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Sandy's Used-Car Impact (11/19/12)

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Tags:

  1. auto show3:26
  2. GM2:24, 3:00, 3:15
  3. SAIC2:21
  4. Hurricane Katrina0:58
  5. new Orleans1:01
  6. auto maker2:30
  7. middle class2:50
  8. joint venture2:20
  9. Florida1:38

Mon, 19 Nov 2012|

In echo of Katrina, superstorm churns up prices, AutoNation luxury outlet, General Motors steps up China's cheap-car race.

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Automatically Generated Transcript (may not be 100% accurate)

Cause and effect. Superstore insanity is history but the damage it left behind is now impacting the used car market. We'll tell you how that. Welcome back on this Monday. I'm Tom -- back. We all saw the video. Heavy rainfall and windy weather whipped up by super storms -- Ravaging tens of thousands of vehicles along the eastern seaboard. With most of those cars rendered useless and folks needing replacement. Some analysts are now predicting prices for used vehicles already in tight supply in the region. Will rise a thousand bucks or more. Many of the use rides are being shipped in from across the country and that is driving -- cost us. The industry saw a similar pattern after Hurricane Katrina submerge parts of new Orleans back in 2005. By the way used vehicle prices are typically at their lowest levels during this time of year. AutoNation sells lots of used cars and it operates 27 value vehicle outlets in the US. Those stores specialize in selling older less expensive and used cars. Now the nation's largest dealership group wants to replicate the process with the luxury vehicles. The company opened its first premium vehicle outlet in May. A pilot operation at a Mercedes store in Pompano Beach, Florida. That there are guidelines the vehicle must be seven years or older have more than 70000 miles on it. In the price range has to be between 151030000. Dollars. AutoNation says early results are encouraging. CEO Mike Maroney is all the cars would have -- wholesale in the past. So every dollar is an incremental dollar. In every customer. Is an incremental customer. Buyout giant in the English it means treasured horrors. It's also the name of GM's low cost brand in China. In other brand as a new stable if you will. This weekend through its joint venture with SAIC in -- motors GM opened a second factory for about drug. With the new plant in southern China the US auto maker is turning up the heat on its rivals. John sells cars priced as low as 6400. Dollars in their aimed at first time buyers. Much of the competition in China is focused on the cheaper end of the market. Were four and led joint ventures are targeting the emerging middle class. No frills program such as -- minutia are even putting pressure on local manufacturers. Like geely and cherry. But GM has something else in its -- Recent anti Japan protests in China have boosted sales by US auto makers. In October while Japan's automakers -- lower sales than that country. GM saw a 14%. Inquiries. And that is our time for today tomorrow morning -- worship. Or laying down the law at the LA auto show archived -- -- usually play. These sort of back here tomorrow afternoon.

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