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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.

Senator pushes for up to life sentence for auto execs found to delay recalls

Democratic Senator Claire McCaskill (shown above) has had it with automotive execs stalling when it comes to recalls. The Missiourian has proposed a new bill, the Motor Vehicle and Highway Safety Enhancement Act, which aims to improve the automotive safety following the high-profile fiascos involving General Motors and Toyota. Aside from a doubling of the budget for the National Highway Traffic Safety Administration over the next six years and the removal of the $35-million limit for fining automakers, the plan includes a provision that would punish auto executives if it's discovered they knowingly delayed recalls. How will it punish them, you ask? Oh, you know, just life in prison. The bill "gives federal prosecutors greater discretion to bring criminal prosecutions for auto safety violations and increases the possible penalties, including up to life in prison for violations that result in death," McCaskill's office told The Detroit News. If a delayed recall led to serious injuries, meanwhile, execs could still face a 15-year stint behind bars. As for that change in the fine structure for automakers, the removal of the limit is complemented by a hefty increase in the per-vehicle fine, from $5,000 to $25,000. With this change, GM could have been on the hook for $55 billion (with a "b") in fines for its bumbling of the ignition switch recall, rather than just $35 million. The News says, though, that NHTSA has "wide discretion" in handing out the fines. Considering a $55-billion fine is enough to sink any automaker, it is unlikely that such a monumental sum would be handed out. Still, the potential threat of such a death sentence should be enough for any automaker to sit up and take notice. "With millions of Americans behind the wheel every day, and more than 33,000 killed on our roads each year, we've got to do more to keep our cars and the roads we drive them on safe," McCaskill said, according to The News. "Painful recent examples at Toyota and GM have shown us we also must make it easier to hold accountable those who jeopardize consumers' safety. For too long, auto safety resources have remained virtually stagnant while cars and the safety challenges they present have become more complex." What do you think? Do you agree with McCaskill's proposed bill? Should the punishments for automakers and execs be more or less harsh? Have your say in Comments. News Source: The Detroit NewsImage Credit: J.

Toyota giving away its first hydrogen car in US

California isn't Nevada, but Golden State residents are nonetheless being given a chance to make a small bet on what may be a large prize, courtesy of Toyota. The Japanese automaker will start selling its first hydrogen fuel-cell vehicles on the West Coast late next year, and before that, Toyota would like to pick up some positive publicity by giving America's first one away to one lucky Californian. Toyota is working with the Environmental Media Association, a nonprofit that melds celebrities with sustainability-related causes, on the promotion. The upshot is that folks can go to Bidding For Good and buy a $100 ticket to be eligible for the prize. Heck, people can get a half-dozen ducats for $500. What a deal. The winner will be announced October 18 at Warner Bros. Studios. Last month, Toyota unveiled a television commercial that proclaimed 2015 as the potential turning point for fuel-cell vehicle adoption. Toyota will start selling the FCV in Japan next April for about $69,000. Toyota says the fuel cell vehicle will be able to go about 300 miles on a full tank of hydrogen and, aside from some water vapor, will not have any emissions. Read more in Toyota's press release below. How the West Was Won: Toyota Offers Chance to Be a Fuel Cell Pioneer TORRANCE, Calif., Oct. 8, 2014 – It's hard to be a trendsetter in places like Los Angeles or San Francisco, but one lucky Californian will blaze that trail when they park a new Toyota Fuel Cell Vehicle (FCV) in their garage. Toyota and the Environmental Media Association (EMA) are offering a historic opportunity to own the company's first zero-emission hydrogen vehicle when it arrives in California in late 2015. Toyota is the first major auto manufacturer to give away a fuel cell vehicle to an individual owner. As the infrastructure to support the vehicle is currently only available in the golden state, prize applicants must be California residents. Residents can purchase opportunities to win at www.biddingforgood.com for a cost of $100 per ticket or $500 for six. All monies raised will benefit programs of the EMA, a nonprofit 501(c)3 dedicated to harnessing the power of celebrity and the media to promote sustainable lifestyles. The winner will be announced at the 24th annual EMA Awards, presented by Toyota and Lexus, on Oct. 18 at Warner Bros Studios. The EMA awards honor individuals within the entertainment industry for efforts to promote environmental messages.