The New Jersey Crash and Its Impact on the Car Industry
The New Jersey Crash and Its Impact on the Car Industry : While there’s no denying that Hurricane Sandy causes serious damage along its way, there’s one good thing that comes out of it – bringing out the best in people.
So while it caused enormous physical damage to property and enough business disruption to be considered the second most expensive Atlantic hurricane after Katrina, Hurricane Sandy unavoidably strengthened many people’s trust in their fellow human beings.
Like most industries, the automobile industry was also affected by the disaster. Many cars were flooded or flattened by trees during the height of the hurricane. So, what does that mean for the industry? Let’s take a closer look.
Another Look at Hurricane Sandy
While Hurricane Sandy started out as a Category 1 hurricane, it quickly became a Category 2 hurricane that devastated large parts of the Caribbean, Mid-Atlantic and Northeastern United States. It also affects Southeastern and Midwestern states to a slightly lesser degree. This horrific natural disaster caused $65.6 billion in losses and claimed the lives of 131 people across the United States.
However, Sandy’s disaster story is not limited to the United States. In fact, it wreaked havoc in six other countries, including Jamaica, Haiti, Dominican Republic, Puerto Rico, Bahamas and Canada where it also caused massive damage to lives and property.
Hurricane Sandy’s Impact on New Jersey
New Jersey was one of the states that took the worst hit from this natural disaster. For the record, more than 70,000 homes and businesses along the path of the storm were destroyed, about 2 million households were left without electricity and 34 people died during the storm.
In addition, New Jersey suffered an estimated $30 billion in business losses. It also experienced severe flooding, public transport closures and a serious gasoline shortage. As such, Governor Chris Christie has publicly declared this to be one of the worst disasters to have hit New Jersey to date.
Hurricane Sandy and the Car Industry
Due to heavy flooding and serious storm surge, many vehicles in the area were inevitably damaged. Official records show that more than 16,000 new cars in New York and New Jersey were destroyed while about 100,000 to 250,000 used cars needed to be disposed of.
While this figure seems quite high, it is still expected to rise after General Motors and Ford, the two largest automakers in the US, announced how many unsold vehicles were damaged in the recent disaster. Nissan, Toyota and Fisker also suffered significant losses from the disaster. Because of the severe damage caused by Hurricane Sandy, auto insurance companies are expected to pay about $250 million for New Jersey claims alone.
Hurricane Sandy may have left a devastating mark on New Jersey history but it will definitely take more than this to bring New Jersey down.
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