/ Editors, News, Other, Sticky news / Where brand new cars go to die

Where brand new cars go to die

Linked In Share
Where brand new cars go to die

Hundreds of millions of brand new cars are left to rust in huge parking lots all over the globe after no one wants to buy them.

The 2014 world economy is slightly starting to come back to life after the economical crisis has hit it hard in the past few years. One of the most important industries on the globe, car manufacturing, is looking brighter than ever for some companies while others are struggling to survive by closing their factories and sending home thousands of people.

This happens because there are more products available than needed and usually when this takes place, prices go down. But no one is lowering brand new car prices and we all know that the vehicles we see in car dealerships these days will most likely be forgotten somewhere on a field. This is no joke because car companies prefer to do this than to sell them at lower costs and eventually make up for some of their loss.

A huge number of cars are being produced each year in Europe and in the United States and most of them never reach customers because there are no people who can or want to afford them. This has led to a whole new practice, that of huge parking lots filled to the brim. They occupy large hectares in different countries but most of them can be found on the “Old Continent” and in the “New World”.

A quick search on the web is showing us that the automotive industry prefers to use this trick to masque the weak demand for new cars and General Motors makes it to the first place, according to some reports. The estimates are showing that more than 10 billion cars, in perfect running condition, are currently used by the population. This basically means more vehicles than people and this is because most families own an average of two or even three cars.

Despite this, automakers keep producing and launching new units which have absolutely no chance of ever finding an owner who is willing to spend his / her money to buy them. Google Maps images posted below are showing tens of thousands of brand new and unsold cars parked near Sheerness, Corby or Northamptonshire, Swindon and Sunderland in the UK, in Civitavecchia port in Italy, in Baltimore and Maryland in the U.S., in the Valencia port in Spain or in Sankt Petersburg, Russia.

This information may come as a shock for most of you but all of it is true. Tens of thousands of brand new cars are being produced each week but only a small part of them manage to find new owners. The only reason for which car companies don’t sell them for a cheaper price is that if this would happen, chances are no one would ever buy a brand new car for the full cost of it and everyone will wait for the cost to go down.

This is a win-lose situation either way, mostly for car companies, because they can go bust if they don’t sell some of these models but they can also go bust if they do it for a significantly cheaper price. To try and cut down production costs, most carmakers have opened new facilities in China or India, where labor is cheaper. But what would happen when salaries will eventually go up over the following decade? Will the bubble burst again? Let’s hope not, because if the car industry goes down it will affect us more than we can imagine.

by Cristian Gnaticov (my Google+) - Friday, May 23rd, 2014 - filed under Editors, News, Other, Sticky news. Image credit: .
Linked In Share
Related Articles
brand new cars die new rust where cars go to die


