcuraLink service that includes remote vehicle diagnostics.

Acura is setting RDX (left) up to compete with BMW's X3 (right), but not with X3's $37,000 base price.

Blazing a New Market Trail?
In designing RDX, Acura targeted BMW's X3 compact SUV, but not the competitor's base sticker price of nearly $37,000. Acura officials said their target price range is $30,000-$37,000.

These two SUVs are the first of what will likely be an influx of similar models from other manufacturers. Compact SUVs from other premium brands like Lexus and Saab are rumored.

It remains to be seen if buyers are willing to pay in excess of $30,000 for a compact SUV. Acura seems to think so as their projections have the so-called "Entry Premium CUV (Crossover Utility Vehicle)" selling at a rate of nearly 400,000 annually by 2011. If this proves to be true, RDX's targeted annual sales of 40,000 may seem a bit modest, especially since it looks like Acura will get a head start on the competitio