2005 Honda Civic Si Hatchback 3-door 2.0l 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.

NHTSA Probes Nearly 400,000 Infiniti, Honda Vehicles Over Steering Faults

As many as 391,000 vehicles from Honda and Infiniti may eventually need to be recalled as a result of two, separately announced Preliminary Evaluations from the National Highway Traffic Safety Administration to ascertain the scope of the potential safety hazards. In one of the queries, NHTSA is looking into 24 reports from drivers of the 2013 Honda Accord who say they had total loss of their power steering or experienced a sudden increase in the necessary effort to turn the wheel. In four cases, the problem may be linked to crashes. According to the claims, 13 people reported seeing a warning message during the failure. Turning off the car and restarting it would fix the issue in some cases. If a recall is necessary, it could affect an estimated 374,000 Accords. The second investigation is much smaller in scope. The safety agency is investigating the 2008 Infiniti EX35 after two complaints of the steering wheel shaft separating and the vehicle losing the ability to steer. Both reports say the steering became loose when driving and then completely failed once the vehicle was stopped. A recall for the problem would affect an estimated 17,000 vehicles. Recalls Honda Infiniti Safety NHTSA steering

Honda is first Japanese carmaker to be a net-exporter from US

Over the last decade or so, many foreign automakers have challenged the idea of what defines an "American car," but Honda took things a step further last year by exporting more cars out of the US than it imported in. Reuters is reporting that in 2013, a total of 108,705 Honda and Acura models were exported from the US with only 88,357 being shipped in. This gives Honda a net exporter status here, and makes it the first of such among the major Japanese automakers.
Honda's US imports have been dropping over the last five years while its exports have been steadily increasing. In 2008, the report indicates that Honda shipped 187,000 vehicles to the US and exported only 20,000, and even by 2012 Honda still favored imports with 136,000 imports and 74,000 exports. The article says that US-made Honda and Acura vehicles were exported to 50 countries with most ending up in Mexico, but the big news is that the Honda's US production set a record in 2013 with 1.3 million units built.