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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.

Toyota's refreshed Sai is a Lexus HS by any other name

Toyota first launched Lexus in the United States back in 1989, but it wasn't until 2005 that it brought the luxury marque home to roost. But don't think that Toyota didn't find a way of selling many of its premium models in the Japanese Domestic Market in the meantime. The Lexus LS was sold as the Toyota Celsion, the ES as the Vista and Camry Prominent, and the SC as the Soarer. (We could go on, but you get the point.)
These days Lexus sells in markets around the world, including Japan, but Toyota still spins off its own versions of Lexus models to sell domestically as well. Like the new Sai, for example. Sharing its platform, hybrid propulsion and much more with the Lexus HS (which you may remember as the world's first dedicated luxury hybrid until it was pulled from the market early last year), the Sai was introduced to Japan at the same time as the HS was rolled out around the world. Now nearly four years on the market, Toyota has given it a bit of a refresh.
Boasting a far more aggressive front end and a restyled rear, the revised Sai features LED headlights, 16-inch alloys and a higher-quality interior in which JDM buyers will find a new center console and trim, along with an optional 10-speaker infotainment system. Toyota also boasts that the new Sai is made of 20-percent Ecological Plastic and recycled resin.

Japanese spark plug giant NGK pleads guilty to price fixing, to pay $52M fine

The ongoing investigation by the Department of Justice into price fixing in the automotive industry has nabbed one more company breaking the law. Japanese parts giant NGK Spark Plug Company agreed to plead guilty to a felony count of pricing fixing and bid rigging in the in the US District Court in Detroit. Its punishment is a $52.1 million criminal fine and to continue to cooperate with the DOJ's sleuthing into the problem.
According to the DOJ, NGK conspired to fix prices on spark plugs, standard oxygen sensors, and air fuel ratio sensors on vehicles from major automakers in the US, including the former DaimlerChrysler, Honda and Toyota, in a scheme that ran from at least January 2000 to July 2011. The charge claimed that the company and its co-conspirators held meetings where they agreed on bids and price quotes that were submitted to the automakers.
With the latest plea, the DOJ has caught 28 companies and 26 executives for price-fixing and bid rigging in the auto parts industry, and they have collected $2.4 billion in criminal fines. In 2013, the feds brought nine Japanese suppliers down at once, to collect $740 million. Scroll down to read the DOJ's complete announcement of the case.