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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."

Kia slices K900 pricing amidst slow sales

Kia is learning the same hard lesson that Volkswagen learned so many years ago – it's not easy for a volume brand to sell a luxury car. The K900 luxury sedan has suffered through slow sales, moving just over 1,300 vehicles last year, and now the South Korean company is trimming the cost of entry to entice consumers. A new K900 Premium lowers the sedan's price by $5,000, from $59,500 to $54,500, not including a $900 destination charge, Motor Authority reports. While the price is lower, previously standard items, such as LED headlights, Nappa leather and a 17-speaker Lexicon stereo have been packaged as part of a new Luxury trim, which will maintain the original starting price. The two-tier scheme will force consumers to make a new decision about their K900, but that won't extend to the brute under the hood. A 5.0-liter V8 remains a standard item, making even the K900 Premium a tempting option for anyone that values straight-line thrust in a comfortable package. What are your thoughts? Is Kia merely rearranging the deck chairs on a sedan-shaped Titanic, or do you think trimming the price will do some good for the slow-selling K900? The new price is already reflected on Kia's consumer website, so head over, mess about and then come back and have your say about the move in Comments.

Kia and CarMax pull LA Clipper sponsorships in wake of alleged Sterling comments

There's fallout across the automotive advertising world today as companies react to alarming, racially insensitive statements alleged to have been made Donald Sterling, owner of the NBA's Los Angeles Clippers franchise. Last Friday, entertainment website TMZ published excerpts from an audio recording, allegedly between Sterling and his girlfriend V. Stiviano, in which the Clippers owner said, among other things, that he didn't want her to bring black people to his games, including LA Lakers legend Magic Johnson. Sterling has yet to respond publicly to the allegations.
The story quickly gained steam over the weekend, and this Monday it has seen Kia Motors, auto sales website CarMax and insurance giant State Farm all pull sponsorship activities with the Clippers.
In a statement Kia said the alleged statements by Sterling were, "offensive and reprehensible," calling them "inconsistent with our views and values." Kia says it is "suspending" its advertising and sponsorship activities with the team, though has yet to clarify if that suspension includes commercials featuring NBA star and Clippers power forward Blake Griffin.