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(Zero Hedge)   Where unsold cars go to die   (zerohedge.com) divider line 36
    More: Fail, Citroen  
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6956 clicks; posted to Business » on 17 May 2014 at 3:41 PM (17 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2014-05-17 04:22:47 PM
7 votes:
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 02:51:31 PM
5 votes:
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 02:48:15 PM
5 votes:
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 02:28:46 PM
5 votes:
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 04:59:57 PM
4 votes:
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 01:49:32 PM
4 votes:
Your blog sucks.
2014-05-17 08:03:48 PM
3 votes:
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 02:50:17 PM
3 votes:
sslimgs.xkcd.com

These cars sell regularly. But not instantaneously. So it's standard for them to sit a few months first.
2014-05-18 01:28:28 AM
2 votes:

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.
2014-05-17 10:47:16 PM
2 votes:
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 05:47:26 PM
2 votes:
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 04:50:58 PM
2 votes:

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 04:34:30 PM
2 votes:

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 03:21:52 PM
2 votes:

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 03:21:12 PM
2 votes:

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 02:25:46 PM
2 votes:
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
2014-05-18 02:38:38 PM
1 votes:

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 12:14:59 PM
1 votes:

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 11:06:15 AM
1 votes:

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 09:58:16 AM
1 votes:

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 04:26:59 AM
1 votes:
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 02:44:54 AM
1 votes:
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 12:42:54 AM
1 votes:
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.
2014-05-17 10:05:26 PM
1 votes:
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 09:31:58 PM
1 votes:
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 08:52:48 PM
1 votes:

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 08:00:58 PM
1 votes:

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 07:57:06 PM
1 votes:

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 06:23:08 PM
1 votes:
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 05:39:45 PM
1 votes:
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 05:38:18 PM
1 votes:
OMG ITS A CONSPIRACY THOSE DODGE DURANGOS IN MARYLAND ARE FOUR YEARS OLD LAST GENERATION.  ALIENS.

/yer blog sucks
2014-05-17 04:34:03 PM
1 votes:
I think I recall seeing some of those pictures from after cash for clunkers.
2014-05-17 04:03:08 PM
1 votes:
That was a strange article from Zerohedge.  Not once did they tie this to Obozo's Magic Money Printing Press.
2014-05-17 03:01:49 PM
1 votes:
Bullsh*t.
2014-05-17 02:51:50 PM
1 votes:

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 01:32:56 PM
1 votes:
Interesting find, subby.
 
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