New cars sitting in storage, rotting. Guess the economic 'recovery' isn't going according to plan.
http://www.zerohedge.com/news/2014-05-1 ... ars-go-die
http://www.zerohedge.com/news/2014-05-1 ... ars-go-die
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Worldwide new car glut
- Thread starter Mach1Mark
- Start date
Somehow I just don't believe it. A company would lose more money making vehicles and not selling them than by not making them in the first place.
Ponyman66
Yak, yak, yak
I can tell you I see scenes like that EVERY day at work. The real story is though, they are parked awaiting shipment. I watch literally dozens of rail cars roll in to the port everyday loaded with brand new BMW's from the plant here in upstate SC. I also watch as they're unloaded from those rail cars and parked by the hundreds. Then there are at LEAST four to five RO-RO's (roll on-roll off ships), that come into port each week and transport them overseas. It would be quit easy for me to snap a picture at any given time of all of the parked cars and make the same (unfounded), claim.
B67FSTB
The NorCal dude from Belgium
IMO thats not true. :hmm
Every carmaker today knows about future sellings and adapt productivity so they don't have to pill up cars that are made for stock purpose.
Every car that is made is been ordered.Some small percentage are for stock use.
Again , my 0.02 eurocent.
those pics remind me of the mid seventies . :hmm :hmm
Every carmaker today knows about future sellings and adapt productivity so they don't have to pill up cars that are made for stock purpose.
Every car that is made is been ordered.Some small percentage are for stock use.
Again , my 0.02 eurocent.
those pics remind me of the mid seventies . :hmm :hmm
Sorry but that is almost assuredly incorrect. It is extremely costly to manufacturing (in general) to scale back or worse, stop production. There is this little thing called "overhead" that still needs to be paid. The majority of which holds various costs that do not disappear just because you hit the stop button. There are workforces that, in many cases, still get paid if the line runs or not. And a hundred more reasons why in the short term it is best to keep things churning while you wait for the demand to increase."Midlife" said:
turq66
Well-Known Member
I can't imagine how so many cars are stockpiled...the economy is so roaring along. I wonder if it's across the board high stock or just the big 2 government motor companies?
I suppose one could also argue the never ending freezing winter weather and following crappy spring might be keeping buyers at home. But I won't. I support the logic that the crappier than even expected crappy economic climate is a bigger factor.
Ponyman66
Yak, yak, yak
"turq66" said:
I think it's ironic that the story that Gary posted the link to also has a "related articles" link space at the bottom of the page. Of of those related articles when I clicked on it?
http://autobeatinsider.com/news/another ... th-detroit
Kinda contradictory! BTW, if you check the top of the story that Mark posted you'll find a hyperlink to the original "story".
http://www.vincelewis.net/unsoldcars.html
I strongly suggest reading it thoroughly. The bulk of the photos were taken of English and Spanish facilities. I'd urge looking at the sole U.S. port he listed. The terminal name is Dundalk Marine Terminal. Type it into Google Maps and see for yourself. Keep in mind that Baltimore is one of the major East coast export ports.
OMG! Look at all of the cars! In the current image on Google you'll also see four ships. Three are Ro-Ro's for loading cars. Oh, sorry, none of the cars can be GM or Cadillac (silly me, thought they were the same company). According to the idiot author those are shipped in containers. I guess it's MUCH cheaper to ship cars in individual containers. <insert sarcasm here> You'll also see that the author, Vincent Lewis, points out that his article in no way is related to his book on conspiracy theories! :hmm
Did I waste waaay too much time on this? Oh well, I woulda probably wasted the time looking at internet porn! :whis
I will add more thought on why vehicle sales may have/are dropping off. Vehicles today are lasting MUCH longer. Even if someone was willing and had the means to purchase they don't "have to" as often today as in decades past when a car's useable life expectancy was MUCH lower.
"Ponyman66" said:
I think "wasted" is an unwarranted word.
I don't know about today's cars lasting longer. I have two 46-year-old Mustangs, a 43-year-old Mustang, a 29-year-old Bronco, a 14-year-old Focus, and a 12-year-old F-250 Superduty. Oh yeah, and my company truck is 18 years old. I may be personally screwing the graph.
