2013 Subaru Impreza 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 recalling over 8,000 cars for Takata airbag inflators

We have one more automaker to chalk up recalling Takata airbag inflators. Subaru is now throwing its hat in the ring by repairing 8,557 vehicles nationwide for faulty front passenger inflators. According to the Defect Notice from the National Highway Traffic Safety Administration, the problem affects 3,151 examples of the Legacy, Outback and Baja from the 2003 and 2004 model years and 5,406 units of the Impreza, including the WRX and STI (pictured above), from the 2004 model year.
As we all know by now, it's possible for the inflators to explode during airbag deployment possibly affecting not only the bag's inflation but also potentially spraying metal shrapnel at occupants. All of the affected vehicles will receive new passenger side inflators at no charge to the owner.
Seven automakers in the US announced recalls for the problem in late June affecting an estimated 2.1 million vehicles. Unlike some of the companies, Subaru is repairing all of the affected models in the US, rather just in certain warm-weather states. According to company spokesperson Michael McHale to Autoblog the reason is that "it was simpler to get everybody in there and make sure it was done." The replacement inflators should be in by the end of July, he said. Scroll down to read the recall report from NHTSA or download the full defect notice as a PDF, here.

World Car Of The Year down to its final four

Judges for the World Car of the Year Award have narrowed down the finalists to just four vehicles. Out of a total of 42 entries, only the Mercedes-Benz A-Class, Porsche Boxster/Cayman, Scion FR-S/Subaru BRZ/Toyota GT-86 and Volkswagen Golf remain standing. For Volkswagen, this marks the second consecutive year the company has had an entry among the finalists, and the fourth time since 2009. In order to qualify, a vehicle must be on sale on two continents during the span of time between January 1, 2013 and May 30, 2013. A panel of 66 journalists from 23 countries then vote on the finalists.
Three vehicles have made the cut for the last round of voting on the 2013 World Performance Car as well, with the Cayman/Boxster and FR-S/BRZ/GT-86 running against the Ferrari F12 Berlinetta. Meanwhile, the Renault Zoe, Tesla Model S and Volvo V60 Plug-In Hybrid are duking it out for the World Green Car Award. Finally, the World Car Design of the Year Award is up for grabs between the Aston Martin Vanquish, Jaguar F-Type, and the Mazda6. Check out the full press release below. Overall winners will be presented at the 2013 New York Auto Show.