2012 Subaru Impreza Wrx Premium on 2040-cars

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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.

Comedic Hasselhoff car ad leads to a dream job in Sweden

Last month a guy in Florida posted a homemade ad for his 1996 Nissan Maxima online and Nissan bought it from him. This month a guy in Sweden posted a homemade ad for his 1985 Subaru Justy J10 Trendy online and got a job with Swedish car magazine Auto Motor und Sport. When Nils Jangan relocated to a new city and couldn't get a job, the financial drain eventually demanded he get rid of his car. Looking for a way to convince anyone to purchase a 29-year-old hatchback, he enlisted the help of Mordor, Saruman and, naturally, David Hasselhoff giving the thumbs up.
The picture was accompanied by text describing the "Japanese mountain goat" that was "hand-forged" by "the Saruman of carmakers," and its "54 frighteningly well-hung horses." One of its other advertised features was "I.D.N.R.I.S" seat belts, the "Instant Death No Retardation Impact System" meaning the occupants would never have to worry about long-term care if they were "in any collision at speeds higher than 12 km/hour." He asked 10,000 kroner (about $1,500 US) for the beauty, but he was also willing to trade for a job.
After posting the ad on Blocket, a Swedish craigslist, and having it shared throughout the community, Jangan got a ton of interest in the car and a job offer from Auto Motor und Sport, which he accepted. As for the Subie, it ended up going to a local repair shop for just a few hundred kroner, but we imagine Jangan's gets a decent work-related loaner or two to make up for it.

Subaru investing $400 million for Impreza production in Indiana

As a part of a goal to increase its US sales tally up to 500,000 annual units by the end of the decade, Subaru is investing $400 million in its Lafayette, IN assembly plant in order to start building the Impreza in 2016. According to Automotive News, about half of that investment will be for a new paint plant while another big chunk will be used to extend the assembly line to allow for the increased capacity.
Currently, Subaru's Lafayette plant is responsible for building about 200,000 Legacy, Outback and Tribeca models each year (not including around 100,000 Toyota Camry sedans), but Subaru-specific output will be increased to 300,000 units, requiring an additional 900 new hires as well. Although a previous report suggested the Forester and Impreza would be moving Stateside, this AN article only mentions the hatchback and sedan versions of the Impreza being added to Lafayette - and no mention of the closely related XV Crosstrek.