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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.

eBay Find of the Day: 1985 Honda City Turbo II is JDM forbidden fruit you can own

It's always fun to cruise different global eBay Motors sites and check out the cars that we never got here. Thankfully, America's 25-year import limit on cars means that some of the rarities from the 80s are finally legal on these shores. This 1985 Honda City Turbo II is a great example of a fun, little car that we never got new but can be made legal here now.
The City was basically the Japanese company's '80s equivalent of today's Fit, albeit significantly smaller. The little urban runabout was so popular in its basic form that Honda decided to take things up a notch and turbocharge it. That car sold enough to warrant an even higher performance version called the Turbo II, which added an intercooler and the flared fenders you see here. The latter helped it earn the nickname "bulldog" for its boxy, aggressive appearance.
Honda claimed at the time that its little 1.2-liter, turbocharged four-cylinder produced 109 horsepower and 118 pound-feet of torque with a five-speed manual. In a car that weight just 1,620 pounds, you can imagine it was a very entertaining little package.

Honda signs on as Pikes Peak sponsor, race participant

Honda plans to storm the Pikes Peak International Hill Climb on June 30, entering ten cars in nine classes at the race to the sky, and signing on as a corporate sponsor. Part of the company's return to grassroots racing - if that's what you can call factory-backed efforts - the banners of Honda R&D and Honda North America will fly on these entries: a first-gen Acura NSX, an Acura TL SH-AWD, Honda CR-Z, Honda Fit EV, one CRF450R and two CRF250R motorcycles, a CBR1000RR motorcycle and a TRX450 ATV.
One more entry, details of which are to be announced later, will be driven by IndyCar pilot Simon Pagenaud of Schmidt Hamilton HP Motorsports. LoveFab (pictured above during practice last year) will be there with its new, NSX-based Enviate, but as a privateer entry.
Honda's been to the mountain before, with high-powered gear in 2012 and record-setting EVs in 1994 and 1999, but it's never made noise like this. Have a read of the press release below for more info.