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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.

Chris Harris checks out Ken Block's Hoonicorn '65 Mustang

Ken Block's Hoonicorn, which stars in Gymkhana Seven, might still bear a passing resemblance to a vintage 1965 Ford Mustang, but underneath the skin, the car is one of the baddest custom machines to ever do a smoky burnout on the road. The ever enthusiastic British auto journalist Chris Harris is now showing what really makes Block's new ride tick on video, and Harris even gets to go for quite a ride. The only Mustang components really left on the Hoonicorn are the A-pillar, B-pillar and roof, according to Harris. Everything else is ditched to create Block's ultimate Gymkhana tool. The 845-horsepower, 6.7-liter Rousch Yates V8 sits behind the front axle, and the grunt is routed to all four wheels through a Sadev gearbox usually found on Dakar Rally vehicles. The whole drivetrain is packed with cool little touches; like that giant handbrake that also disconnects power from the front wheels when in use. The superlatives about the Hoonicorn could go on forever, but settle in and let a very excited Harris tell you about just some of them. He's like a kid in a candy store here, and the look that combines surprise, fear and joy during his ride with Block is the kind that lacks a suitable word in the English language.

Ford rethinking vehicle launch strategy

With a new boss at the helm, Ford is looking at new ways to improve its vehicle launches in North America to prevent recent issues that have popped up with models like the Lincoln MKZ, Ford Escape and Ford Fusion. Speaking with Automotive News, Ford's new president of the Americas, Joe Hinrichs, revealed a few ways the automaker plans to avoid early build issues such as the engine fires on certain 2013 Escape and Fusion models and months-long delays for customers to receive their MKZs.
It sounds like the root of the problems may have been Ford's relationship with suppliers compounded by the fact that the product surge came on the heels of the recent industry-crippling recession, and in the AN article, Hinrichs says improvements are being made to reduce problems during the launch of new or redesigned models. Three such improvements that were implemented during the first quarter of this year including more rigorous quality comparisons, better use of computer technology to catch major problems sooner and hiring engineers to work closer with suppliers.