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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."

Toyota, Honda, Nissan and more collaborating to increase fuel efficiency

Toyota, Honda, Mazda, Nissan, Subaru, Mitsubishi, Suzuki and Daihatsu have announced an alliance that will see a push to improve fuel economy from both gas-powered and diesel-powered engines by as much as 30 percent before the end of the decade.
The newly assembled Research Association of Automotive Internal Combustion Engines put the roughly $20-million project together, with the Japanese government committing to half the cost while the eight manufacturers will chip in the rest.
According to Automotive News, the automakers will team up and share basic research on internal-combustion engines in a bid to cut costs. Eventually, the results of the research will find its way into a production vehicle, although it's unclear just when we'll see the fruits of this partnership on the road.

Toyota Tells Dealers To Stop Selling Six Models

Toyota has told North American dealers to stop selling six popular models with heated seats because the fabric doesn't meet flammability standards. One soft material beneath the seat covers does not comply with U.S. safety standards, company spokesman John Hanson said. No fires or injuries have been reported, but Toyota can't legally sell cars that don't comply with U.S. safety codes, Hanson said. The company is still totaling how many vehicles are affected, but it will be in the thousands, according to the spokesman. The stop-sale order could mean trouble for Toyota and its dealers because it covers the company's top-selling vehicles. Dealers can no longer sell certain Camry, Avalon, Sienna and Tacoma models from the 2013 and 2014 model years, as well as Corollas and Tundras from 2014. The Camry, for instance, is the top-selling car in the U.S. with more than 408,000 sales last year. It depends on how long the repairs will take. Hanson said the company already has a new material that's being installed at factories and will be put in cars that are on dealer lots. "We don't think it will take long to get the parts and make the changes," Hanson said, without getting more specific. As for vehicles already on the road, Hanson says Toyota has reported the problem to the U.S. National Highway Traffic Safety Administration, which will decide if the sold vehicles should be recalled. A NHTSA spokesman said he would check into the matter. "We don't believe that there is a safety issue here because there have been no reports of any problems," Hanson said. The stop-sale order affects cars and trucks distributed to dealers in the U.S., Canada and Mexico. In addition, some vehicles were exported outside North America, Hanson said. The problem was discovered by safety regulators in South Korea, who disassembled seats and tested individual fabrics, Hanson said. U.S. safety standards require fabrics to resist flames at a certain rate, but the one fabric didn't meet the standard, Hanson said. Toyota spokesman Naoki Sumino in Japan said the affected vehicles were sold since August of 2012, when the fabric supplier was changed. Toyota has been struggling to regain its once sterling reputation for quality after announcing massive recalls over several years, starting in 2009, for a variety of defects including braking, accelerators and floor mats. The company was fined for being slow on recalls, which affected more than 14 million vehicles, and faces lawsuits.