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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.

Ford unveils its facelifted Falcon finale with new XR8

While its days may be numbered, Ford isn't just going to let its Falcon sedan limp out for the Australian market. No, the Blue Oval is releasing a refreshed Falcon for its final years, and it's lead by this, the new XR8. That's right, this dead-car-driving is going to go out on a high note.
Ford's global design DNA dominates the looks of the new Falcon, with a grille reminiscent of the US market Fusion and the European-market Mondeo. The headlights aren't a straight port, and boast their own unique LED running light pattern (at least on the XR8), but the overall look is strikingly similar. Out back, LED taillights highlight the rear of the Faclon. Despite the substantial new fascia, this is still a mid-cycle refresh. That means most of the rest of the Falcon's body panels are carryovers from the current model.
The XR8 model, shown above, arrives with a supercharged V8, allegedly displacing 5.0 liters. Unfortunately, details on the Falcon's mechanicals are in remarkably short supply. Ford has committed to a range of turbocharged four, as well as turbocharged and naturally aspirated six-cylinders, in addition to the V8, although specifics on those mills aren't available.

Did a US automaker blow the whistle on Hyundai, Kia fuel economy issue?

In all of the most hotly contested mainstream segments of the motoring universe, the difference of one mile per gallon averaged on a widow sticker can mean the difference between a sale and a walk-off - to say nothing of two or three mpg. So, when Hyundai and Kia were forced to reveal that many of their 40-mpg ratings were actually 38s and 37s, well, it made for big news.
It also, conceivably, made for a competitive disadvantage immediately, when the Korean automakers' products were being shopped versus the guys down the block. And it's that disadvantage that makes a recent story from Automotive News so juicy.
AN is reporting that Margo Oge, former head of the Environmental Protection Agency's Office of Transportation and Air Quality, got a tip in 2010 that Hyundai/Kia were "cheating" to get its impressive fuel economy numbers. The tip, said Oge (who retired from the EPA this past September), came from a senior vice president from a domestic automaker. The source was credible enough for Oge to launch an audit of the Hyundai figures, which ultimately lead to the debacle that we reported on a few months ago, and that the Korean company has been trying to bounce back from ever since.