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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.

Ford announces two recalls, 442k vehicles affected in North America

Ford is announcing two recalls for North American that affect a total of 442,300 vehicles and multiple model lines. The larger campaign covers the possibility of electric power steering systems that can fail in the 2011-2013 Ford Flex, Taurus, Lincoln MKS, and MKT; the 2011-2012 Ford Fusion and Lincoln MKZ; and the 2011 Mercury Milan. This recall affects 422,814 vehicles in North America, including 393,622 in the United States, 25,195 in Canada, and 3,997 in Mexico. According to the company, an intermittent electrical connection can cause the power steering to cut out, although manual steering would still work. Ford knows of four minor accidents from this issue, but there are no injuries. Depending on trouble codes from the vehicle, dealers will either upgrade software for the power steering control module or replace the steering gear. The second recall covers 19,486 examples of the 2015 Ford Mustang with the 2.3-liter EcoBoost turbocharged four-cylinder engine with a production date between February 14, 2014, and February 10, 2015 at the Flat Rock Assembly Plant. Specifically, there are 19,095 of these in the US and 391 in Canada. These pony cars can show elevated underbody temperatures, which can lead to degradation of the fuel tank, fuel vapor lines, and parking brake cable seals. There are no reports of accidents, injuries or fires from this, though. To fix things, dealers will install a better-insulated fuel tank shield, add thermal patches around the tank and parking brake cable, and put thermal wraps around the fuel vapor lines. You can read the specific build dates and locations for the models affected by the power steering issue in Ford's press release below the video. Related Video: FORD ISSUES TWO SAFETY RECALLS IN NORTH AMERICA DEARBORN, Mich., May 27, 2015 – Ford is issuing two safety recalls in North America. Four minor accidents and no injuries are attributed to one of these conditions.

Autoblog Minute: Krafcik CEO of Google autonomous vehicle division

We look at how Google's hiring of automotive executing John Krafcik could affect the future of autonomous vehicles. Autoblog's Mylencia Gillenwaters reports on this edition of Autoblog Minute. Show full video transcript text [00:00:00] We look at how Google's hiring of automotive executing John Krafcik could affect the future of autonomous vehicles. I'm Mylencia Gillenwaters and this is your Autoblog Minute. Krafcik, a veteran of the auto industry, arrives at Google after serving as CEO of Hyundai and TrueCar. For more on what the Krafcik hire could mean to the industry, we go to Autoblog's Pete Bigelow: [00:00:30] [Pete Bigelow Interview] Google has [00:01:00] an outspoken champion for autonomous driving, in Krafcik who isn't shy about taking to social media to share his thoughts. Krafcik and Google seem poised to move self-driving cars into the next phase of development and it will be interesting to follow along as the tech giant [00:01:30] attempts to change the way we get around. For Autoblog, I'm Mylencia Gillenwaters. Autoblog Minute is a short-form video news series reporting on all things automotive. Each segment offers a quick and clear picture of what's happening in the automotive industry from the perspective of Autoblog's expert editorial staff, auto executives, and industry professionals. Ford Hyundai Autonomous Vehicles Autoblog Minute Videos Original Video john krafcik google autonomous vehicles