2005 Subaru Forester 2.5 Xs L.l.bean Edition Awd 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.

2015 Subaru Legacy

Subaru has a problem on its six-starred hands, but you wouldn't know it at first glance. Sales are up; in fact, the Japanese automaker has recorded 28-straight months of increased sales in the United States, leading to the best first-quarter Subaru has ever recorded, and 2014 will almost assuredly be the seventh straight year it has posted improvements. So, what's wrong? The answer is simple, though clearly complicated to resolve. Sedans - specifically, midsize examples - have proven a tough nut for Subaru to crack.
The vast majority of those impressive sales statistics have come from just a few models, namely the Forester, Outback and XV Crosstrek. The Impreza continues to sell at a respectable pace, but it's telling that the XV, after just three years on the market, is already Subaru's third-best-selling nameplate, outpacing the aforementioned Impreza (on which it's based), its high-performance WRX sibling and the Legacy, which is now entering its sixth generation, having been first introduced way back in 1989. It's that last model we're examining today.
Despite the fact that the Legacy plays in a hotly contested market segment that includes such stalwart sales champions as the Toyota Camry, Honda Accord, Ford Fusion and Nissan Altima, Subaru's competitor registers as a barely visible blip on the radars of new-car buyers. Graphically illustrated another way, Toyota sells 17 Camry sedans for every new Legacy that Subaru moves.

Should Subaru stay niche or go mainstream? [w/poll]

Out of all the automakers doing business in the US, Subaru is the one that has carved out the most interesting niche for itself in the minds and lifestyles of buyers. Outdoorsy types, dog lovers and active families alike flock to Subaru's rugged nature and all-wheel-drive utility - and they're fiercely loyal, which is probably why Subaru has become a success story.
But Subaru is still a relatively small player in the US market, and with recent profits surging, parent company Fuji Heavy Industries is facing a dilemma: continue on with the successful niche market Subaru has carved out for itself, or attempt to go mainstream and give big players like Nissan and Toyota a run for their money. According to Carscoop, Japan Times and Bloomberg News are reporting that Fuji Heavy is beginning discussions this month to determine which direction Subaru will take.