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|17th February 2009, 17:24||#1|
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Growing stocks of unsold cars around the world | Business | guardian.co.uk
Carmakers around the world are cutting production as inventories build up to unprecedented levels. Storage areas and docksides are now packed with vast expanses of unsold cars as demand slumps
1. Nissan has announced plans to cut its Sunderland workforce by 1,200. Thousands of unsold cars are stored around the factory's test track
2. Honda is halting production at its Swindon plant in April and May, extending the two-month closure announced before Christmas to four months. Honda and Japanese rival Toyota are both cutting production in Japan and elsewhere. Pictured, Hondas await export at a pier in Tokyo
3. Land Rover Freelander cars await distribution outside the Halewood operations site in Liverpool
4. Earlier this week Jaguar Land Rover said 450 British jobs would go
5. The open car storage areas in Corby, Northamptonshire, are reaching full capacity
6. Imported cars stored at Sheerness open storage area awaiting delivery to dealers
7. Newly imported cars fill the 150-acre site at the Toyota distribution centre in Long Beach, California
8. The build-up of imported cars at the port of Newark, New Jersey
9. Stocks of Ford trucks in Detroit, Michigan
10. New cars jam the dockside in the port of Valencia in Spain
11. Peugeot cars await shipment to Italian dealers at the port of Civitavecchia
12. Unsold cars at Avonmouth Docks near Bristol
13. With many manufacturers on extended Christmas shutdown, the number of cars rolling off production lines in December fell 47.5% to just 53,823
Will this hold good for India also?
The Silver Bear Cafe
Auto Prices About To Crash
"With unsold cars stacking up by the day, demand falling faster, and bailout silliness getting sillier, I have three easy to make predictions.
1) Hundreds of dealerships are headed for bankruptcy in 2009
2) The Fed Is Destined To Become World's Largest Auto Dealership
3) Cars are going to get cheaper, much cheaper. Auto prices will crash. Liquidation sales later this year after the 2010 models come out are going to be fabulous.
It makes no sense to buy a car now, no matter how good the deal looks. The deals will get progressively better as the year rolls on."
Last edited by Samurai : 17th February 2009 at 18:32. Reason: back-to-back posts
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|17th February 2009, 17:32||#2|
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Good report. The world is in a huge 'correction mode' financially and therefore all the areas are affected equally.
This is indeed a sorry state of affairs and the silver lining in the cloud is we might expect car prices to come down!!
|17th February 2009, 17:53||#3|
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It's really a sad financial condition the world is now rolling on. If this goes ahead for a few more months, each and every sector of worldwide business, finance and industries are going to fall sharply into a big ditch. It may take some years for the world to recover well.
Guys! Stock up. Silver lining on the cloud appear very bleak for now. Don't rely much on banks either.
Automotive sector will have to go thru very hard times. Tough time expected for enthusiasts. Sad.
|17th February 2009, 18:39||#5|
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Looks amazing. But not a single Indian manufacturer or dealer has announced any cut of significance. And I am also talking about Indian car companies which are owned by a foreign manufacturer (like your toyota for instance). Can anyone corroborate this?
|17th February 2009, 21:09||#6|
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|17th February 2009, 22:36||#9|
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I can imagine the state of these holding lots. Even car dealers all over face the same situation,with their parking lots filled with cars awaiting sale. Huge discounts, rebates etc, but not much seems to work.
The economy..the economy ..the economy!!
|17th February 2009, 22:42||#10|
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While the cars may indeed be excess stock or unsold cars, the pictures would look no different when taken during full economic boom. All cars are piled at port before shipping and will wait at lots before they are delivered to dealers. So the pictures are misleading, they will look the same irrespective of economic condition.
|17th February 2009, 22:59||#11|
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I heard from a friend that buyers in the UK is having a buy one get one free offer on some models of KIA! I wonder how good a marketing strategy it is. Who will need 2 cars when most cant afford one! Most companies are giving upto 40% discounts on thier cars. My friend himself lost his job as he worked with an OE supplier for honda and ford who has already shut down.
|17th February 2009, 23:05||#12|
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In India its business like any other day, most of the talk about slowdown is in the air only! In a way the worldwide slowdown is good as it will bring down the over inflation. Price corrections will happen & old giants will go down making room for newer ones like the bloom of spring!
Blind price rise/inflation had taken place in recent times, it was about time, the ones who had made tonnes of money, loose some!
All these cars lined up are pieces of junk, otherwise also they won't have done any good to the planet, rather would have caused all sorts of pollution - air, noise, etc.
This should teach manufacturers to make economical, environmental friendly cars.
|18th February 2009, 04:09||#13|
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On a serious note its a saddening picture, each of these beautiful machines could have made a home into an enthusiast's heart such as ourselves and members of this wonderful forum.
Now they signify losses and job cuts in the UK/USA and others around the world, I can only think of the cascading effect this will cause on vendors, parts manufacturers, die manufacturers, the truckers who move these goods, from mines to steel/refining units, then onto alloying units and auto component manufacturers.
Yes coming to the most important question, none of these cars will be dumped into India, due to the various homologations involved with ARAI & its paper work and costs. Secondly import duty on CBUs are astronomically high apart from their imports being highly controlled (only to hospitality sector with stringent import norms)
Thinking aloud, the Indian car manufacturers wanted protection against foreign imports, ironically they cut their own feet in times like these, they could have imported some stock into India.
Manufacturers having a large stock pile of older models may not even think of launching new models, may hold onto new model rollouts.
It's sad to see such a pic. sigh.
Last edited by mmmjgm : 18th February 2009 at 04:15.
|18th February 2009, 10:35||#14|
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|18th February 2009, 10:40||#15|
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It should take another 1.5 - 2 years for the world to recover from this financial mess. Automotive business along with construction are the ones to take the major HIT.The dealership I work for are having pileed up stocks like this. Chrysler,Jeep, Dodge = 2000, Volvo - 1200, Honda = 16000, Toyota= 28000 cars.
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