Cars stockpiling around the world

[exigeracer]

Just thought I'd share some pretty interesting images.

Source.

 

[Nicksfix]

Look at the state of the economy , no one is buying anything. Everybody is hanging on to their dollar. That plus our financial institutions are in a shambles.

 

[boiltheocean]

From the Toyota Burnaston plant in Derbyshire. Sure they have way too much free time.

 

[Nicksfix]

agree

 

[YSSMAN]

The problem with new car sales is that people are looking for good deals... And there aren't any new cars that really fit those requirements. Furthermore, with the situations that some companies are having now with their leasing and financing programs, a lot of Americans don't qualify for their new rates after their credit score requirements adjusted.

I think this is a case-in-point for building cheap, reliable, small cars that are reasonable alternatives to used cars. When the local Toyota and Chevrolet dealers are literally sitting on at least a year and a half of back inventory, its a bad sign. Particularly when they're two of the largest of their kind in the state.

That picture of Ford Foci and Ka's is staggering. I can't believe they have that many sitting in "limbo" for that long.

 

[Jondot]

That picture of Ford Foci and Ka's is staggering. I can't believe they have that many sitting in "limbo" for that long.

They'll be pretty screwed if anyone wants a yellow one.

 

[Mark T]

Why don't they sell them at cost price to increase there cash flow?

 

[YSSMAN]

Ask them yourself. We're already at employee pricing on GM, Chrysler and Ford vehicles in the US. I think Chrysler is doing "Employee Pricing Plus" which gives you up to a $7000 discount on top of the employee price.

Overproduction, it seems, is effecting everyone.

 

[gator of kana]

Whoa, look at all of them new cars that no one is buying. It's a shame really, now more people will have to use taxis and buses to get to places. I thought nobody was buying cars at the dealerships near me but come on that is just ridiculous

 

[homeforsummer]

Here's an idea Ford, why didn't you delay the release of the new Fiesta and Ka until you'd shifted some of the ones in the picture? Eejits.

Current economic climate and all that, you might say, but in an age where everyone is striving to be "greener" and companies like Ford are on the offensive with how clean their new cars are, it actually angers me that they can overproduce so much, which is far more wasteful than building cars that burn a little more fuel.

 

[buickgnx88]

If I had to guess, I'd say black, white, and red are the 3 most popular colors.

 

[GT Pro]

@ 4th photo. I'll give them 25k for each of those XF's. Atleast then they can clean up some of their unsold inventory and have a bit more cash in their hands.

 

[Perfect Balance]

They should give me a few of those cars. I don't think they'll miss them.

 

[buickgnx88]

What the companies should do is, in exchange for government loans, donate a bunch of their stockpiled cars to the less fortunate. Like those ads you see where you could donate your car for a tax refund, they could donate some cars for some more gov't dough.

 

[TVC]

What the companies should do is, in exchange for government loans, donate a bunch of their stockpiled cars to the less fortunate. Like those ads you see where you could donate your car for a tax refund, they could donate some cars for some more gov't dough.

That kind of takes the point away from the loan and the people they donate them to probably wouldn't be able to afford gas and stuff (If they can't afford a car).

It's a great and nice idea but wouldn't work/happen.

 

[niky]

Pfft. Gas is cheap as chips right now. Wanna lay bets on depression-era banger races coming back into vogue?

 

[YSSMAN]

You mean like the 24 Hours of Lemons? Yes, its back in full-force.

...I don't know why we don't have a 24HL GTP Race team...

 

[niky]

I'll contribute towards buying the stickers.

 

[Keef]

They should give me a few of those cars. I don't think they'll miss them.

Agreed. Running out of room Ford/Toyota/Honda? I've got a little room in my driveway. I'll even come out to get one (or two) so you don't have to be bothered.

 

[Sniffs]

I agree. they have a glut at every manufacturer...and 75% of the people I know are running around in 15 year old 150k mile beaters because no-one can afford 30 grand minimum they want for an automobile nowadays.

 

[seckcimike]

I work in the ports for shipping company and we ship out atleast 300 cars a day before, and now 50-100 on a good day, thats how much we were affected. We actually just merge with another shipping company to combine costumers, so we dont close down. Nobody is buying cars, we dont ship cars, this is just a big domino effect.

