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, but maybe in light of the recent catastrophe, we are going to say American car buyers headed to major auctions in Toronto, Ottawa, along with the new England of Canada. GM and Ford, another two domestic carmakers that belong for the ‘big three’ haven’t yet provided even initial estimates on his or her vehicle loss.
The port of Newark in New Jersey is a major transit point for vehicles (new and used) from all around the world which can be approaching the US East Coast. Along with the devastating damage caused in dealerships, parking lots, and warehouses, the port itself sustained major damage, and all sorts of the vehicles located there were suffering from the storm. Small electric car maker Fisker Automotive from California lost 338 of it’s $103,000 vehicles at the port through the storm. 16 of these vehicles were set unstoppable due to electrical problems due to the saltwater entering the port yard. Along with the massive initial lack of vehicles and property, the port itself sustained damage that may inevitably cause shipping delays with new vehicles being brought for the area to replenish the stock of damaged units.