Hi Don,
Insurance companies that insure floorplan must come out and inspect each damaged car.
If water gets into the inside of the car and the DERM's [Diagnostic energy reserve modules) - the minin batteries that fire off an airbag explosion] the cars will be:
First:donated to educational facilities accross the country
Second: taken to a salvage yard and crushed so that no components will EVER reach main commerce.
Here's a good article with Harvey's iimpact:
If these were enough, Hurricane Harvey dented thousands of new vehicles that were in dealership lots, according to a new analysis from Edmunds. These new cars and trucks perhaps “have to be scrapped” as per the CEO of AutoNation.
The car-shopping website estimates that Harvey affected 366,000 new vehicles across Texas and several of these are high-profit trucks and SUVs, causing trouble for automakers, as per the source. This is especially true given Texas is the second-largest market for U.S. auto sales, making up about 9% of all retail states.
In fact, Texas is the top sales market for Ford F, General Motors’s GM GMC and Cadillac, Fiat Chrysler’s FCAU Ram and Mitsubishi brands, as per an article published on Fox Business (read: ETFs in Focus Post Automobile Earnings).
CNBC went on to note that Houston – ravaged by Harvey – is a key contributor to Texas auto sales, accounting for about 40% of total, with over 500 dealerships.
Since vehicles inventory will now be heavily hurt, potential sales for August will likely be 2% less, as per Edmunds. Sales decline could run into early September too. A Citi analyst reduced his estimate for the rate of monthly auto sales in August. He foresees Harvey messing up about 125 counties in Texas and about 60% of the state's auto sales.
And AutoNation’s CEO estimates that “Harvey disruptions will reduce the overall auto industry August sales rate by between 100,000 and 300,000 units.”
Bob |
