The number of cars trashed when Hurricane Sandy tore through the east coast is continuing to rise with dealers and automakers now estimating that roughly 250,000 vehicles were ruined.
Previous estimates suggested 200,000 cars were compromised during the storm. Now, automakers have reported some 16,000 new vehicles damaged in New Jersey and New York as a result of the cyclone. That number will grow more once General Motors and Ford announce their losses, but it isn’t clear by how much.
“We believe that between 100,000 and 250,000 vehicles currently in operation could be removed from used vehicle supply once all is said and done,” Laurence E. Dixon III, senior analyst with the National Automobile Dealers Association said to Reuters.
Meanwhile, Fisker reported losing more than $33 million in new vehicles – a loss that sparked a lawsuit that the automaker is now dropping. Fisker lost 338 of its plug-in hybrid Karmas and sued XLGroup, its insurer, after the automaker reportedly had problems collecting compensation for the damaged vehicles.
Nissan will scrap 6,000 new vehicles — the most of any automaker so far.
Every major car manufacturer is offering special deals on new cars to storm victims, but sales are still lagging. Despite that, retail volumes are predicted to turn around by late this year.