With makeover of luxury Acura, Honda aims for brand survival, China revival

Beijing

AS PART of a broader makeover, and even the survival, of its stalled luxury Acura brand, Japan's Honda Motor Co will launch a new small crossover sport utility vehicle this year in China to compete with BMW and Audi in the world's biggest car market, two individuals closely involved in the effort said.

Reviving Acura is one of the biggest challenges facing Takahiro Hachigo, who took over as Honda CEO last year. The brand has struggled to carve out a clear identity as a sporty, high-performance luxury label.

Since entering China a decade ago, Acura has struggled, selling just over 4,000 cars last year compared to BMW's 460,000 and Audi's 554,000. And in the United States, where Acura debuted three decades ago, sales have failed to top the 201,000 cars it…