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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.

VW Q3 Financial Woes, 2015 Tokyo Motor Show | Autoblog Minute

Consumer Reports pulls its Tesla recommendation, the U.S. Copyright Office offers a ruling affecting car owners, VW gets hit hard with third quarter losses, and lots of exciting news from Tokyo. Autoblog's Senior editor Greg Migliore reports on this Autoblog Minute Weekly Recap. Tokyo Motor Show Mazda Subaru Suzuki Tesla Toyota Concept Cars Autoblog Minute Videos Original Video Tokyo 2015

Autoblog Minute: Highlights from the 2015 Tokyo Motor Show

The 44th Tokyo Motor Show is here with plenty of exciting new car reveals, like the stunning Mazda RX-Vision concept and the wild Nissan Concept 2020 Vision Gran Turismo. Autoblog's Chris McGraw reports on this edition of Autoblog Minute, with commentary from Autoblog's Managing editor, Steven Ewing. Show full video transcript text [00:00:00] The 44th Tokyo Motor Show is here with plenty of exciting new car reveals and lots of tech-heavy concept vehicles. I'm Chris McGraw and this is your Autoblog Minute. The Tokyo Motor Show opens to the public but for those unable to make it to Japan Autoblog is on hand to report. For more we go on location to Tokyo and Autoblog's Managing editor, Steven Ewing. [00:00:30] - [00:01:00] [Steven Ewing Interview] And that's your recap of the 44th Tokyo Motor Show, for our detailed coverage of the event be sure to head to Autoblo.com/tokyo-motor-show. For Autoblog, I'm Chris McGraw. [00:01:30] [Outro] Autoblog Minute is a short-form video news series reporting on all things automotive. Each segment offers a quick and clear picture of what's happening in the automotive industry from the perspective of Autoblog's expert editorial staff, auto executives, and industry professionals. Green Tokyo Motor Show Mazda Subaru Suzuki Coupe Concept Cars Autoblog Minute Videos Original Video Tokyo 2015