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, …