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(Zero Hedge)   Where unsold cars go to die   (zerohedge.com) divider line 86
    More: Fail, Citroen  
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6958 clicks; posted to Business » on 17 May 2014 at 3:41 PM (27 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



86 Comments   (+0 »)
   
View Voting Results: Smartest and Funniest
 
2014-05-17 01:32:56 PM  
Interesting find, subby.
 
2014-05-17 01:49:32 PM  
Your blog sucks.
 
2014-05-17 02:25:46 PM  
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.

Why not just link to it?

Also there is no way that this is even remotely true.

/blog sucks
 
2014-05-17 02:28:46 PM  
I'm having a hard time swallowing this. How could the manufacturers afford to continue producing millions of cars that are never going to be sold? Why would they want to? Unless there is some super-secret government program that is financing all of this as a way to try to avoid economic collapse, it makes absolutely no sense. The existence of such a program, not only in one country but in ALL car-making countries, strains the limits of credulity.
 
2014-05-17 02:48:15 PM  
There is a large car staging area south of Philadelphia that looks much like these pictures.  Funny thing is, from one month to the next, all the cars have changed color, model, or have otherwise somehow been altered to hide the evidence of this dastardly scheme, most likely to make it look like they're simply on their way to somewhere else.

This conspiracy must be truly breathtaking in scale.
 
2014-05-17 02:50:17 PM  
sslimgs.xkcd.com

These cars sell regularly. But not instantaneously. So it's standard for them to sit a few months first.
 
2014-05-17 02:51:31 PM  
The writing on this website just keeps piling up.  Dozens of the same sentences just crammed together back to back and left to rot on the world's internets.
 
2014-05-17 02:51:50 PM  

Marcus Aurelius: There is a large car staging area south of Philadelphia that looks much like these pictures.  Funny thing is, from one month to the next, all the cars have changed color, model, or have otherwise somehow been altered to hide the evidence of this dastardly scheme, most likely to make it look like they're simply on their way to somewhere else.

This conspiracy must be truly breathtaking in scale.


There was one on the tide flats of Tacoma when I lived there as well.  Just a warehouse for cars, basically.  Someone's bog sucks.
 
2014-05-17 02:59:31 PM  
Fark is pretty resourceful, show me the other car lots like this and I'll believe.
 
2014-05-17 03:01:49 PM  
Bullsh*t.
 
2014-05-17 03:21:12 PM  

whistleridge: [sslimgs.xkcd.com image 500x271]

These cars sell regularly. But not instantaneously. So it's standard for them to sit a few months first.


http://www.businessweek.com/articles/2013-07-31/american-automobile- gl ut-unsold-cars-are-piling-up

http://www.theguardian.com/business/gallery/2009/jan/16/unsold-cars

http://live.wsj.com/video/detroit-unsold-cars-pile-up/277564BC-64A4-4 B 6A-81E4-8EDF115C3459.html#!277564BC-64A4-4B6A-81E4-8EDF115C3459
 
2014-05-17 03:21:24 PM  

Marcus Aurelius: There is a large car staging area south of Philadelphia that looks much like these pictures.  Funny thing is, from one month to the next, all the cars have changed color, model, or have otherwise somehow been altered to hide the evidence of this dastardly scheme, most likely to make it look like they're simply on their way to somewhere else.

This conspiracy must be truly breathtaking in scale.


this
funny how people find madness wherever they look for it.
 
2014-05-17 03:21:52 PM  

Benevolent Misanthrope: Marcus Aurelius: There is a large car staging area south of Philadelphia that looks much like these pictures.  Funny thing is, from one month to the next, all the cars have changed color, model, or have otherwise somehow been altered to hide the evidence of this dastardly scheme, most likely to make it look like they're simply on their way to somewhere else.

This conspiracy must be truly breathtaking in scale.

There was one on the tide flats of Tacoma when I lived there as well.  Just a warehouse for cars, basically.  Someone's bog sucks.


Look, man. Alls I know is that I checked it out on Google Earth one day, and a week later the cars are still there exactly as they were. It was even the same  time of day, despite the fact I checked it when it was midnight over there.

Clearly, this conspiracy breaks even the laws of time and space.
 
2014-05-17 03:22:21 PM  

Bob Falfa: whistleridge: [sslimgs.xkcd.com image 500x271]

These cars sell regularly. But not instantaneously. So it's standard for them to sit a few months first.

http://www.businessweek.com/articles/2013-07-31/american-automobile- gl ut-unsold-cars-are-piling-up

http://www.theguardian.com/business/gallery/2009/jan/16/unsold-cars

http://live.wsj.com/video/detroit-unsold-cars-pile-up/277564BC-64A4-4 B 6A-81E4-8EDF115C3459.html#!277564BC-64A4-4B6A-81E4-8EDF115C3459


it would be more interesting to see a historical chart with number of unsold new cars in the US by year ...
 
2014-05-17 03:33:57 PM  
http://online.wsj.com/news/articles/SB10001424127887323401904578159601 729569798

oh look, this article is a repeat from dec 2012 and pretty much every month of every year.
car makers have 60-70 sales days inventory at any point in time

LOL of course, that is an average and crappy american cars have a lot more backed up.
WHY did marketing think that they would sell so many of their crappy cars?
LOL

img.fark.net
 
2014-05-17 04:03:08 PM  
That was a strange article from Zerohedge.  Not once did they tie this to Obozo's Magic Money Printing Press.
 
