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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, Toyota refute reports of BRZ, 86 demise

After news broke of an anticipated Japanese report telling that the Toyota 86 and Subaru BRZ twins were not long for this world, both carmakers have denied the cars' successors have been canceled. Carscoops reports that both Toyota and Subaru have stated they are developing next-generation cars. As a Subaru USA spokesman told Carscoops: "We do not endorse this report coming from Japan's Best Car. ... We are moving ahead with a next-generation Subaru BRZ, but have no further details at this time." The website also reported a similar statement from Toyota. With the models getting long in the tooth and no test mules having been spied, doubts are not unwarranted — remember just how long Toyota teased the fifth generation Supra before its 2019 debut. More information is not yet available, or whether the two brands will still collaborate to bring the new-generation coupes to the market, but for Toyobaru fans this might be grounds to breathe a sigh of relief. That would also mean, that if the hinted MR-2 revival is based on solid ground, there will be a full "Three Brothers" Toyota sports car portfolio for sale in the next decade. With the Supra offered also as a four-cylinder in Japan, it will be interesting to see if Toyota will retain the 86's current, slight power advantage over the Supra's 197-horsepower variant or respect the status of the bigger brother. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

New Prius, Bentley Bentyaga, Rolls-Royce Dawn | Autoblog Minute

Bentley and Rolls-Royce introduce new luxury vehicles and Toyota revealed its latest Prius. Autoblog Senior editor Greg Migliore reports on the Weekly Recap edition of Autoblog Minute. Bentley Rolls-Royce Toyota Convertible SUV Hybrid Autoblog Minute Videos Original Video bentley bentayga rolls-royce dawn