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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.

Junkyard Gem: 1990 Subaru XT

Back in the 1980s, Subaru decided that the futuristic-looking, gadget-packed Alcyone would go over well in North America, and so the XT became available for the 1985 through model years. They were reasonably popular in California, and I saw this discarded example awaiting its fate in a Los Angeles wrecking yard. Because the boxer engine in the XT was so low, the car could have an extreme wedge-shaped body and a very low coefficient of drag. Inside, an asymmetrical steering wheel, gearshift that looked like it had been torn from the cockpit of a Mitsubishi F2, and Mars Base-style controls made Toyotas and Hondas of the era look staid and sensible. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. When you adjusted the tilt steering wheel, the instrument cluster moved with it. If you were really serious, you could get an XT with a video-game-style digital instrument cluster. You could get an XT Turbo (with 115 horsepower), or an XT6 (with six cylinders and 145 horsepower). Four-wheel-drive and all-wheel-drive systems were available on some models for some years. This car here is an ordinary front-wheel-drive XT with naturally-aspirated 90-horse four-cylinder. Not a speck of rust, pretty straight, but nobody was willing to save it. Next stop: the crusher! Related Video: Featured Gallery Junked 1990 Subaru XT View 10 Photos Auto News Subaru

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.