2005 Subaru Outback Xt Limited Turbo 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.

Subaru mulling three-row utility, upscale versions of existing models

Subaru was one of few automakers whose sales actually picked up during the recent recession. But now that auto sales are back on track (and expected to hit pre-recession numbers this year), Subaru is trying to come up with new products to fill voids in its current lineup. Wards Auto had a chance to talk to Subaru's director-product manager Ken Lin, who indicated that the automaker is planning to introduce new models this year that will help it attract new buyers without alienating current ones.
The biggest void, of course, is a competitive three-row crossover, a role the Tribeca does not fill in one a very popular segment. Lin said that while there's no current plan to kill off the Tribeca, Subaru is looking at creating a larger three-row CUV with more interior space. In addition to to something big, Subaru is getting ready to bring its customers more luxury with new touring models, but does not anticipate going toe-to-toe with Mercedes-Benz or BMW.
By the end of this year, Subaru will be introducing a new hybrid model, although we don't yet know on which model it will be based. What we do seem to know is that the car will get its power from a nickel metal hydride battery rather than a more modern lithium-ion pack for the sake of simplicity. Finally, Lin mentioned a new product being brought into the sports car segment, but while the article takes this as a hint toward a possible BRZ Turbo, it could also be a reference to the next generation of the WRX and WRX STI.

2015 Subaru XV Crosstrek Special Edition shows its shining face to the Detroit crowd

The 2015 Subaru XV Crosstrek Special Edition is an easy model to spot thanks to its bright Sunrise Yellow paint. However, under the lights at the 2015 Detroit Auto Show, the shade actually looks a bit darker than the blazing tone from the original photos. Subaru is only making 1,000 of these shining models, and appropriately, they hit the market in the spring when the sun starts shining. Beyond the bright paint, buyers get a Crosstrek with a power moonroof, body-color folding mirrors and blackened headlight bezels. Inside, there's Subie's Starlink infotainment system with a seven-inch touchscreen and two USB ports. The all-weather package should make things easier on cold days, too, with heated seats and side mirrors, plus a windshield wiper de-icer. The whole package based around the 2.0i Premium trim rings up for $25,290, plus $850 destination and delivery.