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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.

New Civic, FCA UAW Agreement, Frankfurt | Autoblog Minute

FCA reaches a tentative agreement with the UAW, Honda reveals the all new 2016 Civic, and the Frankfurt Motor Show dazzles us again.Senior editor Greg Migliore reports in the Weekly Recap edition of Autoblog Minute Weekly. UAW/Unions Bentley Honda Jaguar Porsche Tesla Autoblog Minute Videos Original Video FCA porsche mission e civic

Honda recalling 143K Civic, Fit models for CVT

Honda is recalling 143,676 examples of the 2014-2015 Civic and 2015 Fit for a problem with the way that its software controls the CVT. Currently, the system uses high hydraulic pressure in the transmission at times, which can put stress on the drive pulley shaft. Also, some of those parts "may have been produced at the low end of the hardness specification" during manufacturing, the automaker reports. When the two factors are combined over time, the high pressure could cause the shaft to break. If this happens, it would result in losing drive to the front wheels or in them locking up. According to documents submitted to the National Highway Traffic Safety Administration (as a PDF), Honda received the first report of a shaft breaking in July 2014 in the US, and there was a wheel lockup in Canada in January 2015. As of September 3, there were 23 warranty claims about this issue but no reported injuries. The fix will be an update to the CVT's software, and the recall will begin October 16, according to NHTSA. Honda is urging owners to get their vehicles repaired as soon as they receive the notification. Related Video: Statement by American Honda Regarding CVT Drive Pulley Shaft Recall: 2014-2015 Civic and 2015 Honda Fit Oct 1, 2015 - TORRANCE, Calif. Honda will voluntarily recall approximately 143,000 model-year 2014-2015 Civic and 2015 Fit vehicles in the United States to update the software that manages the continuously variable transmission (CVT), free of charge. Affected vehicles have CVT control software that is written to use high hydraulic pressure during certain CVT operation modes, which as a result may subject the drive pulley shaft to high stress. In addition, during manufacturing of the drive pulley shaft, some parts may have been produced at the low end of the hardness specification. If shafts with lower hardness are repeatedly subjected to the specific high hydraulic pressure modes, it may result in the shaft breaking during operation. If the drive pulley shaft breaks, the vehicle may lose acceleration or the front wheels may lock up while driving, increasing the risk of a crash. No crashes or injuries have been reported related to this issue, which was discovered through the warranty claim process in the United States. Honda is announcing this recall to encourage each owner of an affected vehicle to take it to an authorized dealer as soon as they receive notification of this recall from Honda.