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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.

Toyota to boost its Subaru stake to more than 20%

TOKYO — Toyota Motor Corp plans to raise its stake in Subaru Corp to more than 20% from around 17% now, a deal that would also see the smaller firm invest in Japan's top automaker, two people with direct knowledge of the matter said on Friday. The deal is due to be approved at a Toyota board meeting on Friday, the people said, declining to be identified because the information has not been made public. The investment would come a month after Toyota and another smaller Japanese automaker, Suzuki, said they would take small equity stakes in each other. Such tie-ups highlight how automakers are scrambling to chase scale, manage costs and boost development. Traditional car makers, especially smaller ones like Subaru and Suzuki, are struggling to meet the fast pace of change in an industry being transformed by the rise of electric vehicles, ride hailing and autonomous driving. Toyota's investment is likely to cost more than 70 billion yen ($650 million) based on Subaru's stock market value, said the Nikkei business daily, which first reported the news. Subaru is likely to reciprocate with a stake in Toyota that would roughly equal the value of Toyota's additional investment, one of the people told Reuters. The companies have long worked together on projects such as the Toyota 86 and Subaru BRZ twins. At one time, Subaru built Toyota Camrys in its Indiana plant. Representatives for both Toyota and Subaru said the news was not something that had been announced by their companies. "The plan appears to be to ultimately make Subaru a fully owned subsidiary, to help create a 'mega Toyota.' This is the first step towards that," said Takeshi Miyao, managing director of Carnorama, a consultancy. "It's all about building scale." Subaru is particularly strong in sport-utility vehicles (SUV) and all-wheel-drive technology. The two automakers in June said they planned to jointly develop an electric sport-utility vehicle on a platform produced together, to split costs. Car markers around the world have been joining forces to slash development and manufacturing costs of new technology. Ford Motor Co and Volkswagen AG have said they will spend billions of dollars to jointly develop electric and self-driving vehicles. Toyota seems to be particularly keen to build scale now by investing in smaller, domestic automakers, rather than forging cross-border tie-ups like some of its rivals.

Man posts dashcam video of epic crash over cliff

YouTube user TurboFoz uploaded dashboard camera footage Monday of a terrifying crash that occurred last year as he was driving the popular Angeles Crest Highway in California. Last January, TurboFoz was zipping through the San Gabriel Mountains in his 2004 Subaru Forester XT. The engine sound was so alluring, TurboFoz opened up his Forester in the tunnels that dot the scenic highway for the full effect. "As an auto enthusiast, when you have a nice relatively fast car with a loud exhaust you tend to like tunnels," he wrote. "They make your exhaust sound that much better, sort of like singing in the shower." What he didn't know was that the road curved sharply just outside of one of these tunnels. A bystander tried to wave him down, but TurboFoz wasn't sure why the man was signaling to him. It was only when he saw the angle of the road up ahead that he realized the man was trying to tell him to slow down. He applied the brakes, but it was too late. The Subaru slid across the road and tumbled off the cliff. He rolled several times before coming to rest on a large drainage pipe jutting from the steep mountainside. If it wasn't for that small ledge on the sheer cliff the accident could have been much worse. "It was the only horizontally level piece on an extremely steep sloped hill," he wrote. "Had I spun off a few feet before or after, I'd be dead. TurboFoz says driving too fast on an unfamiliar road cost him his beloved Subaru and almost his life. Luckily TurboFoz was unhurt, but unluckily his beloved Forester was a total loss. TurboFoz hopes he can save other enthusiasts from the same, or worse, fate. "This is a reminder to be safe, pay attention and KNOW THE ROAD before you try to have "fun" on it," he said. "I failed on all 3 of those accounts and it nearly cost me my life. I've more than learned my lesson and would hope some others do by my example." News Source: YouTube Subaru Driving Ownership Safety Autoblog Minute Videos