Exporting hurricane damaged “total loss” cars

An article in the Wall Street Journal (April 5, 2018) titled “Hurricane-Damaged Cars Moving Again as U.S. Exports”, describes the disposition of over 600,000 cars declared a “total loss” i.e., whose repair cost would exceed their replacement cost. These cars are sold by insurance companies at auctions and then exported. The result is a 12% increase in export volume of cars shipped via twenty foot containers (at 5 cars per container). These repaired cars then find a new life in overseas markets where they are either salvaged for parts or refurbished for use. The continued weather challenges suggests that this export increase may continue as the supply of damaged cars continues at a rapid pace. Should manufacturers of these vehicles intervene to salvage these vehicles in the US, or let them find their appropriate demand locations ? Should vehicle designs be expected to change to respond to the nature of the weather patterns in coastal regions ?

About aviyer2010

Professor
This entry was posted in Capacity, consumer, Cost, delivery, logistics, manufacturer, ship, Supply Chain Issues, Sustainability. Bookmark the permalink.

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