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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 Levorg Concept has us dreaming about a WRX wagon

We're not sure what got in the water supply of Subaru's Tokyo Motor Show team, but we like the results. After checking out the Cross Sport Design Concept, which we would love to see as a BRZ shooting brake, Subaru took the wraps off its Levorg Concept. Naming convention aside, the idea of a sport-tuned wagon with a boxer engine is music to our ears.
The design language fits in with recent Subaru products, and the Levorg's face is very similar to the 2015 WRX that was just unveiled across the Pacific Ocean at the LA Auto Show. In terms of its size, though, this concept is roughly the same as the current Outback, only it sits about five inches lower. Power comes from either of a pair of boxer engines: a fuel-efficient 1.6-liter or a 296-horsepower, 2.0-liter. Both engines would be paired to Subaru's Symmetrical all-wheel-drive system.
Subaru says that the Levorg is a thinly veiled version of the production sports tourer that will go on sale (likely in Japan and/or Europe) next spring. Could this mean we could soon see a sporty Legacy wagon in the US? We can only hope. More details about the Levorg are posted in the press release found below.

Subaru's first hybrid drawing close

In 2011 Subaru parent company Fuji Heavy Industries confirmed that a hybrid Subaru would debut this year. Ever since, there's been speculation about what kind of technology the gasoline-electric hybrid would use - Subaru's own or some version of the Toyota Hybrid Synergy Drive, which car would debut the new system - Forester, Legacy, or Outback - and whether it would come to America or be a Japan-only model.
A report in The Detroit Bureau says that whatever that first model is, it could be shown as soon as the New York Auto Show, and while the company feels it's a must-have offering for the Japanese market it will also come to the US. It will have a Subaru-developed mild hybrid system that could have been previewed by the Hybrid Tourer concept shown at the 2009 Tokyo Motor Show, and is not expected to be able to drive on electric power alone. The Hybrid Tourer used a direct-injected, 2.0-liter boxer engine connected to a CVT and assisted by an electric motor rated at 13 horsepower. Subaru has yet to give anything away about the details of its hybrid plans, so we'll look to New York for the long-awaited unveil.