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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.

Subaru recalling 72k EyeSight-equipped sedans and CUVs

Despite critical acclaim, the Subaru EyeSight system is in a bit of trouble today. Some 72,000 cars and crossovers equipped with the comprehensive active safety suite are being recalled. Affected vehicles include the 2015 and 2016 model year Legacy sedans built from March 10, 2014 to April 16, 2015, Outback crossovers built between February 24, 2014 and April 16, 2015, XV Crosstrek CUVs built from October 16, 2014 to April 15, 2015. Also included are EyeSight-equipped 2016 WRX sedans built after March 23, 2015. The problem rests with the EyeSight system's pre-collision braking system, or perhaps more accurately, the switch that activates the brake lights. According to the bulletin from the National Highway Traffic Safety Administration, should that switch fail, not only will the brake lights not turn on, the automatic braking system won't work either. Subaru is in the process of notifying owners, who will need to report to dealers to have the system reprogrammed. Scroll down for the official notification from NHTSA. Related Video: Report Receipt Date: JUN 12, 2015 NHTSA Campaign Number: 15V366000 Component(s): EXTERIOR LIGHTING , FORWARD COLLISION AVOIDANCE Potential Number of Units Affected: 72,000 Manufacturer: Subaru of America, Inc. SUMMARY: Subaru of America, Inc. (Subaru) is recalling certain model year 2015 Legacy vehicles manufactured March 10, 2014, to April 16, 2015, Outback vehicles manufactured February 24, 2014, to April 16, 2015, Impreza vehicles manufactured September 9, 2014, to April 14, 2015, XV Crosstrek vehicles manufactured October 16, 2014, to April 15, 2015, and 2016 WRX vehicles manufactured March 23, 2015, and equipped with the Eyesight Driver Assist System. If the switch that activates the brake lights fails, the automatic pre-collision braking component of the driver assist system will not function. CONSEQUENCE: If the automatic pre-collision braking system does not function as intended, the vehicle will not react to an obstacle in its path, increasing the risk of a crash. REMEDY: Subaru will notify owners, and dealers will reprogram the driver assist system, free of charge. The manufacturer has not yet provided a notification schedule. Owners may contact Subaru customer service at 1-800-782-2783. Subaru's number for this recall is WQS-54. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

Scion trying to build business case for FR-S convertible as Subaru bows out

Hope may remain for a convertible version of the Scion FR-S, according to a report from Ward's Auto. You'll recall that rumors were swirling about the feasibility of a rear-drive Toyobaru convertible as early as October, and that back in November, Subaru - which makes the FR-S, Subaru BRZ and Toyota GT86 - essentially nixed the idea of an open-topped variant.
"We make the car, so if we don't make it, it can't happen," brand chief Yasuyuki Yoshinaga told Automotive News, according to Ward's, at the Tokyo Motor Show. "Our engineering department told me that losing the entire roof requires a complete redesign of the structure. It would need a big change."
Despite Yoshinaga-san's arguments against a droptop variant, Toyota is apparently still considering the model. Speaking to media at the 2014 North American International Auto Show, Scion's US vice president, Doug Murtha, hinted that the rear-drive droptop was in the works.