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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.

Is the Subaru BRZ STI being teased really only a tS version?

Teaser images of a purported Subaru BRZ STI were uncovered last night and sent the internet into a collective state of hysterics. That's not hugely surprising, though, considering the reverence that the BRZ, along with its fraternal twins, the Scion FR-S and Toyota GT86, have garnered from the automotive media. The sole sticking point, really, has been its mere 200 horsepower. People have been chomping at the bit over a higher output version of the sublime rear driver.
Those same people may be in for a disappointment, though. See, the BRZ STI that was teased last night might not be a real STI. Instead, it's looking like it might be a BRZ tS. According to 7Tune.com, the timing of the photos posted on Subaru's website lined up with Subaru's 86 Festival at Fuji Speedway, where the Subaru BRZ tS debuted. Despite wearing STI badges, the tS isn't the full-tilt STI model we've been hoping for. Instead, you can think of the relationship between tS models and STI models as sort of like the difference between a BMW 3 Series M Sport and a BMW M3.
Certainly, the speccing of the tS supports that idea. The engine of the BRZ remains untouched in both tS models, which is one of the primary things we expect a full-bore STI to address. A number of interior and exterior styling items have been added, along with Bilstein suspension pieces and six-pot Brembo brakes. The tS sports two different trim levels, with the higher end using Recaro seats, black alloy wheels, and a carbon-fiber rear spoiler. The base tS features silver wheels, standard seats, and all the same suspension and brake upgrades. Adding fuel to the fire that these are not the true STI models is the limited production run - Subaru will only build 750 tS cars.

Subaru recalls more cars, slashes guidance as cheating issue widens

By Naomi Tajitsu TOKYO — Subaru Corp said it would recall more vehicles sold in the Japan domestic market on new cases of inspection cheating, and cautioned that rising recall costs would lop off about a quarter from its annual profit forecast. Shares in Subaru, already reeling from a series of recalls for issues ranging from faulty components to inspection do-overs, fell 5 percent to a four-year low on Monday after news of the fresh recalls and the bleak outlook. The company, the smallest among Japan's major automakers, said it would recall around 100,000 vehicles, including its popular Impreza sedan, after discovering that final tests for components including brakes were not conducted properly. Vehicles sold overseas will not be affected. "It's unforgivable that these inspection-related issues are continuing," CEO Tomomi Nakamura said at a briefing, while repeatedly adding that the latest recall would be the last related to testing misconduct. The automaker expects to incur 6.5 billion yen ($57 million) in costs related to the latest recall. This, along with other quality-linked issues, is expected to push down Subaru's operating profit to 220 billion yen in the year to March 2019. It had previously forecast a 300 billion yen profit. Subaru posted a surprise operating loss of 25 billion yen for the three months ended September, its first time in the red for a quarter since 2009 and missing a mean forecast for a 68.46 billion yen profit from 10 analysts polled by Refinitiv. Recall-related costs were the main driver of the loss, while global sales fell 6 percent over the quarter due to weak demand in the United States — its biggest market, where overall demand has cooled since record-high sales in 2016. (Click here for an interactive version of this chart) Engine recall Last month, Subaru nearly halved its first-half operating profit view, citing higher quality-related costs. It later announced a global recall of around 400,000 vehicles, including its Forester SUV and Impreza sedan, to fix a design flaw in the engines' valve springs. That came on the heels of another series of recalls stemming from revelations last year that uncertified workers had been submitting final inspection reports for vehicles sold in Japan. That had also led to a recall of about 400,000 cars. Recalls are common in the auto industry, and automakers regularly put funds aside to pay for them.