It’s a sign of the times.
Unsold cars arriving at Long Beach - Image by NYT
Long Beach, California, America’s second largest port is under siege from unsold cars. Day after day, thousands of cars roll off container ships, normally destined for dealerships around the country. But with the car industry in crisis, they’re going nowhere.
A whole bunch of car makers, including several Japanese makers and Mercedes Benz (all normally big sellers in the US) are queueing up to lease space at the port to house the unsold cars.
The problem is, car manufacturers are not geared up for quick changes in order volume. Their order book is placed months ahead, and the downturn has been vicious and quick. So the dealers who would normally take these cars have nowhere to keep them, as they’re all sat on unsold stock. So they all have to sit somewhere once they arrive, and the port is the only sensible place. Toyota, for example, has leased a whole 6 acres just to store cars, and is looking for more.
It’s a similar story in the UK, with unsold cars piling up at ports around the country. But if you can afford it, there’s never been a better time to buy. Just think of the deal you’ll get!
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