2006 Subaru Impreza Wrx Sti Sedan 4-door 2.5l on 2040-cars

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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.

Subaru facing class-action suit over excess oil use

A recently filed lawsuit in federal court against Subaru of America and its parent Fuji Heavy Industries claims that several recent models burn an excessive amount of oil. The case, which is seeking class-action status, covers examples of the 2011-2014 Forester, 2013 Legacy and 2013 Outback with the 2.5-liter four-cylinder engine and the 2012-2013 Impreza and 2013 XV Crosstrek with the 2.0-liter four-cylinder.
The suit alleges that Subaru knew about the excessive oil consumption but didn't fix the problem, according to USA Today. It contends that owners have to spend an unreasonable amount of money to keep these models topped up with Texas tea, and that the people represented wouldn't have bought the vehicle if they had known that this could happen.
As proof of Subaru's knowledge of excessive oil use, the lawsuit cites four technical service bulletins from the company telling dealers about the issue, although, that would seem to partially invalidate the claim that the automaker hasn't attempted to fix things. The case was filed on behalf of two men, one with a 2014 Forester and the other with a 2013 Outback. "Following an extensive investigation, we now look forward to litigating the case," said Matthew Schelkopf, an attorney for the plaintiffs, to USA Today.

Subaru mulling expanding Indiana plant for Forester, Impreza

Thanks to currency fluctuations and their impact on the bottom line, a growing number of Japanese automakers are starting to increase vehicle production in the US, and it appears Subaru could be the next to do so. According to Bloomberg, Subaru is looking into expanding production capacity at its Lafayette, Indiana assembly plant, which currently builds the Outback, Legacy and Tribeca as well as the Toyota Camry.
Subaru's Indiana plant currently has an annual maximum capacity of 310,000 units, but the automaker is expecting to far exceed that figure this year, with year-to-date sales of 299,788 units through November (not including Camry) - an increase of almost 30 percent over 2011. The report indicates that Subaru could expand the plant to add as many 50,000 additional units to the plant, likely in the form of either the Forester or Impreza.