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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.

Toyota develops new pre-collision system with steering assist

A number of automakers are working on developing fully autonomous cars, but it looks like the groundwork for such technologies will likely show up first as semi-autonomous systems for both safety and convenience. Following recent announcements from Nissan and Ford in this area, Toyota has now released information for some of its advanced semi-autonomous technologies that could be offered in production cars over the next few years.
On the safety front, Toyota's new pre-collision system with pedestrian-avoidance steering assist is aimed at protecting the folks who aren't in the car. This system combines visual and audible alerts with automatic brake assist and automatic steering. If warnings don't get the driver to slow down, the brake assist kicks in if a collision is very likely, but if that is still not able to avoid the impending collision (and if there is enough room to do so), the car can automatically steer itself around the pedestrian. This sounds most beneficial for last-second dangers such as a person accidently stepping out into the road in front of a car. Toyota hopes to have this technology available to customers by 2015.
The Japanese automaker is also testing a suite of technologies called Automated Highway Driving Assist (AHDA). The key part of this is a new adaptive cruise control system that uses vehicle-to-vehicle (V2V) communications rather than a radar-based system. This cooperative-adaptive cruise control allows vehicles to communicate their acceleration and deceleration data with other cars, which Toyota says this helps to improve fuel efficiency and traffic flow. Also a part of AHDA is the Lane Trace Control feature, which sounds like a next-gen lane keep assist. This system uses cameras, radar and a computer to keep the vehicle in a "smooth driving line" by being able to change steering angle, engine torque and braking force. Toyota says this technology could be in place by the "mid-2010s."

Hyundai tops Toyota in annual CarMD Vehicle Health Index

CarMD has released its third annual Vehicle Health Index, which for the 2013 tracked the frequency and cost of repairs for "check engine" problems of 119-million vehicles built between the 2003 and 2013 model years. For the first two years of the index, Toyota ranked at the top of the list, but this year's results see Hyundai moved to number one, pushing Toyota down a spot.
The Korean automaker's rise to the top has been "fueled by its low repair frequency," according to CarMD. Toyota is second to Hyundai in lowest repair frequency, but Toyotas also have the highest average cost of repair. (Interestingly, General Motors vehicles have the lowest average.) Both Toyota's and Hyundai's manufacturer "health" ratings suffered this year, but Toyota took a bigger hit, which also is what helped Hyundai achieve the top ranking.
While Hyundai is the top manufacturer in the index, the 2012 Toyota Camry is the top vehicle. The best-ranking Hyundai was the 2010 Elantra (behind three Nissan models and four Toyotas), which took the number eight spot. Hyundai has six other vehicles in the top 100.