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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."

2017 Kia Sportage hits LA in US spec

Kia gave us our first look at the all-new Sportage back in August ahead of its global debut at the Frankfurt Motor Show. But with the LA Auto Show opening this week, the Korean automaker has now released the full details on its new compact crossover. The 2017 Kia Sportage represents a ground-up redesign of the model, adopting a more rounded look compared to the crossover it replaces. The tiger-nose grille makes it instantly recognizable as a Kia. And though it clearly takes a different design approach, its upright quirkiness (to our eyes) makes it a more suitable bridge between (and distinct stablemate to) the unconventional Soul and the larger Sorento. Now entering its fourth iteration, the new Sportage stretches 1.6 inches longer than its predecessor and rides on a 1.2-inch longer wheelbase, but maintains the same width. That means a more spacious cabin for both occupants and cargo, done up with more upscale materials and with the latest technologies buyers have come to expect. The increased use of high-strength steel helps optimize rigidity and weight in the latest iteration of Kia's longest-running nameplate, helping it launch a more concerted assault on the increasingly competitive compact crossover market. Buyers will be able to choose between three trim levels, labeled LX, EX, and SX Turbo. The first two derive their power from a 2.4-liter four good for 181 horsepower and 175 pound-feet of torque, while the latter steps up to a 2.0-liter turbo kicking out a more prodigious 241 hp and 260 lb-ft. Both promise improved efficiency, and can be had in front- or all-wheel drive, but either way they transmit their power to the road through a six-speed automatic transmission. Pricing for each model is set to be announced closer to their arrival in showrooms sometime in the new year.

Kia calls reports of second US plant 'groundless'

In discussing how Kia planned to use a focus on quality to raise its brand perception and take the fight to BMW and Audi instead of Toyota, a recent article in Automotive News Europe said one of the primary constraints was production capacity; Kia simply doesn't have the ability to make enough cars to meet its aims with the plants it has.
The CEO of Hyundai-Kia is said to be reluctant to build more plants because of that focus on quality and the fact that its suppliers are stretched to the limit. The effects of that position are being felt right now with both makers losing market share, as in the case of Hyundai not being able to make enough of its Veloster Turbo for the US market.
A South Korean newspaper apparently reported last week that Kia was planning to build a second factory in Georgia with capacity for up to 150,000 units annually, and that the company would break ground as soon as this month on "KMMG2." Kia has responded to the news by saying, "The report is all groundless." The mayor of West Point, site of the current KMMG plant, said he didn't know anything about such plans, nor did the Georgia department of economic development have knowledge of a new Kia factory.