Unsold Foreign Makes Getting Stocked Up At Our Ports
Tens of thousands of foreign built cars are shipped through American ports every month, destined for dealerships across the country. However, much like American car makers, many foreign nameplates are having a tough time selling their products, with unsold vehicles stacking up at ports and nearby lots in record numbers.
It isn’t just the less popular brands that are not selling their vehicles. Both Mercedes and Toyota are reporting record inventories of unsold cars, trucks, crossovers, minivans and other passenger vehicles, models which normally would sell quite well when the economy is sound. With more than 500,000 people losing their jobs last month and credit being very difficult to obtain, demand for new cars has plunged to a level not seen in decades.
When cars are imported into the country, they usually sit in port for a few days before being moved out. Now, automakers are asking port owners for more time to keep their vehicles on port lots and have even turned to leasing additional acreage to house their vehicles. California ports in Long Beach and Los Angeles are brimming with cars, forcing automakers to look elsewhere for space even outside of the state to warehouse their cars.
According to Reuters, San Diego is also seeing increased demand for port space, with Honda, Volkswagen, and Mitsubishi vehicles each needing more space. Ports on the east coast are experiencing similar problems, with port owners reporting record demand for storage space. The good news for port owners and those who process imported vehicles is that demand for their business is off-setting a drop elsewhere – some businesses expect to break even in what has been a very difficult year.
As inventories continue to rise, production overseas is likely to be scaled back in order to keep inventories at much more manageable levels. That move has been delayed so far as automakers are attempting to avert lay offs and plant shut downs, steps that could put additional pressure on local economies as more workers lose their jobs and the global economy continues to slide deeper into recession.
Likely, we’ll see a continual build up at our nation’s ports for the next month or so until the reality of job loss and unavailable credit forces foreign car makers to stop sending vehicles stateside that will only languish in our ports and in leased lots.
Photo Credit: Arnav Sud
Matthew C. Keegan is a freelance writer who resides in Cary, North Carolina. Matt is a contributing writer for Andy’s Auto Sport an aftermarket supplier of quality parts including driving lights and light tubes.
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Hi! Nice article.. just a little correction. The name is Sud. Arnav Sud.
Thank you, Arnav! I corrected the spelling of your name (my apologies) and I appreciate you lending to me the photo — nice work.
Happy 2010 too!
Anytime Matt! Keep writing!