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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 Accord Hybrid falls well short of 47 mpg, says Consumer Reports [w/video]

Do not poke Consumer Reports with the hybrid fuel economy stick. That seems to be the lesson illustrated here yet again. The Honda Accord Hybrid is the latest to arouse the ratings bear, returning "just" 40 combined mpg in CR testing. Even so, that makes it "a class leader for fuel economy among midsized sedans," besting even the Civic Hybrid in CR testing, but that's still a lucky roll of the dice short of its EPA rating of 47 mpg. Remember, it was back in December 2012 that CR knocked the Ford Fusion and C-Max hybrid models for the exact same failing: certified with an EPA-rated 47 mpg but delivering "just" 40 mpg.
Beyond that, while the Accord Hybrid earned a lower overall score than the traditional gasoline Accord because of its ride, handling and refinement issues, it gets unqualified applause from the institute for its "very impressive hybrid system."
It will be interesting to see if CR's findings will negatively impact the model's sales, which to this point have been impressive enough that demand is outstripping supply. In the meantime, you can check out CR's brief video review of the Accord Hybrid below, and check out the magazine's press release chiding its mpg rating.

Honda: We won't be able to sell ICE cars in China by 2025

China's push to clean up the country's woeful air pollution levels could mean the end of the traditional internal combustion engine there. In an interview with WardsAuto, Keiji Ohtsu, Honda's chief technology strategy officer at the company's automobile R&D center, predicts a lineup only of models with electric assistance in the country within a decade. He also discusses the Japanese automaker's green car goals worldwide. Ohtsu foresees China adopting some of the strictest fuel economy standards in the world in the coming years. "In 2025, we don't expect to be able to sell conventional internal-combustion engines [there], meaning we will be selling mostly hybrids including plug-in types," he said to WardsAuto. China's push to clean up its air comes as major cities continue to struggle with massive levels of pollution. For example, Beijing recently banned half of the cars from the road due to dire levels of smog. To fight back, the government has pushed automakers to launch more plug-ins, and the strategy has shown some success. China's BYD has already become the world's largest producer of plug-in vehicles in 2015. Even outside of China, Honda intends to become a far greener automaker in the coming years. In the near term, the company expects 20 percent of its global volume could be hybrids by 2020. According to Ohtsu, as much as 80 percent of Japanese deliveries could have some form or electrification by that time, but the US would be closer to 20 percent. However, the company sees hybrids more as a stepping stone than as the future of motoring, and the mass adoption of hydrogen is the real goal. "We think that fuel-cell vehicles will come into the mainstream in 2030, along with battery-powered electric cars. We also feel that going forward hydrogen will be the best fuel alternative," Ohtsu said to WardsAuto. Honda's experimental FCEV (pictured above) already hints at the brand's future direction.