Discuss: Where brand new cars go to die

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

Skoda Octavia RS Combi Diesel gets updated by mcchip-dkr
Skoda Octavia RS Combi Diesel gets updated by mcchip-dkrThe aftermarket specialists from mcchip-dkr have recently created an upgrade program for the diesel version of the new Skoda ...
Recall roundup: More than 200,000 Ford vehicles
Recall roundup: More than 200,000 Ford vehiclesFord has announced a recall which is covering more than 200,000 units because of a possible rusty fuel tank issue. A new recall ...
Lamborghini Huracan gets crashed in the Targa New Zealand Rally
Lamborghini Huracan gets crashed in the Targa New Zealand RallyA brand new Lamborghini Huracan has been crashed recently in the Targa New Zealand Rally. If you though that it is almost ...
Dacia Sandero RS with Renault badges looks good
Dacia Sandero RS with Renault badges looks goodA Dacia Sandero RS with Renault badges fitted to its body has been recently rendered and we have to admit that it looks way ...
Porsche Panamera Exclusive Series Edition goes official
Porsche Panamera Exclusive Series Edition goes officialPorsche has officially pulled the wraps off the Panamera Exclusive Series Edition which will be making its public debut at the ...
US: AAA says rear-view cameras can save lives
US: AAA says rear-view cameras can save livesWith winter approaching fast and the hours of light diminishing, pedestrian safety is among the concerns covered by recent AAA ...
Ford celebrates 25 years of Explorer with “#ExploreMore” social media campaign
Ford celebrates 25 years of Explorer with “#ExploreMore” social media campaignThe second-largest US automaker has another milestone to celebrate this year, following the half a century birthday of the ...
Customized McLaren P1 in China will make purists angry
Customized McLaren P1 in China will make purists angryA customized example of the McLaren P1 has been recently spotted out in China and its weird paintjob will be making purists ...
Mazda6 Coupe planned
Mazda6 Coupe plannedThe Japanese based automaker Mazda is currently planning the development of a new body style based on the Mazda6, the Mazda6 ...
FCA shares on the rise after Ferrari, capital movement news
FCA shares on the rise after Ferrari, capital movement newsThe stock of Fiat Chrysler Automobiles traded at a six-month high after shares jumped more than 18% following the recent ...
[VIDEO] Ferrari 458 Speciale vs. McLaren 650S vs. Porsche 911 GT3
[VIDEO] Ferrari 458 Speciale vs. McLaren 650S vs. Porsche 911 GT3A new video comparison is putting together three of the hottest supercars of the moment, the Ferrari 485 Speciale, the McLaren ...
Troller T4 Off-Road and T4 Rescue concepts unveiled in Sao Paulo
Troller T4 Off-Road and T4 Rescue concepts unveiled in Sao PauloTroller has officially presented to the public the T4 Off-Road and the T4 Rescue concepts during the 2014 Sao Paulo Motor Show, ...
Hyundai is planning its first hybrid model
Hyundai is planning its first hybrid modelSouth Korea's largest automaker is ready to expand its eco-friendly vehicle line-up, with Hyundai revealing it’s in the process ...
Recall roundup: Chrysler, Dodge and Jeep SUVs for two separate recalls
Recall roundup: Chrysler, Dodge and Jeep SUVs for two separate recallsThe Chrysler Group has recently issued two separate recalls for certain SUVs and pickup trucks which have been affected by two ...
This is the final Aston Martin One-77 produced
This is the final Aston Martin One-77 producedA small photo shoot is putting some light on the last Aston Martin One-77 which has been produced. The Aston Martin One-77 was ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

2015 Skoda Octavia RS Combi Diesel tuning mcchip-dkr 1
dacia sandero rs 1
Porsche Panamera Exclusive Series 1
mclaren p1 weird paintjob china romania flag 1
Troller-1
aston martin one-77 last produced 1
bmw i3 sr auto group wheels 1
2015 ford focus st uk 1
Hyundai HB20 R-Spec 1
Scion tC Release Series 90 1
Peugeot 208 Natural and 208 Urb Concepts 1
2015 nissan gt-r nismo 1

More automotive from inautonews
The aftermarket specialists from mcchip-dkr have recently created an upgrade program for the diesel version of the new Skoda Octavia Combi RS. The Skoda Octavia Combi RS Diesel can indeed become one hot ride and this is happening these days thanks to the German based tuning company called ...
read more
Inautonews Editors Section
Test Drive: Dacia Sandero Stepway 1.5 90 HP
Test Drive: Dacia Sandero Stepway 1.5 90 HPIf you live in Europe, you don’t need an introduction to Dacia anymore – this is the affordable Renault subsidiary that rocked the auto industry ...
Test Drive: Mercedes-Benz A180 CDI AT
Test Drive: Mercedes-Benz A180 CDI AT The new generation of the A-Class has been around since 2012 and its overall design is quite drastic, considering its predecessor. Now, two years ...
Test Drive: Citroen C-Elysee 1.6 HDi Exclusive
Test Drive: Citroen C-Elysee 1.6 HDi Exclusive Citroen has introduced the second generation of the C-Elysee last year. The model is smaller than the C4 and it is based on the Peugeot 301, being ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety Recall roundup: More than 200,000 Ford vehiclesFord has announced a recall which is covering more than 200,000 units because of a possible rusty ... US: AAA says rear-view cameras can save livesWith winter approaching fast and the hours of light diminishing, pedestrian safety is among the ...
Safety Section