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

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 Christie publicly declared this as one from the worst disasters ever hitting New Jersey thus far.

Hurricane Sandy as well as the Car Industry

Due to massive flooding and heavy storm surges, a lot of vehicles in your neighborhood inevitably got damaged. Official records indicated that greater than 16,000 new cars in New York and New Jersey were destroyed while about 100,000 to 250,000 used cars must be scrapped.

While this figure seems high enough, it is likely to increase once General Motors and Ford, two in the biggest automobile makers inside the US, announce how many unsold vehicles have been damaged by the recent calamity. Nissan, Toyota, and Fisker also suffered significant losses as being a result of the calamity. Due to the extensive damage brought on by Hurricane Sandy, automobile insurance companies are supposed to pay about $250 million in claims for New Jersey alone.

Hurricane Sandy might have created a devastating mark in the good reputation for New Jersey however it is sure to take more than this to bring New Jersey down.