2010 Subaru Outback 2.5 Limited Edition Leather Navigation Back View Camera on 2040-cars

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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, Honda, Nissan and more collaborating to increase fuel efficiency

Toyota, Honda, Mazda, Nissan, Subaru, Mitsubishi, Suzuki and Daihatsu have announced an alliance that will see a push to improve fuel economy from both gas-powered and diesel-powered engines by as much as 30 percent before the end of the decade.
The newly assembled Research Association of Automotive Internal Combustion Engines put the roughly $20-million project together, with the Japanese government committing to half the cost while the eight manufacturers will chip in the rest.
According to Automotive News, the automakers will team up and share basic research on internal-combustion engines in a bid to cut costs. Eventually, the results of the research will find its way into a production vehicle, although it's unclear just when we'll see the fruits of this partnership on the road.

2015 Subaru WRX STI goes for the gold [w/video]

If the all-new 2015 Subaru WRX has taken a good thing and made it great, then this should be, well, greater. Meet the range-topping WRX STI, packing more power, a decidedly more aggressive suspension tune, beefier looks, a giant wing and (woo!) gold wheels.
Those spiffy BBS wheels and WRC rally-ready matching WR Blue paint won't necessarily be around forever, though - Subaru is offering this package (along with unique interior trim) on the STI Launch Edition, limited to just 1,000 units. And cool as it may look, there's far more to love about the new STI package.
Power comes from a 2.5-liter turbocharged boxer four-cylinder engine, sending 305 horsepower and 290 pound-feet of torque to all four wheels via a six-speed manual transmission. (Launch Edition models even get a short-throw shift kit, which will likely be available as a dealer-installed accessory thereafter). Unlike the standard WRX, a do-it-yourself 'box will be the only transmission available. Subaru is employing its new - *ahem* - Multi-Mode Driver Controlled Center Differential version of the Symmetrical All-Wheel Drive, which, in addition to a standard 41/59 torque split, uses things like torque vectoring, and, when put in manual mode, allows the driver to select one of six center differential locking levels. In other words, the STI should be incredibly sharp on the road - sharper than ever before.