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How new car shortages may impact your buying experience

If you want further proof that the auto industry is bouncing back, look no further than the empty lots and forecourts of your local dealership. According to a story by The Wall Street Journal, continued high demand for mainstream cars is overtaxing automakers' ability to produce enough models. Several dealers interviewed for the story are reporting two-week supplies as opposed to the typical two-month allocations.
With sales expected to hit 1.4 million units when August numbers arrive shortly and incentive spending down to its lowest amount since January, these limited supplies are pushing prices even higher. For example, according to the WSJ, the average price of a Ford Fusion is up past $26,000. Unfortunately, it's difficult for manufacturers to increase production quickly. If it invests in its facilities, as many manufacturers have done, it risks wasting cash if growth suddenly slows. At the same time, the momentum gained over the past several years could be short lived if vehicle supplies continue to dwindle. "Manufacturers are in a precarious situation," notes Karl Brauer, a senior director at Kelley Blue Book.
Low interest rates and a wealth of desirable features are also allowing customers to purchase more expensive vehicles while justifying their higher overall price tags, a situation that is compounding supply shortages. Even now, during the annual end-of-summer clearance season, deals on new vehicles are remarkably difficult to come by. According to the report, the Toyota Corolla is in a self-inflicted state of shortage, as Toyota clears out inventory in anticipation of the new 2014 generation arriving in dealers. Ford's supplies should rebound as Fusion production comes on line at its Flat Rock, Michigan factory. The Chevrolet Impala, Honda Odyssey, Civic, and Accord and Subaru Forester are also facing shortages.

2015 Civic Type R will make 'at least' 276 hp from 2.0L turbo [w/video]

Honda may not actually be showing off the production form of its upcoming Euro-only 2015 Civic Type R at the Frankfurt Motor Show this year, but it did take advantage of the focused media attention to make a pretty cool announcement. In addition to dropping a really hot video of the new Type R testing at the Nürburgring Nordschleife, Honda Europe president, Manabu Nishimae, gifted us with some juicy details about the coming hot hatch.
Nishimae confirmed rumors that this Type R would make use of a turbocharged 2.0-liter engine, while telling us that the mill would be good for an output of "at least 280 PS." A raw conversion from PS (metric horsepower) to standard horsepower gives us a figure of about 276 hp, or very near the rumored figure of 300 galloping, front-wheeled ponies.
The company will need each ounce of output from its new 2.0-liter engine if it is to meet its stated performance target: making the Civic Type R the fastest front-wheel-drive production car around the 'Ring. Apparently this last session of testing, with World Touring Car Championship driver Gabriele Tarquini at the wheel, has already gotten Honda close to the lap record. Scroll down to read Honda's brief press release about the upcoming Type R, and, more importantly, to listen to the car as it's throttled around the track.

Ford F-150 bumps Camry from top of Cars.com American Made Index

With July 4th just around the corner, what better time could there be for Cars.com to announce that the Ford F-150 is the Most American car of 2013? This may be especially true since it was the Toyota Camry, a car produced by a company based in Japan, that had held the top spot from 2009 to 2012.
Cars.com compiles its Most American list by considering the amount of parts each vehicle uses that come from America, where it's final assembly takes place and how many units per year are sold. "While the assembly point and domestic parts content of the F-150 didn't change from 2012-2013, vehicle sales are responsible for bumping the F-150 to the top spot," according to Patrick Olsen, Editor-in-Chief of Cars.com.
As far as automakers go (as opposed to individual models), Toyota retains the top spot it held in 2012, with General Motors, Chrysler, Ford and Honda (in that order) rounding out the list. The motivation behind this list each year, according to Olsen, is "to help car shoppers understand that 'American-Made' extends beyond just the Detroit three" and because "a study we conducted in 2012 indicated that 25 percent of shoppers surveyed preferred to buy American."