Automakers have a big dilemma as new car sales have dropped over 50 percent since the coronavirus epidemic hit the U.S. and around the globe. Cars are stacking up at the ports as ships try to unload thousands of cars shipped from Japan and they have nowhere to put them. There is also a backlog of cars made in U.S. factories and dealers have no room on their lots to put the new arriving models.
Because the new all-wheel-drive models are stacking up at the Port of Brunswick, the Camden, N.J. automaker had to scramble to find a place to park them. Here is what Subaru of America (SOA) figured out to do with thousands of 2020 Forester, Crosstrek, and other models.
Subaru dealers don’t have room
Subaru just signed a lease agreement with the St. Marys Airport in Camden County, Georgia, paying them $95,000 a month to use the 280-acre site to park 30,000 Subaru vehicles at the vacant airstrip on the east coast. The new vehicles arriving from Japan are being offloaded at the Port of Brunswick and will be trucked to the location and the vehicles will be stored until dealers have room to take them.
The report says Subaru will provide fencing, security lighting, and a temporary construction trailer on the property and provide security to make sure the cars are safe until they can be moved. There are around 190 usable acres and the city will provide mowing and other maintenance-related tasks on the site before the cars arrive. Subaru has agreed to lease the property for three months expecting sales to increase soon.
Subaru dealers need to sell what they have first
Subaru isn’t the only automaker trying to figure out where to park unsold cars. The Japan Times reports a Nissan cargo ship carrying around 2,000 Nissan Armada SUVs, Rogue crossovers and Infiniti sedans were sitting in the port for almost a week before it could offload the cars.
A senior vice president for the U.S. unit of Norwegian shipping company Wallenius Wilhelmsen said, “This is different from anything we’ve seen before. Everyone is full to the brim.”
It could be a great time for shoppers to buy a new 2020 Subaru Forester, Crosstrek, Outback, or Ascent all-wheel-drive SUV. Subaru dealers are offering special incentives for car shoppers now.
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Denis Flierl has invested over 30 years in the automotive industry in a variety of roles. All of his reports are archived on our Subaru page. Follow Denis on Facebook, Twitter, Instagram, Subaru Report. Check back tomorrow for more Subaru news and updates at Torque News!
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Photo credit: Subaru Canada