A half-million flooded cars and trucks could be scrapped after Harvey

Aug. 29, 2017

They seem to be in almost every picture or video of flooded neighborhoods in and around Houston.

There are scores of cars and trucks with water up to their windows and in some cases over the hood and roof.

In fact, the flooding is so extensive, Cox Automotive estimates a half-million vehicles may wind up in the scrap yard.

"This is worse than Hurricane Sandy," said Jonathan Smoke, chief economist for Cox Automotive. "Sandy was bad, but the flooding with Hurricane Harvey could impact far more vehicles."

After Hurricane Sandy battered New York and New Jersey in October 2012, an estimated 250,000 vehicles were scrapped.

While the New York metropolitan area has more residents than Houston, the number of vehicles per household is much higher in Houston.

Auto dealers are expecting a surge in business once Houston gets back on its feet.

Harvey to hurt, then lift U.S. auto sales: analysts

Aug. 29, 2017

DETROIT (Reuters) - Tropical Storm Harvey is likely to briefly depress already slowing U.S. auto sales, but could eventually help boost demand as damaged cars are replaced, analysts said on Tuesday.

The catastrophic flooding in Houston, the fourth-largest U.S. city, could mean 2 percent fewer vehicles will be sold in August than previously expected, according to Edmunds.com.

“In subsequent months we’ll likely see a slight localized bump in sales as the recovery takes hold and people are able to buy replacement vehicles,” said Jessica Caldwell, executive director of industry analysis at Edmunds, in a statement.

After Superstorm Sandy caused widespread flooding in the New York metropolitan area in 2012, “we saw all of those lost sales made up in the subsequent few months and then some because of replacements for vehicles destroyed and damaged,” Cox Automotive analyst Michelle Krebs said.

A sales rebound will depend on how quickly car owners file claims and the speed with which insurers process them, said Christopher Hopson, senior analyst at industry consultant IHS Markit.

“If the reaction is swift, we could start to see a pickup in sales as soon as late September or October,” he said.

Hopson said insurers’ swift response after Sandy in October 2012 fueled an almost immediate sales uptick.

Auto sales in New York in November 2012 rose 49 percent versus the previous year, according to Cox Automotive.

The Houston metropolitan market is the seventh largest in the United States, and ranks third in sales of large pickup trucks, which generate significant profits for the Detroit Three automakers, Krebs said.

General Motors Co, Ford Motor Co and Fiat Chrysler Automobiles NV went into August with hefty inventories of unsold pickups, and a post-storm sales bump could help clear out those trucks at higher prices.

Production at plants like Toyota Motor Corp’s San Antonio, Texas, truck factory and a large GM-operated SUV plant in Arlington, Texas, have been unaffected, the companies said.

First off, the overall design is a bit mixed in feeling. It looks very good, esp. the F Sport. But, it's not as overwhelming as I thought it would be. The design is almost conservative & I believe that's in part because we are now in an age where we are used to the 4-door, "coupe" design with that flowing roof line that extends to the rear and leaves little room for the trunk line. In fact, the curvature of the roof is almost Panamera-ish meets Audi A8 as one friend put it. I don't see much of the Audi, but I thought of the Panamera as well when I saw it from certain angles. Again, none of this is bad, it is a very stunning car. Just personal opinion, it has the overall feel of the XJ; another car with an extended roof line and aggressive front styling. I wouldn't be surprised if this is all intentional though. This market is very competitive and many cars from the Panamera to BMW's GT line seem to be going this direction of styling.

Interior wise, it's beautiful. The unique design on the F Sport seats is a nice touch. The "floating" handles that house the controls on the door with the ambient lighting compliments its goal of ultra luxury along side the gorgeous door inserts. Neither of our cars had the Kiriko Glass on the car, but the wood paneling is likely on the same level of craftsmanship. There's just a lot to take in, awe at, and see where Lexus really took the time to make this feel like a new generation of luxury saloons. Each seat has its own massage chair and the rear passengers have a hidden touch screen in the armrest that gives them almost total control of the car. Both cars had the new Mark Levinson 3D audio that has hidden speakers in the roof lining, but I didn't get a chance to experience them. Up front, the car has its own unique welcome display like the LC, but the layout is definitely interesting to see. The HUD display in one of the cars featured the new 24-inch option and it's absolutely insane to see, personally. I wish I had some proper seat time to see it work in action. Elsewhere, the car has adopted the transmission layout found in the LC & I always find it interesting that this is the route Lexus intends on returning to with the flagships. If you don't know, the transmission layout is a replica of the CT's; pull the lever to the left and then go up or down for Drive or Reverse. Hold for Neutral. It's easy to get used to, but I have seen folks caught off guard how to use it during their initial exposure. Another feature I found really interesting was the center console. It opens up to the left and right for easy access. Looking at it, it appears to be thanks to a couple clips that pop in and out allowing the hinge of the console door to open in either direction.

Navigation wise, I didn't get to experiment with & see what was new. The track pad is like the LC's, so it should be much easier to use. The rest of the interior is much like the LC as well. Very high quality to mark its high price tag. The little design display at the end of the dash in front of the passenger illuminates as well, so that's a nice touch. I didn't see much of the engine, but it's a bit hard to make final judgement on it due what we were told. At first glance, it's all your usual hard cover plastic. However, it looks a bit "refined" so it's not dull. It has a finish to it. However, there is a claim this could very well change for the production car. In regards to sound, it's ok. It's a bit hard to be amazed considering the model is going from a V8 to a TT V6. And of course, this not being a car built around noise anyway. Credit is due to its performance, though, with a reported 0-60 of 4.6 seconds. I got in a quick grunt and its engine is more responsive than the V8, so it where it may lack in excitement with its noise, it still has the power behind it.

Short driving impressions, it's a LS. It feels good, and is soft over our speed bumps. It's what you're probably expecting from a luxury car that sits just south of a $100,000 that's history starts with the iconic commercial of champagne glasses sitting on its hood.

Overall, it's a gorgeous car to take in on first glance. I don't think its exterior is exactly going to create the same dramatic response the LC got (which in fairness, the LC was never intended for production at conception, either), but I think the drive of the car is what will make the final decision to buy for clients because the interior alone, is where it truly shines on first impressions, because of the all new design & quality of it. I believe it is the first all-new body for the model since 2006 or so, so it's been a long time coming to get the flagship brought into the next generation.

Last words, model release is still expected around Feb.-March & pricing point was said to start at $75-80,000. The goal is assuming, to keep the LC as the head, low-production sports coupe in contrast. However, Lexus does not build its higher-tier models in base form outside of a personal build, so I would realistically expect pricing of $85,000+ with likely Premium, HUD, & another option or 2 built into every model.