2014-05-17 04:06:22 PM  
So if lots of those cars were stolen then nobody would notice?

There are probably thousands of people with the job of moving inventory cars around the block so that the engines don't corrode out.

If there are lots like this with cars older than 2 years then that would confirm a problem. Or if some number of these cars end up as cubes instead of at dealerships.
 
2014-05-17 04:22:47 PM  
They're called staging lots. Factories own large chunks of land and park cars on them so the shipping companies/railroads/boats can move on to the next step. If said transit companies are delayed (like record snowfalls), the lots fill up and car companies rent extra space or wholesale at a slightly reduced price to dealers within short driving distances.

Right outside Toledo, there is a huge lot of Jeep Wranglers. Clearly no one is buying them because there is literally a 2 order cycle waiting list to get stock Wranglers for dealerships, despite the factory running 24 hours a day, 6 days a week on all lines.

Zerohedge reports on things it doesn't understand. Film at 11.
 
2014-05-17 04:34:03 PM  
I think I recall seeing some of those pictures from after cash for clunkers.
 
2014-05-17 04:34:30 PM  

Snarcoleptic_Hoosier: They're called staging lots. Factories own large chunks of land and park cars on them so the shipping companies/railroads/boats can move on to the next step. If said transit companies are delayed (like record snowfalls), the lots fill up and car companies rent extra space or wholesale at a slightly reduced price to dealers within short driving distances.

Right outside Toledo, there is a huge lot of Jeep Wranglers. Clearly no one is buying them because there is literally a 2 order cycle waiting list to get stock Wranglers for dealerships, despite the factory running 24 hours a day, 6 days a week on all lines.

Zerohedge reports on things it doesn't understand. Film at 11.


Also in the UK we have date based number plates that change every six months so sales spike every time the date code on the number plates changes. So those car parks are often overflow ready for when the registration changes.

Some one needs to understand the industry better.
 
2014-05-17 04:36:04 PM  
The pictures are neat, but the writing is garbage.

This is like the Playboy Magazine of blogs.
 
2014-05-17 04:50:58 PM  

Marcus Aurelius: There is a large car staging area south of Philadelphia that looks much like these pictures.  Funny thing is, from one month to the next, all the cars have changed color, model, or have otherwise somehow been altered to hide the evidence of this dastardly scheme, most likely to make it look like they're simply on their way to somewhere else.

This conspiracy must be truly breathtaking in scale.


This, to some degree.

8 years ago, I was sitting in a large lot, like the ones pictured, in Oshawa, Ontario, with a crew of techs and a small army of college students hired to re-flash our radios in the few-thousand GM vehicles that had rolled off the assembly lines, ready to ship to dealers. We were fixing a potential power-draining bug in the car stereo, and we were "Campaign 74" - yes, 73 other vendors had preceded us in updating/making fixes AFTER the cars had rolled off the assembly lines. I had a bit of a sunburn after the first day, on my calves, from leaning into vehicles all day to connect our equipment to the OBDII port and flash... remembered to wear copious amounts of sunscreen the next day. The car and radio were pretty much "fresh" - nothing had yet been delivered to dealers.

At any rate, within a week, every single one of those cars had been delivered to a customer.
 
2014-05-17 04:51:19 PM  

poot_rootbeer: The pictures are neat, but the writing is garbage.

This is like the Playboy Magazine of blogs.


I only read zerohedge for the pictures. It just happens to have those articles too.
 
2014-05-17 04:59:57 PM  
This writer is a farking moran.  He has no idea what he is looking at.  Auto manufacturers and shipping companies have huge mixing lots where they queue cars up for shipment out to dealers via train or truck.  Cars rarely go straight from the line to the dealer.  The cars are actually already sold to the dealer once it leaves the line.  I know this from working in the auto industry for years and years and years.
 
2014-05-17 05:01:19 PM  

Snarcoleptic_Hoosier: They're called staging lots. Factories own large chunks of land and park cars on them so the shipping companies/railroads/boats can move on to the next step. If said transit companies are delayed (like record snowfalls), the lots fill up and car companies rent extra space or wholesale at a slightly reduced price to dealers within short driving distances.

Right outside Toledo, there is a huge lot of Jeep Wranglers. Clearly no one is buying them because there is literally a 2 order cycle waiting list to get stock Wranglers for dealerships, despite the factory running 24 hours a day, 6 days a week on all lines.

Zerohedge reports on things it doesn't understand. Film at 11.


This.  Already covered.  Sorry for the redundancy.  Well done.
 
2014-05-17 05:06:21 PM  
BS
Zerohedge really does pick some great financial topics, then, unfortunately, proceeds to analyze the shiat out of them.
 
2014-05-17 05:23:37 PM  

poot_rootbeer: The pictures are neat, but the writing is garbage.

This is like the Playboy Magazine of blogs.


Playboy has bad writing? I mean, Playboy has writing?
 
2014-05-17 05:28:24 PM  
Zero hedge? I find more reliable writing on the American Spring websites.
 
