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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.

Tier 1 suppliers call GM the worst OEM to work with

Among automakers with a big US presence, General Motors is the worst to work for, according to a new survey from Tier 1 automotive suppliers, conducted by Planning Perspectives, Inc.
The Detroit-based manufacturer, which has been under fire following the ignition switch recall and its accompanying scandal, finished behind six other automakers with big US manufacturing operations. Suppliers had issues with trust and communications, as well as intellectual property protection. GM was also the least likely to allow suppliers to raise their prices in the face of unexpected increases in material cost, all of which contributed to 55 percent of suppliers saying their relationship with GM was "poor to very poor."
GM's cross-town competitors didn't fare much better. Chrysler finished in fifth place, ahead of GM and behind Dearborn-based Ford, which was passed for third place this year by Nissan. Toyota took the top marks, while Honda captured second place.

Honda's slate for Tokyo Auto Salon includes S2000 revival, many Mugens

Honda has pulled back the covers on what we can expect to see at the 2013 Tokyo Auto Salon, including what looks to be an S2000 refresh some four years after the convertible left production. The S2000 Modulo Climax is an "exhibition model" based on the old roadster, but features updated front and rear fascias as well as an interior trimmed out in black and burgundy. Beyond that, details are scarce as hen's teeth.
Honda will also show off a number of vehicles based on the N-One mini, including the N-One Modulo Style, Mugen Racing N-One Concept and an N-One worked up by the Japan Nailist Association. That last creation features plenty of rhinestone decoration. (We wish we were joking.) Mugen will also display a tarted-up CR-V Design Study as well as the CR-Z Mugen RZ: a 300-unit specialty vehicle.
Meanwhile, the manufacturer's motorcycle arm will show off the Goldwing F6B, previously seen at EICMA 2012 as well as the CB1300 Super Four Special Edition and the NC700X. The automaker will also pepper its stand with a few of its racing machines for the public to enjoy. Check out the full press release below.