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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.

Subaru teasing new WRX S4 model ahead of Japanese debut

The Subaru WRX range is growing just a little bit larger, at least in Japan, with the automaker's teasing announcement of a new version called the S4. Unfortunately, the company is keeping details about its latest all-wheel drive sport sedan a closely guarded secret for the moment.
From what we can glean, it appears that the S4 might be a more luxurious take on the WRX. According to the release, the name stands for the four qualities that Subaru wants the sedan to have: "'Sports performance', 'Safety performance', 'Smart driving' and 'Sophisticated feel.'" As part of this focus, the car comes with the company's EyeSight camera system. Thankfully, we don't have too long to wait to find out what all of the buzz words actually mean because Subaru is unveiling the S4 on August 25 in Japan.
The automaker also launched a teaser website for the S4 that you can cheek out, here, but at the moment it doesn't provide any more details about the new sport sedan. The site just has countdown until the August reveal. There's also no indication yet whether this potentially more premium WRX could make it US shores. Scroll down to read the Subaru's rather concise teaser for the upcoming S4.

Subaru WRX STI vs. Audi S3 in compact AWD dustup

It's not every day that a Subaru and an Audi can be reasonably compared head-to-head; the two brands tend not to compete directly in their respective segments. However, the latest WRX STI and the S3 Sedan offer the perfect chance to find out if the working-class Scooby can beat its upper-crust competitor.
The UK's Auto Express gets behind the wheel of these two all-wheel drive performance sedans, or saloons as the Brits call them. Across the pond, both of them are rated at an identical 296 horsepower, but the Subaru edges out the Four Rings on torque. Like in the US, British buyers have to pay a little more to get the Audi, but it comes with a nicer interior and more brand cachet, if that means anything to you.
The video starts out with a fairly standard road test comparing the two of them back-to-back - all fairly subjective. But then Auto Express takes the trip to the drag strip, and the results there are much more conclusive. There's a definite winner when they cross the line, but you have to scroll down to see which of these turbocharged models with rallying heritage wins out.