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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."

Honda claims another injury from Takata airbag failure

Honda has confirmed another injury caused by a faulty Takata airbag inflator in one of its vehicles. The incident occurred on March 20 in Florida to the driver of a 2003 Honda Civic, and according to Reuters, police and hospital reports indicated that shrapnel from the ruptured inflator struck the person in the neck. Honda has indicated that the owner was notified about the airbag at least four times – three of those for the driver's side. The mailings dated back as far as September 29, 2014, and as late as March 23, 2015, which was three days after the crash. The vehicle was eligible to receive new inflators on both sides. In March, Honda issued a high-profile warning to owners in newspapers and on the radio to get their cars fixed. The automaker also broadened its recall during the month to include 100,000 more vehicles, which brought the US total to around 5.5 million. So far, the faulty inflators have been linked to at least six deaths and 139 injuries. In one case, a woman in Florida has filed a lawsuit alleging that she became a quadriplegic when a piece of shrapnel in a 2001 Civic struck her in the neck, and an incident in Texas reportedly caused a man's death. Related Video: Statement from American Honda Motor Co., Inc. Re: Confirmed Rupture of Takata Airbag Inflator in Florida April 13, 2015 American Honda has confirmed that the Takata driver's airbag inflator ruptured in the crash of a 2003 Honda Civic on March 20, 2015 in Florida. This crash resulted in an injury to the driver of the vehicle. Our thoughts and sympathies are with the driver and his family during this difficult time. The legal representative of the owner involved in this incident has acknowledged in comments to media that a March 23, 2015 mailed notification was received by the owner. However, multiple mailed notices previously went to the same address, and none of these notices were returned as undeliverable. The vehicle involved in this crash is included in a recall affecting the passenger's front airbag inflator (14V-700) and a safety improvement campaign affecting the driver's front airbag inflator (14V-351), and our records indicate that neither of the necessary repairs was ever completed. American Honda has sent one mailed notice related to the passenger front inflator and three mailed notices related to the driver front inflator, the earliest of which was sent on 9/29/2014.

US Congress lets $8,000 hydrogen vehicle tax credit expire

When Toyota introduced the 2016 Mirai last month in preparation for a launch late next year, it said that the hydrogen car will have a $57,500 MSRP and that there will be a federal tax credit available worth up to $8,000. The problem, as we noted at the time, is that that federal credit was set to expire at the end of 2014. The technical language of the current rule says that someone who buys a fuel cell vehicle, "may claim a credit for the certified amount for a fuel cell vehicle if it is placed in service by the taxpayer after Dec. 31, 2005, and is purchased on or before Dec. 31, 2014." With the 113th Congress now finished up for the year and legislators headed home for the holidays, we know one thing for certain: the federal tax credit for hydrogen vehicles was not updated and will end as we're all singing Auld Lang Syne next week. All of this isn't to say that Mirai buyers won't be able to take $8,000 off the price of the car 12 months from now. For proof of that, we only need to look at other alternative fuel tax incentives and realize that this Congress simply isn't moving fast enough to deal with things that are expiring right now. One of the last things that the 113th Congress did in December was to take up the tax credits that expired at the end of 2013 and renew some of them. Jay Friedland, Plug In America's senior policy advisor, told AutoblogGreen that PIA and other likeminded organizations worked with Congress to extended the electronic vehicle charging station (technically: EVSE) tax credit that was part of the Alternative Refueling Tax Credit in IRS Section 30(C) through the end of 2014. "Individuals can deduct 30 percent of the cost of purchasing and installing an EVSE up to $1,000; businesses, 30 percent up to $30,000," he said. "This tax credit is applied to any system placed into service by 12/31/14 and is retroactive to the beginning of the year. So go out and buy your favorite EV driver an EVSE for the holidays," he said. An electric motorcycle credit was killed at the last minute as Congress was getting ready to leave, but H.R. 5771 did extend the Alternative Fuels Excise Tax Credits for liquefied hydrogen and other alternative fuels. These sorts of tax credit battles happen all year long. In July, Blumenthal introduced the Fuel Cell and Hydrogen Infrastructure Act of 2014, which never got out of the Finance Committee. Back to the hydrogen vehicle situation.