Hundreds of Thousands of Brand New Unsold Cars Parked Worldwide to Rot in Car Graveyards

Holy Mind Blown.

Have you ever thought about where last years model cars go if they don't sell? Because certainly, in 2014, you aren't going to drive down to the nearest Chevy dealership and shop for your new car amongst brand new cars from 2010, 2011, 2012, and 2013. Oh no, in May of 2014, you might be able to locate a very few 2013 models, discounted, and quite possible even a 2015, but most will be 2014.

See I always thought these cars were sold. In my logical brain, Chevy, Ford, Honda, etc, they all know how many cars to produce each year based on market data of what is expected to sell. I'd assume much money is spent gathering this data, that in fact a team of people at each car manufacturer is tasked with just this one thing: how many cars do we produce this year? Because that's how a viable business runs.

Then, in turn, each dealership would have its own regional data (possibly with some assistance from the manufacturer) and would know how to order their cars for the year. That's how you run a business.

In fact, apparently, neither of these things are true. In what I consider a very strong blow to the governments line of "don't worry, it's a recovery people!" Someone called Vincent Lewis has blown the cover right off the car industry. And yes, there are pics. (I actually found this on Zerohedge, and ZH is crediting Vincent Lewis with the discovery, the pics, and the article.)

Hundreds of thousands, possibly even more than one million, brand new and unsold cars are sitting around in absolutely huge car graveyards all over the world!

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....The car manufacturers have to buy more and more land just to park their cars as they perpetually roll off the production line.

Above is just a few of the thousands upon thousands of unsold cars at Sheerness, United Kingdom. Please do see this on Google Maps....type in Sheerness, United Kingdom. Look to the west coast, below River Thames next to River Medway. Left of A249, Brielle Way.

Here are a few more pics:



Continued....

Each picture on Vincent Lewis's website (I will link the source at the bottom) is explained, by location. You are even encouraged, as I linked above, to find these same images yourself on Google Earth. One picture is notated with the fact that the cars have since been moved.

What do I feel about this? Absolute outrage. So many struggling around the world, I know firsthand the struggles of America because I live here, nearly everyone I know is either destitute, or barely scraping by. Even those who are making it just fine are not getting ahead. The naturally frugal, underspending, sale shoppers, that is who builds wealth. And those in that category aren't able to build wealth, they are just able to not drown with masses (and good for you if you're in that group).

The outrage!

The car manufacturers, they could for starters NOT PRODUCE WASTE.

Absolute, total, utter waste.

These cars are not going to be drivable. Have you ever parked a car for any length of time? Say 3 or 6 months? It will deteriorate, it will rot. The tires will crack, the hoses will crack, fluids will leak. And here we have hundreds of thousands of cars doing just that. A complete waste.

And I know why. No one wants to admit the financial state of the world, and particularly the US, is as bad as it is. So we pretend. We make cars. After all, NOT making the cars would result in layoffs right? Things would just get worse.

The car manufacturers could, to recover from their mistake of over-producing, SELL THE CARS THEY'VE MADE at true market value.

And what is market value, the price agreed by a buyer and seller. That is making market. If all these cars cannot sell for 20,000 or 30,000 or more, for the love of God, LOWER THE PRICE. Millions of Americans, I'm sure, would be pleased to pick these cars up for 5,000 or 10,000, maybe be even more, and I'm sure it is the same in other countries as well.

But no. Car manufacturers must not sell at true market value, where a buyer and seller meet, they must make their profits. They must make their waste.

A waste of money, a waste of resources, a waste of land. A waste. And people could use these cars.

Props to Vincent Lewis for putting this out there:
VincentLewis.net

Please check out the source. It will probably take 10 or 15 minutes for a thorough read. There are maybe 20 pics in total.

the waste is sickening...but we all know big business is here to help ..."rolls eyes"...we could all live in paradise if we could could just retrain the greed emotion into something constructive

Old unsold cars are not anything new. Factories produce to predicted demand, not actual orders.

And, yes they are fine to be sold still. I bought a new car just over a year ago that was a year old. It hasn't missed a beat.

When you see big discounts going on at dealers, you know the reason now

a reply to: Ameilia

I saw that same article on ZH. But actually, it is an old article from 2009:

www.businessinsider.com...

Enjoy the recovery.

Wow,
thats a lot of cars.....
and Ive got to say even though it is a waste..
I am not bothered in the least..
hmm that one picture was dodge durangos.. wasnt that a government bailout company?
all part of the facade to keep the public fooled that the economy is moving ahead..

Simply put, the car industry keeps the economy afloat, the industry is subsidised, so that those people are working, and off the streets, every person working on the production line has three others supplying him, foundry workers for engine blocks, wire winders for starter motors, glass workers (windshields), seat makers, plastic molders, delivery truck drivers, tyre firms, machine press workers, carpet manufacturers, nuts and bolts are made somewhere!

a reply to: pikestaff

You are correct. And the cycle works ... but only when the automobiles are actually purchased.

And supply and demand curves would indicate that automobile prices should be extremely low. But...

originally posted by: pikestaff
Simply put, the car industry keeps the economy afloat, the industry is subsidised, so that those people are working, and off the streets, every person working on the production line has three others supplying him, foundry workers for engine blocks, wire winders for starter motors, glass workers (windshields), seat makers, plastic molders, delivery truck drivers, tyre firms, machine press workers, carpet manufacturers, nuts and bolts are made somewhere!

kinda have to wonder how long they can keep printing money to "keep things afloat"

I drive past a place like this quite regularly, at least there it's just a holding area for tens of thousands of cars, it's not a dumping ground, they all get moved in a regular time frame I believe, but this is near a major docks - so maybe not the same type of operation.

originally posted by: markosity1973
Old unsold cars are not anything new. Factories produce to predicted demand, not actual orders.

