The car industry collapse - where unsold cars go

      Home » Online videos » The car industry collapse - where unsold cars go
More Online Videos

The car industry collapse - where unsold cars go

Interesting video looking at the huge numbers of imported unsold cars building up in the ports and storage facilities throughout the USA with no market to go to. Full car sales yards with no customers.

The car manufacturers must be in a dilemma, they can only store the cars for so long, their price will keep falling even if they aren't being used. By 2010 nobody will pay full price for a 2008 model, even if the economy recovers.

If you keep the high price of the car to maintain the brand value, this ties up cash in unsold inventory.

It's a gamble - can the cash flow outlast the downturn, or will they run into cashflow problems and be forced to sell these cars for a "real" market price.

I also wonder at the wear of keeping new cars out in the elements for a year with no protection, or maintenance. At what stage do the cars start to decay through UV wear etc and they can't be classified as 'new' any longer.



unsold-cars-in-ports.jpg - 9.42kb
By netchicken: posted on 1-1-2009








The car industry collapse - where unsold cars go | [Login ]
Powered by XMB
Privacy Policy