Hurricane Sandy Forces Automakers to Scrap 15,000 New Vehicles
Hurricane Sandy's effects are still being felt more than a week after it ravaged New York, New Jersey, and other surrounding areas. While more than 886,000 homes and business continue to wait for power, automakers from around the world are also taking inventory of stock that was in the path of Sandy. In total, it's estimated that around 15,000 vehicles from Toyota, Chrysler Group, Nissan, Hyundai, Kia, Fisker, and Honda were ruined as a result of the biggest storm that originated in the Atlantic to ever make landfall. Nissan expects that between itself and its luxury arm, Infiniti, the automaker will have to scrap around 6,000 vehicles. Toyota and Lexus have been forced to scrap about 4,000 units after Sandy made each one unsellable while Honda and Acura have been forced to crush 3,400 units. Out of the Detroit big three, so far only Chrysler knows just how many vehicles were lost to Sandy with 750 vehicles needing to be scrapped. Both General Motors and Ford are still tallying the number of vehicles lost in the storm's high-rising surge. Hyundai and Kia escaped relatively unscathed with about 400 and 200 vehicles damaged by Sandy's wrath, respectively. Fisker was not as lucky as the California-based automaker suffered a loss of 320 Karma vehicles at $103,000 apiece due to a fire. "We don't have a full estimate of the cost to replace them yet," Roger Ormisher, a spokesman for Fisker to Automotive News. The Fisker Karma vehicles were sitting in the Port of Newark waiting to be processed when Sandy came through and submerged them under water. Sandy is already known as one of the biggest storms to ever march up the eastern seaboard, but the number of vehicles lost pales in comparison to Hurricane Katrina, which shook New Orleans to the core back in 2005. When all was said and done, Katrina wrecked about 600,000 vehicles not to mention countless other lives. Sandy struck the eastern seaboard during the U.S. auto industry's busiest time of the year but nevertheless, it's expected that sales will be made up by the end of next month. Source: Automotive News (subscription required)
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