Hurricane Sandy: The Devastation of New Jersey and Its Impact on the Car Industry

While it cannot be denied that Hurricane Sandy caused serious destruction along its path, there is certainly one good thing that exited it – it brought the very best away from people. So, as it caused immense physical injury to property and business interruption enough to be considered since the second-costliest Atlantic hurricane after Katrina, Hurricane Sandy inevitably strengthened a lot of people’s faith within their fellowmen.

Like most industries, the auto industry was also suffering from the disaster. A lot of cars were either flooded-out or tree-flattened through the height in the storm’s fury. So, exactly what does it mean for the industry? Let us take particular notice.

Another Look at Hurricane Sandy

While Hurricane Sandy started being a Category 1 storm, it quickly became a Category 2 storm which made a good part of the Caribbean, mid-Atlantic and Northeastern United States devastated. It likewise affected the Southeastern and Midwestern states to your slightly lesser degree. This horrific natural disaster caused $65.6 billion in losses and claimed the lives of 131 people everywhere in the United States.

However, Sandy’s tale of disaster is not confined inside the United States. It wrought havoc in six other countries, including Jamaica, Haiti, the Dominican Republic, Puerto Rico, the Bahamas, and Canada where it also caused considerable harm to life and properties.

The Impact of Hurricane Sandy in New Jersey

New Jersey was one of the states that took the worst beating from this natural disaster. For the record, over 70,000 homes and businesses over the storm’s path were destroyed, about 2 million households were left without power and 34 everyone was left dead in the storm.

Also, New Jersey suffered approximately $30 billion in operational losses. It also experienced massive flooding, public transit shutdown, and serious gasoline shortage. As such, Governor Chris …

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Hurricane Sandy Causes Large Damage to Auto Industry in North America

Assessment Just Beginning

Automakers, private dealers, new dealers, dealer groups, and transporters have just done started to look at the damage caused for their vehicle inventory and fleets by Hurricane Sandy. The storm that ravaged New York, New Jersey, as well as the surrounding areas not only took 100 human lives, just about all destroyed huge amounts of dollars of property and infrastructure. The auto industry wasn’t immune – photos and data are pouring incoming from all around the impacted regions showing the devastating outcomes of the storm, that not merely cause immediate but long term effects in the marketplace.

As the preliminary numbers can be found in from your new automakers, Honda, Toyota, Nissan, and Chrysler have announced that no less than 15,000 fresh cars will likely be scrapped. This staggering variety of brand-new, never driven vehicles that may be used by scrap parts is unimaginable, and it is only the beginning of Sandy’s aftermath. Those numbers don’t even bring under consideration the massive volume of personal vehicles that will likely be written off as a result of flood and water damage, trees collapsing, and fires.

Long term Effects

Over the end, worldwide assembly lines of the latest cars are going to be stressed to satisfy the unexpected additional demands in the market, and transportation in the new vehicles towards the affected areas could be slower than usual due to the infrastructure damage. Along with the tight supply of new cars, the car or truck industry can also be heavily affected. The availability of used cars is tight since it is, due to the huge decline in new vehicle leases in the past four years, and also the Hurricane’s effects will still only increase the crunch.

Traditionally Canadian car dealerships have moved south of the border to buy cars, …

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