[h@r$h@l]

Where the World's Unsold Cars Go To Die

In the past several years, one of the topics covered in detail on these pages has been the surge in such gimmicks designed to disguise lack of demand and end customer sales, used extensively by US automotive manufacturers, better known as "channel stuffing", of which General Motors is particularly guilty and whose inventory at dealer lots just hit a new record high. But did you know that when it comes to flat or declining sales and stagnant end demand, channel stuffing is merely the beginning?

Presenting...

THE WORLDS UNSOLD CAR STOCKPILE

Houston...We have a problem!...Nobody is buying brand new cars anymore! Well they are, but not on the scale they once were. Millions of brand new unsold cars are just sitting redundant on runways and car parks around the world. There, they stay, slowly deteriorating without being maintained.

Below is an image of a massive car park at Swindon, United Kingdom, with thousands upon thousands of unsold cars just sitting there with not a buyer in sight. The car manufacturers have to buy more and more land just to park their cars as they perpetually roll off the production line.


Source : http://www.zerohedge.com/news/2014-0...ld-cars-go-die

Regards,

Originally Posted by h@r$h@l

Where the World's Unsold Cars Go To Die

Ran through the URL. After that ran through google maps and the other areas mentioned in the URL. Simply, I am scared

I was in the assumption that there will always be a few thousands of cars unsold. And every manufacturer prefers to have some stock, as no one knows when and how they would need them. The best example is of Maruti Suzuki, when there were riots in their factory, they badly needed cars to sell as there was such a demand.

But after reading Bloomberg's article my opinion changed.
http://www.bloomberg.com/news/2014-0...p-renault.html

And also through the BBC news, which says this http://www.bbc.com/news/business-26242197
IF they are selling in million's they would need atleast one month stock in advance, which they are doing.
Request you to run through it. UK sells ~300K cars every month. Man, those numbers are simply Astounding. Russia is in similar lines when it comes to sales. The whole europe sells some 10 Lakh cars. as per BBC webpage.

Seeing their growing demand, booming sales and their government rules, it would be mandatory to have enough stock in place to meet the fluctuations in demands or else they would be sued. No manufacturer prefers to get sued, so they are more cautious, so there is a stock pileup. And now, i don't see the situation going out of control. This is indeed good news, but the article writer misinterpreted it, without going through the sales data.

[Secretariat]

Here's a suggestion to temporarily fix the problem. Make and ship to India the following

- One week make Ecosports (you can't even book let alone buy one)
- One week make Honda Citys (waiting time upto six months)
- One week make Celerios (whatever the waiting time now is)
- One week make assorted Xcents, Polo TSIs, whatever whatever (all of which are supposedly undelining the principle that for good things in life we have to wait (endlessly))

Voila; problem solved for at least a month

[Soumyajit9]

Its quite an interesting read. It is surprising to read this article about less demand.
Ever since I have started understanding the world, all I have heard is that Automobile sales have gone up, customer demands have gone up.

This is an indication of an incorrect demand-supply research data that have been provided to car makers, which is why there has been huge production, but fewer people to buy.

The new generation of young people with easy money is a major boost in car sales in India, and Asian countries.
Whereas in Euopean countries, car is a not a status symbol, it is a neccessity.

So while in India we blindly buy cars just because our neighbour bought a car, in foreign countries they buy if they don't have access to public transport.
I have been to quite some countries in Europe and see how much people hate to drive cars. They are much more happy standing in a train/tram with a coffee cup and a newspaper in hand.

Another major reason is the population of a country. In foreign countries, lesser population, lesser cars to be owned (even though each member of a family owns a car).

EDIT:: Ohh, and yes, like Secretariat said above, can these car makers seriously send over some cars to India. They should know that there used to be a lottery system to buy XUVs' !! Or the waiting period for Ecosport is over 6 months, while their cars abroad are rotting for 1 year !!

