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Auto blog
How new car shortages may impact your buying experience
Wed, 04 Sep 2013If 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.
West Coast labor dispute hampers Japanese automakers' US plants
Wed, Feb 18 2015The ongoing labor dispute between the International Longshore and Warehouse Union and port owners along the West Coast is starting to affect more Japanese automakers building vehicles in the US. The issue already forced Honda and Subaru to take the expensive option of airlifting some parts into the US weeks ago, and according to USA Today, Toyota and Nissan have begun doing so, as well. The choice hasn't been cheap, though, and Subaru's chief financial officer estimated that the decision cost around $60 million more per month than sending components by cargo ship. The effects continue to radiate, according to USA Today, and shortages of some models are possible. Honda is slowing production at its factories in Ohio, Indiana and Canada because the automaker doesn't have enough transmissions and electronics for some vehicles. Toyota already cut back on overtime at some factories. Nissan has only seen a small effect from the issue, though, because of its local suppliers. Dock workers and port owners have been negotiating on a new contract since last year, and the union has organized work slowdowns in response. According to USA Today, the automakers could move shipments to Canada or Mexico, but it would take longer for parts to arrive. News Source: USA TodayImage Credit: Mark Ralston / AFP / Getty Images Earnings/Financials Plants/Manufacturing UAW/Unions Honda Nissan Subaru Toyota shipping port labor dispute
Subaru previews Levorg concept ahead of Tokyo reveal
Wed, 30 Oct 2013When I was a kid I went with my family to a Subaru dealership. My brother, being clever as he is, pointed out that Subaru backwards spelled "you're a bus." The portly salesman was not amused, and we bought a Passat instead. Fast forward a couple of decades and we can't help but wonder if Subaru wasn't thinking the same thing when it named its new concept Levorg, which spells "grovel" backwards. The company itself says the name is a combination of the words "Legacy," "Revolution" and "Touring," but one way or another, that's what they're calling it, and here are the first preview images and details on the concept which Fuji Heavy will unveil at the Tokyo Motor Show this year.
Designed to combine the feel of a sports car with the practicality of a touring car, the Levorg looks set to preview the next step in a long line of performance-oriented Subaru wagons. It packs a 1.6-liter turbocharged boxer four and next-generation EyeSight technologies in what looks to be a svelte yet muscular form that could point the way forward for the next Legacy.
The Levorg, however, is not the only concept which Subaru will reveal in Tokyo this year. The Japanese automaker has also revealed plans to unveil the Cross Sport Design Concept (which could preview the replacement for the discontinued Tribeca), the Crossover 7 Concept (which looks like a taller version of the Legacy wagon with an apparent third row of seats), and an Evolution version of the Viziv concept presented in Geneva earlier this year. Scope them out in the gallery above and press release below.