Ponyman66
Yak, yak, yak
"msell66" said:
Fixed it! LOL
I think its safe to say you are in the minority!"Laurie S." said:
jims6t6
Well-Known Member
"Horseplay" said:
I'm pretty close- I have a 50 year old Mustang, a 49 year old Mustang, a 48 year old Mustang, 39 year old F250, a 16 year old Explorer, 13 year old Ranger, 8 year old Focus and a 4 year old f150 all runs real well except the 49 year old Mustang and it could be running in two or three days.
Re: Worldwide new car glut
I have 2 10 year old cars. One with 127,000 miles and one with 85,000. I don't buy new cars. I usually get them a couple years old and let someone else take the initial depreciation. We kept my wife's last Jeep for 10 years and it had 167,000 miles on it before we got rid of it. My Volvo that I sold 2 years ago I drove until it had 175,000 miles on it.
It seems it is getting harder to find used cars with low mileage. Everybody seems to be keeping cars longer.
Sent from my XT1058 using Tapatalk
I have 2 10 year old cars. One with 127,000 miles and one with 85,000. I don't buy new cars. I usually get them a couple years old and let someone else take the initial depreciation. We kept my wife's last Jeep for 10 years and it had 167,000 miles on it before we got rid of it. My Volvo that I sold 2 years ago I drove until it had 175,000 miles on it.
It seems it is getting harder to find used cars with low mileage. Everybody seems to be keeping cars longer.
Sent from my XT1058 using Tapatalk
turq66
Well-Known Member
My "new" car, the 2000 Mustang has 220,000 miles on it. The wife drives a '99 F150 that's pushing 140,000. The '73 914 odometer has not worked since before I got it in'83. It's stuck at 56,000, but I would estimate it be in the 200,000 range. So my low mileage car is the '66 Mustang with about 96,000 on it.
tarafied1
Well-Known Member
I work for a company that supplies the auto industry. We have seen the demand go up and down. While it is costly to just stop production, they do. Often they will curtail operations rather than completely stop. In some cases they switch products (if they are making parts) from less demand parts to the higher demand parts. Some stockpiling does occur but it would never reach those levels. It would never make sense to make that many cars and later scrap them. They land they are on is not free, the shipping to move them around isn't free, etc. etc.
While I agree the average US family might have slowed the buying and leasing, we are not the only ones who buy cars. For example: Our company has operations in Brazil which has a lot of poverty. Recently the poorest of people have been able to buy cars. Not new but a whole new population of people are buying cars so they need used cars. Somebody has to buy the new ones!
In China families who never owned cars before now have cars and they don't have used ones to buy.
Our company is spending billions to scale up production to be able to supply the auto industry more aluminum. We have local companies here in town that make plastic parts for the auto industry, we have a local company that makes the stereo systems, there is a local company making frame parts, etc. etc. If cars were just piling up like that, the ripple effect would be huge. Trust me, these companies would not continue to operate at a loss for long. They would lay off people and close up. It has happened before.
That article is just internet BS
While I agree the average US family might have slowed the buying and leasing, we are not the only ones who buy cars. For example: Our company has operations in Brazil which has a lot of poverty. Recently the poorest of people have been able to buy cars. Not new but a whole new population of people are buying cars so they need used cars. Somebody has to buy the new ones!
In China families who never owned cars before now have cars and they don't have used ones to buy.
Our company is spending billions to scale up production to be able to supply the auto industry more aluminum. We have local companies here in town that make plastic parts for the auto industry, we have a local company that makes the stereo systems, there is a local company making frame parts, etc. etc. If cars were just piling up like that, the ripple effect would be huge. Trust me, these companies would not continue to operate at a loss for long. They would lay off people and close up. It has happened before.
That article is just internet BS
53 yr old body, 17 yr old mind, 48 yr old Mustang, 14 yr old F250, 11 month old Escape and a 4 month old snow blower.
Almost balances out.
Almost balances out.