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2015 Honda Civic Type R First Drive [w/video]

"VTEC just kicked in, yo." What's now a tired meme was once the greatest part of Honda ownership: the abrupt switch in power and tone as the engine's variable valve timing switched to the high-rev profile. The original VTEC gave way to i-VTEC, a continuously-variable system that works better on paper, but lacked the two-mode thrill. Fast forward to the 2015 Civic Type R, which combines modern VTEC with turbocharging for the first time on this nameplate. It's a pair as perfect as peanut butter and jelly. Or Han and Chewie. With ratings of 306 horsepower and 295 pound-feet, it's the most powerful Civic ever sold. Boost just kicked in, yo. The Civic Type R has always been an object of unfulfilled desire for enthusiasts in the US and Canada. While Europe and Japan have had multiple generations of the hottest Civic, we made do with the less powerful versions carrying the Si badge. Unfortunately, the 2015 model is another one we can't have. That said, this Euro-spec car's heart will form the basis of a new Civic Type R that's coming to America, possibly as early as 2016 as a 2017 model. The US will even get a cool five-door hatchback shell similar to the one you see here. If the next North American model – previewed by the coupe concept from this year's New York Auto Show – is any indication, our tenth-generation Civic is headed in a welcome styling direction. And before the Type R arrives, sweet turbo/VTEC goodness is promised in the form of a 1.5-liter four-cylinder engine that will power less sporty Civic models, including an Si that will slot below the Type R. There is an anchor's worth of stopping power available. Proving how focused the new Type R is towards gearheads, the sole transmission option is a six-speed manual, which makes it easy to exploit the engine's 7,000 rpm redline and 6,500 rpm power peak. This engine-speed ceiling is a thousand revs lower than the last naturally aspirated Type R. Indeed, the era of turbocharging seems like the end of Honda's history of screaming high-rev motors. But forced induction trades revs for torque. The new car has more than twice the oomph of the previous, 198-hp Type R. Our question then, is if that power and torque come with any character. The 2015 Honda Civic Type R is a very capable car, both on the street and at the track. We expected a stiff ride, but it's not bone-jarring. Double-jointed front struts and a clever knuckle design isolate steering from the up-and-down movement of the suspension.

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.

Japanese automakers welcome North American trade deal, fear what's next

TOKYO — Toyota, Nissan and Mazda welcomed on Tuesday the revised North America trade deal that left Japanese automakers unscathed, but they may face a bumpy ride when Washington and Tokyo hold new talks on over $40 billion of annual U.S. auto imports from Japan. The United States and Canada reached an agreement on Sunday to update the 1994 North American Free Trade Agreement after Washington had forged a separate trade deal with Mexico in August. The updated deal effectively maintains the auto industry's current footprint in North America, and spares Canada and Mexico from the prospect of U.S. national security tariffs on their vehicles. Mazda, which ships cars to the United States from Mexico and Japan, called the deal a "big step forward". Nissan, which makes the cars it sells in the United States locally as well as in Mexico, Japan and other countries, said it was "encouraged" by the agreement. Toyota, Japan's biggest automaker, said it was "pleased" that a basic deal was reached. Other automakers were not immediately available for comment. While the deal has removed the risk that the disintegration of the pact would have posed to automakers, bigger risks loom large for Japanese firms as a chunk of the roughly 7 million cars they sold in the U.S. last year were shipped from Japan, and a trade deal between Washington and Tokyo has yet to be agreed. The United States and Japan last week agreed to begin fresh trade talks, with U.S. President Donald Trump seeking to address Japan's $69 billion trade surplus, of which nearly two-thirds comes from auto exports. Washington is also investigating the possibility of slapping 25 percent tariffs on auto imports on national security grounds, although it has agreed with Japan to put any new tariffs on hold during the talks. Analysts say the United States may take a tougher stance on auto imports from Japan than from its neighbors. "If Japan requests an exemption from the 25 percent tariffs under consideration, Washington could propose a more strict cap on imports than it agreed to with Mexico and Canada," said Koji Endo, senior analyst at SBI Securities. "That would be a risk." This could be a big blow to Japan, as the United States is a key source of revenue for Japanese automakers including Toyota, Nissan and Honda. The U.S. market accounts for a quarter or more of their annual global vehicle sales, and of their total U.S.