And, yes they are fine to be sold still. I bought a new car just over a year ago that was a year old. It hasn't missed a beat.

When you see big discounts going on at dealers, you know the reason now

See I don't think is true. It would be better if it was, but I don't think it is.

I don't think it is, because it doesn't make sense.

This is what would have to happen. In my opinion.

1. Dealership(s) have an overage of cars. They discount them as next years model comes out, some sell, but there is still an overage.

2. Manufacturers recapture unsold cars.

3. Manufacturers pay to ship cars to a seaport, pay for transport overseas.

4. Pay for car parking lots, pay transport costs from receiving port to lot.

5. RESHIP CARS BACK TO US (or wherever) to be sold at a later date, discounted.

Just no, it doesn't make sense, from a financial point of view, or otherwise. It's a complete financial waste and a profit-eater.

What would make sense would be for the car overage in one state to be disbursed to other states where they would have a better chance of selling. That would be logical. No manufacturer would pay to have the cars disbursed overseas for storage and the pay again to have them returned to the US to be sold a steep discount.

The cars are just rotting. In two years they will all require lots of repairs to be in a driveable condition.

Again, my opinion.

I would be very interested if some poster here who has industry experience (well beyond that of, 'yeah I sold cars for a living for a few years') to chime in regarding this. I'm halfway waiting for someone to come and debunk my OP. Which in this case, would be a relief.

just like houses. TPTB get bailouts instead of selling at market value.

it is all to control us. If we could buy a new truck for 15k instead of 70k, and a house for 50k instead of 450k THEY would have less control.

the ELites make ALOT of money off the interest of the loans. If they cant stick it to us on the financing and inflated prices, they will stick it to us via taxpayer bail outs.

Im ready to give all the super rich the Czar Nicolas treatment.

If they didnt keep making new models there wouldnt be old models in the first place.

a reply to: Ameilia

Nope, cars are shipped out and they sit around until sold. You forget rental agencies and dealer pre-registrations. All the stock is got rid of one way or another. Worst case scenario, the cars are actually worth more if pulled down and parted out.

There is no waste. Those cars in the pics were he result of the GFC and the massive drop off in sales. they would all be on the road now.

a reply to: Ameilia

I hear what you're saying and agree with you, it is a total waste of resources, plus these cars are tying up land that could be used for better purposes, like much needed housing, or cheap industrial space.

The truth is though, it is cheaper for car manufacturers to keep their production lines going, not to stop them even if they produce a massive surpluss.

And if they offloaded these unsold cars at 50%, 40%, even 25% of showroom value?

Well...nobody would ever buy a showroom, full priced car ever again...would you buy a new car at full price if you knew 6 months down the line you could buy one for 25% of that price?

Not many would.

But something has to be done about this...the waste of resources involved when we are getting the worldwide lack of resources messages shoved down our throats from those upon high at ever opportunity, makes for a pretty hypocritical situation.

How about the export market?

Why don't they load these cars onto cargo containers and ship them off to poorer parts of the world to see them at greatly reduced rates?

Some money coming in, and poorer people benefiting from having access to a reliable vehicle is a winner and it wouldn't affect the prices in the domestic markets plus the positive PR for the manufacturer would be priceless..i wonder why they don't do this?

a reply to: Ameilia

I agree with you. If they would lower the price I'm sure they would be sold. Thanks for showing me this. I had no idea.

I'm sure they don't waste them, they just eventually ship them to 3rd world countries to sell them overpriced.

a reply to: MysterX

So lets use walmart for example
60% of the workforce are dumb
and rather than have them at home doing nothing they are employed
selling usless garbage from china.
thus it keeps the people buying things and moving forward the economy.
the Elite are well aware of the system and its cogs
Unless your really ready for an ethics battle let the Elite worry about the real problem
with the Superficial world.. LOL

If this is indeed a growing trend, it speaks deeply to consumer waste culture ex. the same culture that throws food away exactly on the "best-by" date.

Surely, these unloved vehicles could be retrofitted and re-introduced to their manufacturers for recycling in exchange for some kind of credit. Additionally, they could be donated to their country's military or local organizations and farmers to help reduce issues around mobility. They could even be used in driver education facilities as practice vehicles.

Doing nothing as these cars sit idle sends the wrong message. I hope you agree.

Factories are closing everywhere btw, so the problem of overstock will soon end. Australia is losing all of it's manufacturers too. Tens of thousands of jobs around the globe are going.

Does this news make you happy now?

Factories in Europe, including Russia, can make almost 26 million cars a year, roughly 7 million more than they’re currently producing -- and customers will buy -- researcher IHS estimates. Matching capacity with demand would entail closing 18 European plants the size of Aulnay.

As automakers start closing factories, they’re meeting intense opposition. Ford Motor Co. (F) said a year ago it would shut three European plants and cut 5,700 jobs. General Motors Co. (GM) ’s Opel unit said in December it would close its Bochum plant, which employs 3,100. Italy’s Fiat SpA (F) in 2011 shut its Termini Imerese factory in Sicily.

Held Hostage In each case, unions have pressured local politicians to slow or stop the shutdowns. At a Ford plant in Belgium, a manager was briefly held hostage by workers before being released. Unions in Bochum have delayed GM’s plans. And in Sicily, Fiat’s workers are still on the payroll even though production has stopped.

“For political and union reasons, there has been so much backlash in a lot of countries,” said Ian Fetcher, an analyst at IHS Automotive.

Peugeot is shutting Aulnay as part of a plan to eliminate about 11,200 jobs in the country by 2015. President Francois Hollande said the closing -- the first at a French auto plant in 20 years -- was “unacceptable” but later a report commissioned by his Industry Ministry called it “inevitable.”

Source