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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.

Honda, Subaru airlifting parts to bypass port labor diputes

It should be abundantly obvious that a vital element in building cars is actually having the components on hand to assemble them. A labor dispute on the West Coast between the International Longshore and Warehouse Union and management is not making that quite so easy for some Japanese automakers. Work slowdowns at the ports have pushed Honda and Subaru parent Fuji Heavy Industries into flying some parts into the country. The two automakers began shipping by airplane late last month to avoid production delays, according to Bloomberg, but it has been an expensive solution. Subaru's chief financial officer said the decision cost around $60 million more per month than sending components by cargo ship. They aren't the only companies dealing with the problem, either. Toyota reportedly stopped overtime assembly at some of its factories here because of the delays in getting parts, according to Bloomberg. The dockworkers have been negotiating on a new contract since May 2014, and the current offer on the table to them has offered a 3 percent raise, according to Bloomberg. Although, the union is reportedly considering another slowdown at 29 ports along the West Coast in the coming days. News Source: BloombergImage Credit: Nick Ut / AP Photo Auto News UAW/Unions Honda Subaru Toyota shipping port labor dispute

NHTSA investigating 33k Subaru Imprezas for airbag sensor flaw

The National Highway Traffic Safety Administration is beginning an investigation into an estimated 33,500 units of the 2012 Subaru Impreza because of a potential flaw with the sensor for the airbag system. The government agency has 26 complaints about possible faults with the Occupant Detection System for the front passenger seat, and this is the sensor that decides whether a person is an adult, petite, child seat or some other object and adjusts the deployment of the airbag accordingly. However, these reports allege that it was incorrectly turned off when someone was in the vehicle, which caused the airbag not to activate. Subaru put out a Technical Service Bulletin in May 2012 that attempted to address a similar problem. For now, this investigation is classified as a preliminary evaluation and is gathering more data about the potential problem to "assess the scope, frequency, and consequence," according to NHTSA. Related Video: INVESTIGATION Subject : Passenger Front Air Bag Suppression Date Investigation Opened: APR 10, 2015 Date Investigation Closed: Open NHTSA Action Number: PE15012 Component(s): AIR BAGS All Products Associated with this Investigation Vehicle Make Model Model Year(s) SUBARU IMPREZA 2012 Details Manufacturer: Subaru of America, Inc. SUMMARY: The Office of Defects Investigation has received 26 Vehicle Owner Questionnaire reports involving the passenger frontal air bag in MY 2012 Subaru Impreza vehicles. These vehicles use a capacitive type Occupant Detection System, which is intended to classify the occupant of the passenger seat as either full sized, small stature, a child seat or other object. The reports allege that the Occupant Detection System, failed to operate properly and incorrectly suppressed (turned off) the front passenger air bag when the seat was occupied. In a frontal crash sufficient to warranty deployment, a suppressed air bag may increase the risk of injury to the occupant of the seat. Additionally, ODI notes that Subaru published a Technical Service Bulletin (TSB) No. 17-16-12 on May 29, 2012 to address conditions with the Occupant Detection System that can lead to suppression of the passenger air bag when the passenger seat is occupied. ODI is opening this this investigation to assess the scope, frequency, and consequence of incorrect air bag suppression and any connection that may exists to the TSB.