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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.

VW Finds CO2 'Irregularites', SEMA Recap, and More | Autoblog Minute

Volkswagen's diesel emissions scandal gets a new wrinkle, US regulators hit Takata Corporation with a substantial fine, and we head to Vegas for a look at tuner paradise at the 2015 SEMA show. Autoblog Senior Editor Greg Migliore reports on this edition of Autoblog Minute Weekly Recap. Acura Chevrolet Honda Mazda Mitsubishi Toyota Autoblog Minute Videos Original Video Acura Legend

Honda HR-V Prototype looks awfully familiar

Is there anything quite so exciting as seeing a brand-new vehicle for the very first time? Part of the allure of auto shows is the chance to see new ideas, just before they're fully baked and ready for public consumption. "Prototypes" you might say, of production models that are just around the corner. Or, in the case of the Honda HR-V, already down the block a ways.
Here in Paris, Honda has unveiled its HR-V Prototype, a nearly production-ready version of a "new SUV for Europe." Before we take umbrage with that SUV designation - as far as we can tell the Fit-based crossover isn't much of a mudder - we should address the fact that at this year's New York Auto Show in April, Honda handed over just a few images and specs of the actually production-read HR-V for the US. Presumably this is a "prototype" for Europe, where the NYC car is US-specific, but we're still scratching our heads a bit.
No matter! Here in France, Honda tells us that the utile little hatch will be available powered by both a 1.5-liter gasoline engine (the one American customers will see), and a 1.6-liter diesel unit, both wearing the company's Earth Dreams Technology label and presumably running cleaner and more frugally than ever. In Europe, a standard six-speed manual will come with both mills, while the 1.5-liter will offer the option of a continuously variable transmission.