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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.

2016 Ford Shelby GT350 Mustang rated at 526 hp, 429 lb-ft

When Ford debuted the Shelby GT350 Mustang at the LA Auto Show last year, we were told it'd have more than 500 horsepower and over 400 pound-feet of torque. And indeed it does; Ford confirmed today that its hot 'Stang will make 526 hp at 7,500 rpm and 429 lb-ft at 4,750 rpm. Compared to the GT350's main rival, the Chevy Camaro Z/28, that's an increase of 21 hp, but a loss of 52 lb-ft. That said, this Mustang packs some serious prowess, especially in its most hardcore GT350R trim. It sounds pretty wicked, too. It's worth noting that both the standard GT350 and GT350R use the same engine, with the same output ratings. It's also worth noting that this is a flat-plane-crank engine. It's the most powerful naturally aspirated engine Ford has ever made, with 102 hp per liter. Redline is 8,250 rpm. It's a lightweight engine, too – the 5.2-liter mill weighs less than Ford's own 5.0-liter Coyote V8. Perhaps most impressive is the price point for the 2016 Shelby GT350. The standard car comes in at $47,870, while the GT350R will command $61,370 – a big drop over the Camaro Z/28 and it's $73,300 sticker price (including destination but not gas guzzler charges). Ford confirmed the power output news at a media briefing today near its headquarters in Dearborn, MI. Stay tuned for more information as it becomes available. Related Video:

Ford to add more than 2,000 jobs in Kansas City

Continued high demand for the Ford F-150, along with the addition of the all-new Transit series of commercial vehicles, has led Ford to announce that it will add over 2,000 jobs at its Kansas City Assembly Plant. At the time of the announcement, the plant boasts 2,450 hourly employees working on two shifts. All told, Ford will invest $1.1 billion in the Kansas City plant to expand truck production and begin producing the Transit series.
According to the automaker, fullsize truck sales are up 19 percent through April of 2013, leading to an additional 900 workers and a third shift of production for the F-150. Production of the Transit series will begin in the fourth quarter of this year, requiring an additional 1,100 workers. In addition, Ford estimates that a total of 18,000 jobs will be created by suppliers to its Kansas City plant to support the additional vehicle production.
Want to know more? Scroll down for the complete press release.