Filed under: Honda , Kia , Toyota , Volkswagen , Earnings/Financials 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 President 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.” Krafcik backed up his argument with this fun fact: Honda sales were up just two percent in August, compared to Jeep , whose sedan-free fleet saw sales jump 49 percent in the same period. The move towards CUVs isn’t too hard to figure out, with AN pointing out the increasingly fuel-efficient high-riders that are overtaking showrooms. That’s bad news for both sedans and the manufacturers that produce them. UPDATE: A previous version of this story listed John Krafcik as CEO of TrueCar. That is incorrect.
Filed under: Budget , Government/Legal , Hirings/Firings/Layoffs , Hyundai , Lexus , Toyota , Luxury The government shutdown is eroding consumer confidence in the auto market, says John Krafcik, CEO of Hyundai’s US sales unit, and could lower October sales by as much as 10 percent, Automotive News reports . “It’s that anxiety that keeps customers, potential buyers, on the sidelines when making a big purchase like an automobile,” Krafcik says, adding that industry sales could be off by five to 10 percent in October compared to September. The fourth quarter, which started October 1, usually consists of increased auto sales as dealerships clear their lots to make room for the next year’s models. Leading up to the fourth quarter this year, the auto industry was doing well in the fragile, recovering US economy, although September deliveries decreased by 4.2 percent, due in part to this year’s Labor Day sales being recorded for August. To help its customers, Hyundai announced it is deferring new-car loan and lease payments for furloughed federal workers until they’re called back to work and also offering them a three-month payment deferral if they buy a new Hyundai in October. “We have already had requests from over a thousand people to have their payments deferred,” Krafcik says. Toyota and Nissan joined Hyundai as the latest automakers to provide financial relief to customers affected by the federal employee furloughs. Krafcik says US Gov. shutdown is slowing Oct. auto sales originally appeared on Autoblog on Tue, 15 Oct 2013 19:01:00 EST.