[Sankar]

The author of that article is an idiot.

http://jalopnik.com/that-zero-hedge-...hit-1578124255

[SmartCat]

Yeah, ZeroHedge.com is one of those "financial apocalypse" website and you'll only find negative stuff about world economy - how it will implode soon and we'll all go back to stone age.

Read articles on ZeroHedge with a bucket of salt.

[Soumyajit9]

Originally Posted by Sankar

The author of that article is an idiot.

http://jalopnik.com/that-zero-hedge-...hit-1578124255

Haahaaa. You nailed it.

But just wondering how is the demand supply research and data made ?
Waiting period of 6 moths to 1 year for a recently launched model (example Ecosport) is too long. Is that a gap in the research made during production preparation phase ?

[sudeep.pandya]

Why don't they sell it at throwaway prices? I believe there will be a good demand as this pileup can become an industry in itself.

[bblost]

I don't know much about stealing cars.
But if I was a car thief then this is where I would go.

[rohanjf]

Originally Posted by sudeep.pandya

Why don't they sell it at throwaway prices? I believe there will be a good demand as this pileup can become an industry in itself.

As is, the biggest competition for new cars is older versions of the same models (especially when they are super-reliable). Manufacturers don't have much control over this. When manufacturers have all the control over unsold cars, why would they create a new industry and shoot themselves in the foot?

It is like a petroleum giant investing an electric car company

When we buy cars, some of the money we pay to the manufacturers goes for the expenses in storing these cars anyway (just like how some money from customers goes into attracting new customers - through marketing).

[sridhu]

http://www.zerohedge.com/news/2014-0...ld-cars-go-die


Every manufacturer has millions of cars stockpiled, unsold in the 'developed' markets but continue to treat their customers in India, China & APAC as if they are doing them a favour (I am looking at you VW, Skoda, Renault, Nissan and especially, Ford).

The people who pay hard earned money to buy new cars are in in these geographies. But Ford randomly hikes prices for people who have booked cards 6-8 months before. VW stiffs customers on service and would not even clarify (forget about actual warranty or recall) there is a warranty on their DSG gear boxex - the very same gear boxes that have been recalled elsewhere. Skoda in India a synonym for bad service. Renault thinks the best way to crack the market is to charge very high prices for fairly average cars, in terms of specs.

Wake up, maufacturers if you want to avoid the same fate in your burgeoning markets.

[SunnyBoi]

Please read this article as well before coming to conclusions about the ZeroHedge article.

http://jalopnik.com/that-zero-hedge-...hit-1578124255

[pramods]

That article is not correct, please go through this for more details :-)

http://jalopnik.com/that-zero-hedge-...hit-1578124255

The visuals are strong, the headline is clear, and you almost don't have to read the article to viscerally understand the problem. I, more than anyone, get the appeal of this story because it seems to largely rip off an article I wrote — including the images and headline — more than five years ago (which itself was largely a rehash of a Guardian article). ..

Read on for complete details.

[Kanboy]

Mod Note : Please avoid typing with excessive dots.........like................this. Thanks

Hey sridhu

I completely agree with you, I am in the market to buy a new car, but somehow its just disgusting to see how much car companies charge for their sub standard cars. Specially VW and Skoda. These two manufacturers are on my never to buy list as their products from Polo to Passat wiz a wiz Rapid to Superb have clutch, electronics, air conditioning issues.

These companies are not even ready to agree with their problems/defects and say they are due to wear and tear. Japanese car are trying to save money by dumping underpowered diesel engines in their cars, so what's a man got to do? Buy a pre owned vehicle I guess.

[anachronix]

Thats complete BS article from zerohedge and why this rant against Ford in the OP?

More, there is 2+2 Year extended warranty on the VW Polo TSi with the dreaded DSG gearbox

And whats with the Renault and average cars?

Originally Posted by sridhu

...and especially, Ford).

...and would not even clarify (forget about actual warranty or recall)there is a warranty on their DSG gear boxex

...Renault thinks the best way to crack the market is to charge very high prices for fairly average cars, in terms of specs.

Wake up, maufacturers if you want to avoid the same fate in your burgeoning markets.