Imported Cars Sitting Idle By The Thousands In Dealership Lots

LONG BEACH, Calif. -- Gleaming new Mercedes cars roll one by one out of a huge container ship here and onto a pier. Ordinarily the cars would be loaded on trucks within hours, destined for dealerships around the country. But these are not ordinary times.

For now, the port itself is the destination. Unwelcome by dealers and buyers, thousands of cars worth tens of millions of dollars are being warehoused on increasingly crowded port property.

And for the first time, Mercedes-Benz, Toyota, and Nissan have each asked to lease space from the port for these orphan vehicles. They are turning dozens of acres of the nation's second-largest container port into a parking lot, creating a vivid picture of a paralyzed auto business and an economy in peril.

Read the whole story here.

Comments

[ponderingmuch]

I like the idea of renting these out, parked, as homes for people who can no longer afford RENT, let alone mortgages.

[Sloane7]

Like it or not, we are a powerful nation must be able to manufacture our own cars. The idea of a Big 3 bailout sounds hideous but the alternative is worse. Doesn't matter how you do it, combine them, cap CEO wages, whatever, but come on, no US cars?

[ceasenake]

"whatever" ? Even (GASP - que sound of sacred cow crashing to the ground with arterial spurt ala "Apocalypse Now" water buffalo slaughter scene) cutting over-inflated union wages, pensions and benefits?

[BillMelater]

Over-inflated? You must already have yours, eh neocon?

http://billmel8er.wordpress.com

[MIKEBC]

MORE REPUBLICAN HARD TIMES, GOP DEPRESSION #2, PEOPLE HAVE A HARD TIME THINKING ABOUT A NEW CAR WHEN THEY ARE NOT SURE IF THEY WILL BE ABLE TO MAKE THEIR NEXT HOUSE MORTGAGE PAYMENT.

[cylindar]

that's show biz!

[2liveNdie]

I see future jobs for those who want to wash and detail these idle cars

[CanuckDemocrat]

I, for one, believe that some sort of bridge loan or bailout of the Big Three is a necessary evil right now. Not to reward past mistakes, but to save the MILLIONS of jobs that directly rely on the auto sector. Why are banks entitled to $700 billion, but the automakers can't get even 5% of that? Something stinks here.

There have to be very serious strings attached to this, but too many jobs are at risk. What could be more stupid and short-sighted than allowing millions of jobs to die at a time of the worst crisis in the last 80 years? How does that make any sense? Paulson is doling out BILLIONS to his investment banking cronies with NO OVERSIGHT, yet people cry foul that the automakers want some too. What the automakers did for the past 30 years was pure stupidity, whereas the investment banking industry's actions in the mortgage crisis and financial derivatives market are likely criminal.

Why is Paulson not being investigated and watched? The guy is a fromer CEO of Goldman Sachs, do we have any question as to his loyalties here? He's doling out billions to cover the criminal decisions of his banker buddies, and no one is saying a word. But the Big Three wants 5% of that amount and is told to go away? WTF

[Emlyn]

I'm wondering if any of the $700 billion bailout will be left by the time Obama becomes President. Paulson says he's going to wait for the next administration. What is he going to do in the meantime? Where is that money?

[BillMelater]

It has been rumored that George Bush would throw support behind helping the Big 3 if they can the UAW. If this is fact, then I can only see more dark days on the horizon.

Was this financial crisis and bailout and freezing of credit all a big elaborate scheme to rid the country of union once and for all?

Do the neocons hate America so much that they would throw it into a depression just to tie the hands of a duly elected progressive President?

The depths of the evil at work here seem to know no bound.

http://billmel8er.wordpress.com

[JBS]

CanuckDemocrat sez: "I, for one, believe that some sort of bridge loan or bailout of the Big Three is a necessary evil right now. Not to reward past mistakes, but to save the MILLIONS of jobs that directly rely on the auto sector. Why are banks entitled to $700 billion, but the automakers can't get even 5% of that? Something stinks here"

Part of the problem is the example of the banks who are getting the bailout. Remember the promise to buy up the "toxic mortgages" so the banks could start loaning money again?

Instead the banks are using the bail-out for divedends, bonuses, golden parachutes and mergers & acquisitions.

Why should we believe the Big 3 auto companies would be any different?

[vjthedj]

There are way too many cars than people. The cars that are out now, are impractical when it comes to gas mileage. Only hybrids are going to be the evolutionary future with either complete hydrogen or electric. I think cars just like the housing market are going to sit around for a while. Noone has money, they will depreciate fast. October is when they have to have sales to move them out for next years model. I don't think it will happen.

[AZdesertdog]

impractical for fuel economy? my '99 Buick Park Avenue (V-6) always averages between 31-33 MPG on the highway. and a Camry gets what?

in case you haven't noticed, no one wants expensive, complex hybrids in the world of $2.00 (or less) gasoline. Prius models (you know, the ones that are "sold out") here in the Phoenix area are sitting 40-60 deep on lots.

[CaptD]

I would be happy to park one in front of my house as long as I could drive it...