 

[Philly]

Do we know why the auto companies are still building so many cars and not cutting back to meet demand more? I know it takes a long time to slow down the production of a line, but is it that slow that they have this many cars chilling around the world?

And when are they going to sell these? With the economy getting worse and worse, these cars are going to be around for a while, and nobody is going to want a model from a year or two ago without a huge discount.

 

[YSSMAN]

Do we know why the auto companies are still building so many cars and not cutting back to meet demand more? I know it takes a long time to slow down the production of a line, but is it that slow that they have this many cars chilling around the world?

Depends on who you're talking to. I know GM and Ford are eliminating shifts and entire production runs at some facilities, the line in Lansing that builds the Lambda trucks and the Corvette line in Kentucky (building the XLR) are two of the most-recent casualties. If no ones buying, no one should be building. Thats the long and short of the situation.

What worries me is that Congress is suggesting a buy-back program for used vehicles to promote the purchase of newer, more fuel-efficient cars and trucks. Good idea, to increase sales, but that absolutely destroys the used car market, and the income of millions of Americans who make a living selling used cars and trucks.

 

[gator of kana]

I think what the auto makers should have done is make cars more of a need than a want. That'll promote some business

 

[homeforsummer]

I think what the auto makers should have done is make cars more of a need than a want. That'll promote some business

Far be it from me to imply that economics might be slightly beyond you, I think you might not quite understand the subtle nuances of needs and wants. It's fair to say that a car, as a purchase, can be classified as a "need" for most people anyway. Simply by producing cars, manufacturers are catering for consumers' "needs".

To add to this however, manufacturers present a range of cars that then cater to the consumers' varying tastes, and these different designs and features are geared towards what the consumer wants (or what the manufacturer can make the consumer think they want, which is where marketing comes in).

Either way, a company can't make the car more of a "need" because they are already. However, those people who already have cars are now less inclined to replace them as it becomes uneconomical for them to do so. Couple this with a situation such as the high fuel prices last summer, and a manufacturer that survives on bread and butter cars that offer nothing special and maybe have high fuel consumption (step forward, Big Three) and you get stockpiling, because people make rational decisions based on their wallets instead of irrational decisions based on their "wants".

Only now, the market has slowed down so much that even marques like Land Rover and Jaguar (as in the images) have actually produced too much, when in the past they've struggled to meet demand.

[/economics 101]

 

[Jondot]

I think what the auto makers should have done is make cars more of a need than a want. That'll promote some business

Wow, if only there were people at Chrysler, GM and Ford with the degree of blue-sky thinking necessary to come up with an idea like that.

(Actually having said that, Chrysler can only dream of producing a car that somebody wants, let alone needs...)

 

[Tornado]

I want a new RAM...

 

[niky]

The problem of needs versus wants... most car models are differentiated by what customers want instead of what customers need. If the reverse were true, we'd all be driving around pre-combustion diesels with quarter-inch thick steel panels, drum brakes and leaf-springs. Waitaminute... I already do!

For the basic need of transportation, you don't need more than an engine, wheels and brakes. Everything else, seats, weather protection and airconditioning, are luxuries.

Once you start becoming more prosperous, you can justify those luxuries... and cars become more expensive... pretty soon, even "cheap" cars have all-electronic engine controls, electric windows and climate control.

Add in the cost of making cars legal for all markets... emissions control, crash safety, pedestrian safety... and your basic car in the western market nowadays is hardly "basic".

Sure, manufacturers still sell basic models, but people who have the money for something better will obviously go for the better car. The demand for cars people "want" instead of "need" was so great over the past few decades that the volumes involved were, quite frankly... huge... thus, when people ran out of money, the overruns...

 

[Jondot]

I want a new RAM...

(Actually having said that, Chrysler can only dream of producing a car that somebody wants, let alone needs...)

The Ram is a truck

Now all I have to do is convince you all that a Viper is a spaceship and then I'll be on my way.

 

[Philly]

On the topic of needs versus wants, the people who need a car go to the used car market. Those who want a car with a little extra will go new. That's why you don't see Joe Blow who has no money putting around in a 1980s Japanese oil refinery on wheels that's missing three body panels instead of a nice new Fit or something.

Promoting "the car" as a need would only end up driving people to the used car market and away from the new car market because going new is a luxury that nobody needs, no matter the car.