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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.

Sales incentive growth clustered around brands with few CUVs, trucks

While it's arguably been around the longest, the dominance of the four-door sedan has been under threat for many years. As a further sign of the hurtin' that SUVs and crossovers have put on today's four-doors, a new report from Automotive News points to the increasing use of incentives by brands reliant on cars and light on CUVs and pickups.
Honda, Toyota, Volkswagen and Kia have all been stung by double-digit increases in their incentives-to-transaction price ratio, according to AN, which cites data from TrueCar. Honda's ratio is up 14 percent, while Toyota, VW and Kia are up 18, 15 and 19 percent, respectively.
"Most of the incentive growth we have seen is in product segments with low demand - midsized or large sedans," TrueCar CEO John Krafcik told AN. "As this trend goes on, the brands with three-sedan strategies are going to be in worse shape on incentive spending than the crossover brands."

Recharge Wrap-up: Pikes Peak Honda CR-Z, Tesla's liquid-cooled cable

Honda will race a CR-Z hybrid in the Pikes Peak International Hill Climb. The car will use Electric SH-AWD, which probably means it will be using electric motors to power the rear wheels. Whether the Pikes Peak CR-Z uses the same powertrain as the upcoming Acura NSX or the 3.5-liter V6 with three-motor hybrid system used in the Acura RLX Sport Hybrid is still unclear. The car will also use Acura's Precision All-Wheel Steering (P-AWS) system. The CR-Z will be piloted by Tetsuya Yamano. Read more at Hybrid Cars, or, if you read Japanese, at Response. Tesla has introduced a thinner, liquid-cooled Supercharger cable. While the convenience of not having to "wrestle a good-sized snake into the car," as Elon Musk calls it in a shareholder speech, is wonderful, it could also allow for faster charging in the future. The liquid-cooled charging cable "also has the potential for increased power of the Supercharger long-term," says Musk. A cable able to withstand larger loads could mean shorter stops when it's time for a charge. Tesla has installed the first next-generation cable at the Mountain View Supercharger. Read more at Charged EVs. Smart is offering its Twinamic automatic dual-clutch transmission on more models in Europe. In addition to the 71-horsepower Smart Fortwo, the DCT will now be available in the 90-horsepower Fortwo and the 71-horsepower Forfour. In the Fortwo, the Twinamic DCT adds ˆ1,275 (about $1,437) to the price over the manual transmission, and is an extra ˆ1,425 (about $1,606) in the Forfour. The option of steering wheel-mounted paddle shifters as part of the Sport package makes driving the efficient microcar even more fun. Deliveries of the newly equipped vehicles begin at the end of July. Read more in the press release below. smart extends twinamic range for fortwo and forfour: Even more models with automatic transmission Stuttgart. Following in the footsteps of the smart fortwo with 52 kW/71 hp, the smart fortwo with 66 kW/90 hp and the smart forfour with 52 kW/71 hp are now also available with fully automatic twinamic dual clutch transmission. This costs an extra 1275 euros compared to the versions with 5-speed manual transmission (forfour: 1425 euros). This means that both model series now offer a choice between no fewer than nine engine/transmission combinations. Delivery of the new models will begin at the end of July 2015.