[TheJibreelaMonsters]

ah just like 1978 all over again

Jimmy Carter's 2nd term

[drkazmd65]

And with the same people to blame for it,... OPEC, US Oilmen (and their Bushian toadies), an energy 'crisis, government overspending on foreign military conflicts, and a previous Republican administration,...

I wish President Obama well on completing Jimmy Carter's 2nd term,...

[KillTheMessenger]

"I wish President Obama well on completing Jimmy Carter's 2nd term,..."

Just because it's 30 years late does not mean that we can't start where Jimmy Carter had to stop. We are going to have to pay a price, for sure, but that's what you do when you are full of it...

[ccpostman]

Looks like a line of foreclosed houses.

S u c k it up big three. It is hard for everyone now, not just you!

[LRM216]

I don't think you are correct in assuming that dealers and buyers do not want the autos. No one can get any credit - that is the big problem. No matter if your credit is great or so-so, the Bank's are just sitting on their money - don't want to lend it. Wasn't this part of the reason for this wonderful bailout??

[iambusto]

the banks are smart. they dont want to give losers and deadbeats any credit. Would you ?

[AZdesertdog]

yup, real smart! do you even have a clue what you are talking about???

in case you didn't know, folks in the vicinity of 750 FICO scores are having difficulty getting credit. since 750+ FICO scores are less than 4% of the total population, I guess this means they are "losers and deadbeats" too, right?

[Calinative]

250 million cars in the US. Only 200 million drivers.

Every driveway is full. We simply have enough cars already. When demand returns, the field should be wide open for some new American car companies that are building better cars.

[Viper]

This is a mature industry that requires dealer networks, training programs and massive economy of scales to be competative..

Stop with the nonsense of new start ups... this is MFG, heavy duty where it takes 5 years to bring a product to market., where their are long term warranties and 10 years parts requirement. not silcone valley start ups. How many people are going to buy a 30K durable product from a start up? LOL. Or one from a company in Bankruptcy?

The lack of any understanding of the differences is amazing.

If they fold, its good bye U.S.

Regards

[KillTheMessenger]

If they fold we can finally cut this eternal ball and chain off our feet and start buying the cars we need.

Cheers.

[Calinative]

If it's been done before, it can be done again. And the U.S. will still be here. The sky isn't falling.

[Chavez08]

Japanese companies deserve to suffer along. Since Republicans opened the floodgate 20 years ago to allow Asia to DUMP all their products on us while jacking anti-American tariffs sky-high on THEIR end, U.S. autos have gotten a raw deal.

Although the Big-3 did need a kick in the ass to increase productivity and quality, Republicans won't be happy until there is no Middle-class left and we are all working for next to nothing.

But, hey, don't believe me, GOPS own actions or even their written words, listen to Fox News, they're the mouthpiece for the working-class and they'll make you prosperous.

[DuganS1]

Japanese dumping cars? Should the govt force consumers to pay more for Japanese cars so we, in effect, subsidize the higher pay and huge amount of benefits for GM, Chrysler, and Ford workers and retirees? If I want to buy a Japanese car, I'd like to pay as little as possible and certainly don't want the government taking more money out of pocket to do so.

[AZdesertdog]

boy, it would be nice if there was someone here who remotely knew what they were talking about.

first, all Japanese companies were dumping vehicles (selling for less than cost0 for all their vehicles thru the mid 80's. the only thing that stopped them were Congressional investigations. at this time, Japanese factories in the US really multiplied.

second, it's rather difficult to find a Prius in the $25K range. the MSRP on over 50% is in the $28-30K range. in case you didn't know, Jim Press, who spent his entire adult life at Toyota (until last year), really blew the wizard's curtain back when he said the Japanese government was subsidising Toyota's hybrids.

guess that makes Japan "socialist", right?

[KillTheMessenger]

At $25k Toyota is certainly not dumping their Prius. It's just what you have to pay to get a good car for the era of expensive oil. And it's worth every penny.

:-)

[tomas0808]

The whole thing has been unsustainable for a long time. Most people don't want to buy a new car every two years, and Detroit basically counted on it. Dumb

[phil28]

I called 2 Toyota dealers looking to buy a Highlander Hybrid close to factory cost. One salesperson (Toyota Carlsbad) said I'd be lucky to get a 5% discount and a second told me these cars are in such demand that I could buy it at retail with no markup. (Their inventory showed 15 of the cars sitting on their lot).

[Viper]

Well, the price they are sold here is half of what they sell for in Japan in its protected market! Duh. Toyota shows no profit ever on its U.S. sells. The price is kept low to gain market share. They have run up large debt.

They dump and lowering the price any more makes it just way too obvious. US cars stunk in the 80s. They stunk in the 90s. They are damn good today. GM/Ford have more hybrids and lower Fleet MPG.

Regards

[KillTheMessenger]

Neither GM nor Ford have a single real hybrid. The only two real hybrids in the market are the Prius and the Honda Civic hybrid. Everything else is an expensive battery pack added to a standard vehicle and a green paint job.

Cheers.