2014-05-17 05:30:41 PM  

mod3072: I'm having a hard time swallowing this. How could the manufacturers afford to continue producing millions of cars that are never going to be sold? Why would they want to? Unless there is some super-secret government program that is financing all of this as a way to try to avoid economic collapse, it makes absolutely no sense. The existence of such a program, not only in one country but in ALL car-making countries, strains the limits of credulity.


It probably has something to do with Corporate finance. A $40,000 car can be kept on the books as an asset, selling it for $30,000 would mean taking a loss as far as the books are concerned. Even though common sense says its better to get $30,000 than to let $40,000 rot away. They may keep building them for multiple reasons, one of which is various labor rules or just lag in the supply chain, it's not like they can just stop making them 1 day because all the parts would still come in and so forth up the supply chain, restarting would be just as painful.
 
2014-05-17 05:38:18 PM  
OMG ITS A CONSPIRACY THOSE DODGE DURANGOS IN MARYLAND ARE FOUR YEARS OLD LAST GENERATION.  ALIENS.

/yer blog sucks
 
2014-05-17 05:39:45 PM  
I suggest the book My Mercedes Is Not For Sale. It's about the phenomenon of taking cars nobody feels like driving on European roads anymore, roadtripping to Africa in them, selling the car and then flying home.

Africa essentially has no standards regarding the cars they get other than 'can it handle driving in Africa without getting torn to shiat, and when it inevitably breaks down, can you slap it back together without too much hassle'. You run cars there till they don't run no more.

This is what I was guessing before I clicked the link.
 
2014-05-17 05:47:26 PM  
On the west side of lansing there's a lot like this.  But the turn time on it is pretty much monthly.  This article is stupid.  Factories produce more vehicles in a single run than they can ship in that same timeframe.  SURPRISE.
 
2014-05-17 06:12:08 PM  

Marcus Aurelius: There is a large car staging area south of Philadelphia that looks much like these pictures.  Funny thing is, from one month to the next, all the cars have changed color, model, or have otherwise somehow been altered to hide the evidence of this dastardly scheme, most likely to make it look like they're simply on their way to somewhere else.

This conspiracy must be truly breathtaking in scale.


Some of the local dealers near me use one of the airport long term parking lots for the same.  It always has about the same number of cars in it, but over time they all change.
 
2014-05-17 06:19:23 PM  

Lt_Ryan: mod3072: I'm having a hard time swallowing this. How could the manufacturers afford to continue producing millions of cars that are never going to be sold? Why would they want to? Unless there is some super-secret government program that is financing all of this as a way to try to avoid economic collapse, it makes absolutely no sense. The existence of such a program, not only in one country but in ALL car-making countries, strains the limits of credulity.

It probably has something to do with Corporate finance. A $40,000 car can be kept on the books as an asset, selling it for $30,000 would mean taking a loss as far as the books are concerned. Even though common sense says its better to get $30,000 than to let $40,000 rot away. They may keep building them for multiple reasons, one of which is various labor rules or just lag in the supply chain, it's not like they can just stop making them 1 day because all the parts would still come in and so forth up the supply chain, restarting would be just as painful.


The customers aren't the customers of the manufacturers, the dealers are.  The dealers buy the cars from Ford, GM, Toyota, etc (though oftentimes the dealers will 'floor plan' with the manufacturer's captive bank, which basically means the dealers finance the cars through the manufacturer to ease up on up-front expense).

Eventually all of the cars will sell. The longer they sit however the more incentive money the manufacturer typically has to put on the hood to keep the dealers from complaining too loudly. At a certain point though the dealer takes full ownership of the car and the manufacturer washes their hands of the situation completely - that two year old new car is now the dealer's problem.
 
2014-05-17 06:23:08 PM  
Brought to you by the same "supply and demand" rich dicks who own the world's economy and everything else.


it's clear they don't practice what they preach.
 
2014-05-17 06:30:48 PM  

hinten: BS
Zerohedge really does pick some great financial topics, then, unfortunately, proceeds to analyze the shiat out of them.


Do you think they could analyze the shiat out of a constipated dog?  The poor thing hasn't crapped in 2 days
 
2014-05-17 06:31:52 PM  
farm8.static.flickr.com
 
2014-05-17 07:18:28 PM  
I remember these pictures from a few years ago, during the worst of the recession. I think it was 2010 or 11.
 
2014-05-17 07:19:14 PM  
Such is capitalism.   Surpluses are bad.

Well, we can't just give them away, now can we?
 
2014-05-17 07:25:55 PM  
Love that bit of derp at the end of GM importing vehicles from China.

Nevermind that GM exports from the US to China, and its locally produced models are different than what is sold here.
 
2014-05-17 07:34:35 PM  
You would see this with just about every non-perishable product, but there are walls and roofs blocking your view.  And more middleman destinations for the products to live for a while.
 
2014-05-17 07:34:56 PM  

Smeggy Smurf: hinten: BS
Zerohedge really does pick some great financial topics, then, unfortunately, proceeds to analyze the shiat out of them.

Do you think they could analyze the shiat out of a constipated dog?  The poor thing hasn't crapped in 2 days


Give it Kaopectate and Ex-Lax at the same time. That'll confuse the shiat out of it.
 
2014-05-17 07:53:15 PM  
To be fair, it might not be as bad as the article makes it out to be, but it has happened in the past and may still happen. The most famous example is Chrysler's "Sales Bank", where they did exactly what the article talks about in the 1970s.
 
2014-05-17 07:57:06 PM  

Linux_Yes: Brought to you by the same "supply and demand" rich dicks who own the world's economy and everything else.


it's clear they don't practice what they preach.


Article writer saw some aerial shots of vehicle staging areas, and pulled a story completely out of his ass to describe what he's seeing. Next time read the thread before commenting.
 
2014-05-17 08:00:58 PM  

namatad: WHY did marketing think that they would sell so many of their crappy cars?


The cars that aren't selling - with the exception of the Malibu - are subcompacts.  The automakers have to produce a certain number of them to keep their CAFE number low enough for the NHSTA and EPA, regardless of whether or not they sell.  If they don't move, they heavily discount them and sell them to fleet buyers.
 
2014-05-17 08:03:48 PM  
Strange that in almost every picture the rows of cars are only two deep,allowing individual cars to be driven away without being blocked by others. Almost as if they expect individual cars to be driven away soon and don't want them blocked by others....

And storage areas next to ports? What could that mean? It couldn't possible mean that ships contain thousands of cars but once on land they are transported by trucks that can only carry eight per trip and so dispersal takes time, could it?
 
2014-05-17 08:10:49 PM  
So they lower the value of all cars by selling them and instead make them into scrap?    I can't buy a new car for 20 years, or it seems that way.  Why not sell them cheap to someone like me and let me get rid of my 17mpg old truck.
 
2014-05-17 08:39:48 PM  

rev. dave: So they lower the value of all cars by selling them and instead make them into scrap?    I can't buy a new car for 20 years, or it seems that way.  Why not sell them cheap to someone like me and let me get rid of my 17mpg old truck.


Because it's not just "extra" buyers like you who will buy them. The first buyers will be those would would have otherwise have bought a new car at full price. The extra income from buyers like you will not cover the income lost from the lost full price sales.
Then there is the knock on effect. If they don't sell these cars at half price or whatever you would have bought a secondhand car from someone else, who had bought new. Now he will have to drop his asking price because all his buyers will have bought these cheap new cars, depressing the resale value of that model. Now few buyers will want to pay full price ever again because the resale value is so bad. So they will start to build up unsold inventory again and have to repeat the process...

The worst thing any business can do is start to have fire sales. Their customers will now expect them and wait for them, and those prices will become the effective standard price.
 
2014-05-17 08:52:48 PM  

I would guess they may have been taken away and recycled to make room for the next vast production run.


Your blog sucks.
 
2014-05-17 09:31:58 PM  
You sheeple don't understand the magnitude of this conspiracy. When the time comes, these 'ghost' vehicles will be 'inhabited' by an army of alien drivers from the mothership that is currently orbiting on the opposite side of the Sun. Millions of hostile, levitating Chevy Cruzes will then bombard our major cities, dropping alien 'death-poison', that will not actually kill you, but render you speechless and cause your genitals to mutate. You wait and see.
 
2014-05-17 10:05:26 PM  
I fly out of an airport next to a big Toyota factory. You know they're nearing a shipment when the test track starts getting used to park cars.

A week later they're all gone. According to TFA, to some magical and heretoforth undiscovered site. I always assumed they got put on the gigantic trains they're right next to.
 
2014-05-17 10:47:16 PM  
Snarcoleptic_Hoosier: Zerohedge reports on things it doesn't understand. Film at 11.

You misunderstand - they're fully aware of staging lots, holding periods, and so on. They're just hoping that their readers aren't, because that allows them to push their site's narrative.

Zerohedge isn't stupid. Zerohedge is evil.
 
2014-05-17 10:50:23 PM  

Hector Remarkable: You sheeple don't understand the magnitude of this conspiracy. When the time comes, these 'ghost' vehicles will be 'inhabited' by an army of alien drivers from the mothership that is currently orbiting on the opposite side of the Sun. Millions of hostile, levitating Chevy Cruzes will then bombard our major cities, dropping alien 'death-poison', that will not actually kill you, but render you speechless and cause your genitals to mutate. You wait and see.


Thanks Obama!
 
2014-05-18 12:41:30 AM  

Hector Remarkable: You sheeple don't understand the magnitude of this conspiracy. When the time comes, these 'ghost' vehicles will be 'inhabited' by an army of alien drivers from the mothership that is currently orbiting on the opposite side of the Sun. Millions of hostile, levitating Chevy Cruzes will then bombard our major cities, dropping alien 'death-poison', that will not actually kill you, but render you speechless and cause your genitals to mutate. You wait and see.


That's actually pretty close to the other conspiracy theory I've seen about these lots, one which is stupider than this one.  One of Alex Jones' various idiot acolytes found a couple of these places on Google Earth and most of the cars appeared white because of some coverup the manufacturers apply for shipping.  So of course, they were UN cars being dropped off to aid Obama in the Big UN Takeover.
 
2014-05-18 12:42:54 AM  
So, the theory is that (assuming you buy the assumption this is true) hoarding vehicles nobody wants is going to somehow affect the sales of vehicles people do want.

Apparently this alleged journalist thinks the auto companies are the DeBeers cartel.
 
2014-05-18 01:28:28 AM  

Smeggy Smurf: hinten: BS
Zerohedge really does pick some great financial topics, then, unfortunately, proceeds to analyze the shiat out of them.

Do you think they could analyze the shiat out of a constipated dog?  The poor thing hasn't crapped in 2 days


Feed it pumpkin. the canned kind. itll get things moving.
 
2014-05-18 02:44:54 AM  
Wow, this article writer completely fails to understand basic capitalism.  Do they really think that car manufacturers would spend money to continuously build cars for which there is no demand?  Did the world go communist while I wasn't paying attention?

That, or this whole thing is bullshiat pulled out of someone's ass.
 
2014-05-18 04:06:12 AM  
Lsherm: namatad: WHY did marketing think that they would sell so many of their crappy cars?

The cars that aren't selling - with the exception of the Malibu - are subcompacts.  The automakers have to produce a certain number of them to keep their CAFE number low enough for the NHSTA and EPA, regardless of whether or not they sell.  If they don't move, they heavily discount them and sell them to fleet buyers.


Quite possible.

One of the reasons sports cars are so absurdly expensive compared to a regular car is there are certain environmental and safety standards you don't have to meet if you sell less than a certain number of units, so they have to sell less than a certain number of units to be able to make it the way they want, so the easiest way to only sell a certain number of units and no more is to price it out of regular people's budgets.
 
2014-05-18 04:26:59 AM  
There is this huge warehouse a few miles from me, it has got to be at least a square mile in size. If you go into this warehouse you will see it is bulging with racks that go all the way up to the ceiling. And each of these racks are filled to the brim with every type of food item you can imagine. Canned peaches, yep it's there. Pickles, yep they are there. It goes on and on and on. And there are thousands and thousands of these warehouses across the country. My question is why do food manufacturers keep producing food 24/7 if we have these warehouses that are stocked with food just sitting there?
 
2014-05-18 04:29:55 AM  
ongbok: There is this huge warehouse a few miles from me, it has got to be at least a square mile in size. If you go into this warehouse you will see it is bulging with racks that go all the way up to the ceiling. And each of these racks are filled to the brim with every type of food item you can imagine. Canned peaches, yep it's there. Pickles, yep they are there. It goes on and on and on. And there are thousands and thousands of these warehouses across the country. My question is why do food manufacturers keep producing food 24/7 if we have these warehouses that are stocked with food just sitting there?

Because top men are working on it.
 
2014-05-18 05:02:20 AM  

gaslight: Interesting find, subby.


Thank you.
 
2014-05-18 05:07:39 AM  
It's so sad:
 
2014-05-18 05:09:35 AM  
Now with pic:

fbcdn-sphotos-g-a.akamaihd.net
 
2014-05-18 05:18:05 AM  

Oldiron_79: Lsherm: namatad: WHY did marketing think that they would sell so many of their crappy cars?

The cars that aren't selling - with the exception of the Malibu - are subcompacts.  The automakers have to produce a certain number of them to keep their CAFE number low enough for the NHSTA and EPA, regardless of whether or not they sell.  If they don't move, they heavily discount them and sell them to fleet buyers.

Quite possible.

One of the reasons sports cars are so absurdly expensive compared to a regular car is there are certain environmental and safety standards you don't have to meet if you sell less than a certain number of units, so they have to sell less than a certain number of units to be able to make it the way they want, so the easiest way to only sell a certain number of units and no more is to price it out of regular people's budgets.


The easiest way is to limit production runs. Which is how companies do it.

The price is just what they think people will pay.
 
2014-05-18 07:02:30 AM  

whistleridge: These cars sell regularly. But not instantaneously. So it's standard for them to sit a few months first.


You provided a Link to somewhere in your statement, therefore it must be true!
 
2014-05-18 08:47:09 AM  

Summoner101: Now with pic:


Now that one is a case of cars being made when there were no buyers. JZD just had the factory going flat out to look good to the press and potential investors.
 
2014-05-18 08:54:24 AM  
Fake...that was just the Disney World parking lot.
 
2014-05-18 09:03:51 AM  

Gosling: I suggest the book My Mercedes Is Not For Sale. It's about the phenomenon of taking cars nobody feels like driving on European roads anymore, roadtripping to Africa in them, selling the car and then flying home.

Africa essentially has no standards regarding the cars they get other than 'can it handle driving in Africa without getting torn to shiat, and when it inevitably breaks down, can you slap it back together without too much hassle'. You run cars there till they don't run no more.


A similar sort of thing happens in the far east, only with used Japanese cars.  As I understand it, their inspection laws and registration system are set up so that the registration taxes are low for the first few years, then start climbing quickly after about five years.  So it's usually quite expensive to drive a car older than 6 or 7years old - at that point, it's cheaper to buy a new one, so that's what people do (although there does seem to be a thriving collector scene, so there must be an exemption for older cars that don't get a lot of mileage) .  It's passed off as a measure for protecting the environment and promoting vehicle safety, but it's pretty much universally understood to be a giveaway to the auto industry.
 

So as a result, every year Japan finds itself with thousands of used cars that are perfectly roadworthy yet practically unuseable.  But rather than being scrapped, most of them end up on barges, destined to be sold all over the Pacific rim.  I understand they're particularly popular in Australia, New Zealand, and Hong because they drive on the left, but a lot of them get sent to far-eastern Russia and various places in Africa as well.
 
2014-05-18 09:11:23 AM  

Robo Beat: Gosling: I suggest the book My Mercedes Is Not For Sale. It's about the phenomenon of taking cars nobody feels like driving on European roads anymore, roadtripping to Africa in them, selling the car and then flying home.

Africa essentially has no standards regarding the cars they get other than 'can it handle driving in Africa without getting torn to shiat, and when it inevitably breaks down, can you slap it back together without too much hassle'. You run cars there till they don't run no more.

A similar sort of thing happens in the far east, only with used Japanese cars.  As I understand it, their inspection laws and registration system are set up so that the registration taxes are low for the first few years, then start climbing quickly after about five years.  So it's usually quite expensive to drive a car older than 6 or 7years old - at that point, it's cheaper to buy a new one, so that's what people do (although there does seem to be a thriving collector scene, so there must be an exemption for older cars that don't get a lot of mileage) .  It's passed off as a measure for protecting the environment and promoting vehicle safety, but it's pretty much universally understood to be a giveaway to the auto industry.

So as a result, every year Japan finds itself with thousands of used cars that are perfectly roadworthy yet practically unuseable.  But rather than being scrapped, most of them end up on barges, destined to be sold all over the Pacific rim.  I understand they're particularly popular in Australia, New Zealand, and Hong because they drive on the left, but a lot of them get sent to far-eastern Russia and various places in Africa as well.


The UK system is weird. The annual car tax is based on exhaust emissions, so newer cars tend to be cheaper. But cars built before 1974 are tax free....
 
2014-05-18 09:33:08 AM  

Robo Beat: Gosling: I suggest the book My Mercedes Is Not For Sale. It's about the phenomenon of taking cars nobody feels like driving on European roads anymore, roadtripping to Africa in them, selling the car and then flying home.

Africa essentially has no standards regarding the cars they get other than 'can it handle driving in Africa without getting torn to shiat, and when it inevitably breaks down, can you slap it back together without too much hassle'. You run cars there till they don't run no more.

A similar sort of thing happens in the far east, only with used Japanese cars.  As I understand it, their inspection laws and registration system are set up so that the registration taxes are low for the first few years, then start climbing quickly after about five years.  So it's usually quite expensive to drive a car older than 6 or 7years old - at that point, it's cheaper to buy a new one, so that's what people do (although there does seem to be a thriving collector scene, so there must be an exemption for older cars that don't get a lot of mileage) .  It's passed off as a measure for protecting the environment and promoting vehicle safety, but it's pretty much universally understood to be a giveaway to the auto industry.
 

So as a result, every year Japan finds itself with thousands of used cars that are perfectly roadworthy yet practically unuseable.  But rather than being scrapped, most of them end up on barges, destined to be sold all over the Pacific rim.  I understand they're particularly popular in Australia, New Zealand, and Hong because they drive on the left, but a lot of them get sent to far-eastern Russia and various places in Africa as well.


I knew some Nigerian guys who grew up in Japan because their fathers were exporters who exported used Japanese cars and parts back to Nigeria and other countries in Africa. These guys were pretty damn rich.
 
2014-05-18 09:46:03 AM  

Hector Remarkable: You sheeple don't understand the magnitude of this conspiracy. When the time comes, these 'ghost' vehicles will be 'inhabited' by an army of alien drivers from the mothership that is currently orbiting on the opposite side of the Sun. Millions of hostile, levitating Chevy Cruzes will then bombard our major cities, dropping alien 'death-poison', that will not actually kill you, but render you speechless and cause your genitals to mutate. You wait and see.


I would like to learn more. Please contact me via your mental telepathy devices. Also, bring beer.
 
2014-05-18 09:47:13 AM  

Oldiron_79: ongbok: There is this huge warehouse a few miles from me, it has got to be at least a square mile in size. If you go into this warehouse you will see it is bulging with racks that go all the way up to the ceiling. And each of these racks are filled to the brim with every type of food item you can imagine. Canned peaches, yep it's there. Pickles, yep they are there. It goes on and on and on. And there are thousands and thousands of these warehouses across the country. My question is why do food manufacturers keep producing food 24/7 if we have these warehouses that are stocked with food just sitting there?

Because top men are working on it.


Which men?
 
2014-05-18 09:58:16 AM  

nytmare: Linux_Yes: Brought to you by the same "supply and demand" rich dicks who own the world's economy and everything else.


it's clear they don't practice what they preach.

Article writer saw some aerial shots of vehicle staging areas, and pulled a story completely out of his ass to describe what he's seeing. Next time read the thread before commenting.



nytmare: Linux_Yes: Brought to you by the same "supply and demand" rich dicks who own the world's economy and everything else.


it's clear they don't practice what they preach.

Article writer saw some aerial shots of vehicle staging areas, and pulled a story completely out of his ass to describe what he's seeing. Next time read the thread before commenting.



oh, look, another Republican who can't face Reality.    go smoke your bong, loon.

your banker buddies and their criminal wall street friends are running things into the ground, in spite of Obama's efforts.

you should be proud, crony capitalist.
 
2014-05-18 10:07:14 AM  

Flint Ironstag: Robo Beat: Gosling: I suggest the book My Mercedes Is Not For Sale. It's about the phenomenon of taking cars nobody feels like driving on European roads anymore, roadtripping to Africa in them, selling the car and then flying home.

Africa essentially has no standards regarding the cars they get other than 'can it handle driving in Africa without getting torn to shiat, and when it inevitably breaks down, can you slap it back together without too much hassle'. You run cars there till they don't run no more.

A similar sort of thing happens in the far east, only with used Japanese cars.  As I understand it, their inspection laws and registration system are set up so that the registration taxes are low for the first few years, then start climbing quickly after about five years.  So it's usually quite expensive to drive a car older than 6 or 7years old - at that point, it's cheaper to buy a new one, so that's what people do (although there does seem to be a thriving collector scene, so there must be an exemption for older cars that don't get a lot of mileage) .  It's passed off as a measure for protecting the environment and promoting vehicle safety, but it's pretty much universally understood to be a giveaway to the auto industry.

So as a result, every year Japan finds itself with thousands of used cars that are perfectly roadworthy yet practically unuseable.  But rather than being scrapped, most of them end up on barges, destined to be sold all over the Pacific rim.  I understand they're particularly popular in Australia, New Zealand, and Hong because they drive on the left, but a lot of them get sent to far-eastern Russia and various places in Africa as well.

The UK system is weird. The annual car tax is based on exhaust emissions, so newer cars tend to be cheaper. But cars built before 1974 are tax free....


Most, if not all, of the States have collector- or antique-status registration available to cars older than a certain number of years, usually 25.  I think the idea is that if a car is that old and still roadworthy, it's probably a collector piece that's not being driven much, so its impact on road wear and pollution is negligeable.  It's kind of like how pre-1974 cars don't have to display a tax disc, but it's usually a rolling date and generally you get a special number plate and exemption from inspection requirements.

Where I grew up (Ohio), collector-registration plates were available for cars over 25 years old, for a one-time fee of maybe $10 (versus a much larger annual fee for normal registration), and IIRC you didn't have to take it in for the biennial smog test if you lived in a county where that was required.  But as a tradeoff, you had to keep it under a certain annual mileage limit - around 5,000 miles, I think.  Such cars were quite rare where I lived - usually restored sports cars that only left their respective heated and locked garages on sunny weekend afternoons.  There was a guy in my neighborhood that had them on a beautiful Porsche 356, for instance.  Anything that got any real use usually rotted away around 10 years from all the salt they spread on the roads in the winter.
 
2014-05-18 11:06:15 AM  

spawn73: Oldiron_79: Lsherm: namatad: WHY did marketing think that they would sell so many of their crappy cars?

The cars that aren't selling - with the exception of the Malibu - are subcompacts.  The automakers have to produce a certain number of them to keep their CAFE number low enough for the NHSTA and EPA, regardless of whether or not they sell.  If they don't move, they heavily discount them and sell them to fleet buyers.

Quite possible.

One of the reasons sports cars are so absurdly expensive compared to a regular car is there are certain environmental and safety standards you don't have to meet if you sell less than a certain number of units, so they have to sell less than a certain number of units to be able to make it the way they want, so the easiest way to only sell a certain number of units and no more is to price it out of regular people's budgets.

The easiest way is to limit production runs. Which is how companies do it.

The price is just what they think people will pay.


Actually Porsche and a few others just pay the fine for not meeting the standards.  The fine is based per unit, so if you have a luxury brand or produce a low number of cars it's easy to roll the fine into the price of the car.
 
2014-05-18 11:24:55 AM  

Lsherm: spawn73: Oldiron_79: Lsherm: namatad: WHY did marketing think that they would sell so many of their crappy cars?

The cars that aren't selling - with the exception of the Malibu - are subcompacts.  The automakers have to produce a certain number of them to keep their CAFE number low enough for the NHSTA and EPA, regardless of whether or not they sell.  If they don't move, they heavily discount them and sell them to fleet buyers.

Quite possible.

One of the reasons sports cars are so absurdly expensive compared to a regular car is there are certain environmental and safety standards you don't have to meet if you sell less than a certain number of units, so they have to sell less than a certain number of units to be able to make it the way they want, so the easiest way to only sell a certain number of units and no more is to price it out of regular people's budgets.

The easiest way is to limit production runs. Which is how companies do it.

The price is just what they think people will pay.

Actually Porsche and a few others just pay the fine for not meeting the standards.  The fine is based per unit, so if you have a luxury brand or produce a low number of cars it's easy to roll the fine into the price of the car.


Hah yeah, I can see why they would do that. 122USD is nothing when its luxury cars.

Another reason manufacturers limit numbers is to make them exclusive. Thus driving up the price.
 
2014-05-18 11:30:42 AM  

Robo Beat: Flint Ironstag: Robo Beat: Gosling: I suggest the book My Mercedes Is Not For Sale. It's about the phenomenon of taking cars nobody feels like driving on European roads anymore, roadtripping to Africa in them, selling the car and then flying home.

Africa essentially has no standards regarding the cars they get other than 'can it handle driving in Africa without getting torn to shiat, and when it inevitably breaks down, can you slap it back together without too much hassle'. You run cars there till they don't run no more.

A similar sort of thing happens in the far east, only with used Japanese cars.  As I understand it, their inspection laws and registration system are set up so that the registration taxes are low for the first few years, then start climbing quickly after about five years.  So it's usually quite expensive to drive a car older than 6 or 7years old - at that point, it's cheaper to buy a new one, so that's what people do (although there does seem to be a thriving collector scene, so there must be an exemption for older cars that don't get a lot of mileage) .  It's passed off as a measure for protecting the environment and promoting vehicle safety, but it's pretty much universally understood to be a giveaway to the auto industry.

So as a result, every year Japan finds itself with thousands of used cars that are perfectly roadworthy yet practically unuseable.  But rather than being scrapped, most of them end up on barges, destined to be sold all over the Pacific rim.  I understand they're particularly popular in Australia, New Zealand, and Hong because they drive on the left, but a lot of them get sent to far-eastern Russia and various places in Africa as well.

The UK system is weird. The annual car tax is based on exhaust emissions, so newer cars tend to be cheaper. But cars built before 1974 are tax free....

Most, if not all, of the States have collector- or antique-status registration available to cars older than a certain number of years, usually ...




I live in Ohio and historic plates are available to any car over 25 years old, but the plate is for the purpose of exhibiting the vehicle, not for daily driving. I see those plates on the most rusted out POS beaters that no car show would ever allow to enter (except to show how much rust a car can have and still hold together).
 
2014-05-18 11:36:02 AM  

whistleridge: [sslimgs.xkcd.com image 500x271]

These cars sell regularly. But not instantaneously. So it's standard for them to sit a few months first.


This, lots of areas have large storages of cars that are used to replenish the stocks when the initial ones are sold. Very few car manufacturers make cars to order, so they have to go somewhere. I used to go past thousands of them on the way to work back in the 90s.
 
2014-05-18 11:47:27 AM  

poot_rootbeer: The pictures are neat, but the writing is garbage.

This is like the Playboy Magazine of blogs.


With much less interesting pictures
 
2014-05-18 11:52:07 AM  
I always wonder in the MSO is kept with the vehicle when they're stored in those big lots.
If so, I wonder how easy it would be to get the vehicle out of there and legally titled.
 
2014-05-18 12:14:59 PM  

Nick Nostril: Oldiron_79: ongbok: There is this huge warehouse a few miles from me, it has got to be at least a square mile in size. If you go into this warehouse you will see it is bulging with racks that go all the way up to the ceiling. And each of these racks are filled to the brim with every type of food item you can imagine. Canned peaches, yep it's there. Pickles, yep they are there. It goes on and on and on. And there are thousands and thousands of these warehouses across the country. My question is why do food manufacturers keep producing food 24/7 if we have these warehouses that are stocked with food just sitting there?

Because top men are working on it.

Which men?


Top. Men.
 
2014-05-18 02:38:38 PM  

buzzcut73: I always wonder in the MSO is kept with the vehicle when they're stored in those big lots.
If so, I wonder how easy it would be to get the vehicle out of there and legally titled.


Usually not and extremely difficult. The C of O is mailed separately to the dealership and BMV agencies require that the certificates be submitted with the appropriate paperwork (odometer, title application, sales tax form, certificate of emissions compliance, statement of lienholder's equity, and titling applicant's identification that matches on both address and social security number). C of Os also have to be notarized and provide a state dealer's license number (it helps with catching tax evasion - if a large number of vehicles get registered from a dealership without statement of sales tax paid forms, it's audit time).

The physical vehicle would probably be the easiest part of that whole endeavor, because if you have time and bolt cutters, you might be able to get one off of a truck at a rest stop (the keys are usually shipped with the vehicle). The legal crap isn't difficult to fill out, but you have to know how to package and prepare it, along with some very good guesses or access to private information.

If title fraud is your thing, you're better off getting a car with outstanding claims or title issues, taking it to another state, forging some documentation, and requesting a new title because you "lost the old one". Pay the charge it takes to issue a new, clean title and sell the car to a sucker "as is".
 
2014-05-18 02:46:49 PM  
I knew I had seen the pics before, but I was a year off, it was 2009.

http://jalopnik.com/5135675/where-are-automakers-stashing-unsold-car s
 
2014-05-18 02:55:14 PM  
Snarcoleptic_Hoosier:

If title fraud is your thing, you're better off getting a car with outstanding claims or title issues, taking it to another state, forging some documentation, and requesting a new title because you "lost the old one". Pay the charge it takes to issue a new, clean title and sell the car to a sucker "as is".

Heh. I had a dealer do that to me once. Sold me a previously wrecked Blazer that they'd shipped down to MO, retitled it there, and then shipped it back with the now clean MO title. This was before Carfax was a really big thing, so it went unnoticed for about a year, then I was trying to trade it and a different dealer caught it.

A couple of phone calls from a lawyer threatening to expose their shady practices by way of a lawsuit was all it took for a full refund on the purchase price of the Blazer.

As far as the C of O thing, I didn't figure they'd be so stupid as to keep all of the documents with the vehicle, but hey, I've heard of companies doing dumber shiat.
 
2014-05-18 05:44:49 PM  
I want the red one in the middle!
 
2014-05-18 10:43:50 PM  
Gone are the days when the family would have a new car every year

When and where were those days?
 
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