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Sales incentive growth clustered around brands with few CUVs, trucks

While it's arguably been around the longest, the dominance of the four-door sedan has been under threat for many years. As a further sign of the hurtin' that SUVs and crossovers have put on today's four-doors, a new report from Automotive News points to the increasing use of incentives by brands reliant on cars and light on CUVs and pickups.
Honda, Toyota, Volkswagen and Kia have all been stung by double-digit increases in their incentives-to-transaction price ratio, according to AN, which cites data from TrueCar. Honda's ratio is up 14 percent, while Toyota, VW and Kia are up 18, 15 and 19 percent, respectively.
"Most of the incentive growth we have seen is in product segments with low demand - midsized or large sedans," TrueCar CEO John Krafcik told AN. "As this trend goes on, the brands with three-sedan strategies are going to be in worse shape on incentive spending than the crossover brands."

Hyundai/Kia's Prius rival to arrive by 2017

The Toyota Prius is the undisputed king of the hybrid market, but Hyundai and Kia are hoping to challenge its reign in the coming years with their own dedicated model. However, in all likelihood this is the same technology being shared between them. "We will take the lead in the future by raising the competitiveness of our environment-friendly cars like hybrid-only cars, plug-in hybrid cars and fuel cell hydrogen cars," Hyundai Motor CEO Kim Choong-ho said to Reuters, during the launch of another vehicle in South Korea.
While Kim didn't say when the model would be ready, Autocar in Europe spoke to people at Kia, who said that the company's own hybrid was two years away and codenamed the DE. The initial vehicle is reportedly a five-door hatchback that's about 169-inches long, with more conventional styling than the Prius. Its powertrain is reportedly based around a 1.6-liter engine with electric assist. A plug-in version might follow later, and other bodystyles on the platform are possible. A recently spotted test mule might show the current state of development on the project (pictured above).
According to Reuters, the decision for the new vehicle comes in order to meet tighter emissions in some markets. However, it seems like a challenging move for the US market. Hyundai already sells its Tucson fuel cell in limited quantities and the Sonata hybrid, and Kia has the Optima hybrid and Soul EV. Industry analysts are also predicting that hybrids might have a hard time versus internal combustion engines in the coming years. In addition, Toyota is rumored to get fuel economy close to 60 miles per gallon for some versions of the next Prius. All of these factors make selling the models here a potentially difficult undertaking.

Hyundai and Kia introduce new predictive transmission tech

Hyundai and Kia have announced that the two have developed a new transmission control system that optimizes shift logic to both improve efficiency and reduce "gear hunting." The system utilizes real-time traffic data, built-in 3D navigation and the same sensors that feed the cars' advanced safety and driver assist tech to proactively choose the right gear — even neutral in some cases — to reduce both fuel consumption and wear-and-tear. The Korean sister brands call it the "Information Communication Technology Connected Shift System," or "ICT" for short, and Hyundai says it delivers not just improved frugality, but a better all-around driving experience. ICT programming allows the transmission control unit to collect and interpret traffic, camera, sensor, navigation route, elevation and topographical data.  "Using all of these inputs, the TCU predicts the optimal shift scenario for real-time driving situations through an artificial intelligence algorithm and shifts the gears accordingly," the announcement said. "For example, when a relatively long slow down is expected and radar detects no speed irregularities with the car ahead, the transmission clutch temporarily switches to neutral mode to improve fuel efficiency." While this sounds like a primarily green play, there are quality-of-life improvements too. For example, ICT can also optimize gear selection and shift points for safer highway merges, effectively implementing the equivalent of a "Sport Mode" driving profile when a little extra punch is called for.  Hyundai says the resulting decrease in shifts was significant; in some test scenarios, such as roads with lots of curves, the number of shifts executed by the transmission was reduced by almost half. As an added bonus, these vehicles also utilized their brakes less often (11%), which would reduce wear (and accompanying maintenance costs) over time.  ICT is somewhat future-proof, too, as it was developed to incorporate vehicle-to-vehicle (V2V) data should such networks improve down the line.  The announcement did not say when the new tech would reach customers, committing only to introducing the technology "on future vehicles." If we're betting, the smart money says it will probably on a new Genesis model and trickle down from there. Related Video: