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(Zero Hedge)   Where unsold cars go to die   (zerohedge.com) divider line 86
    More: Fail, Citroen  
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6961 clicks; posted to Business » on 17 May 2014 at 3:41 PM (48 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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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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