Mazda Destroys $100M worth of cars

[1SICKLEX]

http://link.brightcove.com/services/link/bcpid452319854/bctid1527642616

[NevrNufTorq]

couldnt believe that boat laying on its side!!! :eek:

[Kamikaze]

That's some hardcore quality control right there.

[Roadster]

Such a waste. :(

[BlkCD5]

smart move.

[DESTRO_91]

My car escaped the fate of the others.

[VtakFluid]

why?

[Hondizzle!]

Thats so stupid. Those cars could have been put to good use at Tech schools and whatnot. I know my school had a huge shortage of cars to do live work on. What a waste.

[Captain-Obvious™]

the guy said they couldn't risk any of them being sold in any way because it could damage their credibility. But still...what a waste

[Kevykev]

Thats so stupid. Those cars could have been put to good use at Tech schools and whatnot. I know my school had a huge shortage of cars to do live work on. What a waste.

What the Mazda Rep. explained made sense, a large scale corporation can go under from a simple "harmless" decision like that.

Probability is low but it exists so that's enough to scrap it.

Still ultimately a waste indeed.

[_Christian_]

I'd think for way less than $100million, they could send a crew of people to inspect every single car. I don't know what could be wrong other than flood damage (probably not) or body damage, either would be very obvious. BMW had a similar incident, but only crushed cars that were totaled. BMW will also disclose all the damage to the new owners.

[Kevykev]

I'd think for way less than $100million, they could send a crew of people to inspect every single car. I don't know what could be wrong other than flood damage (probably not) or body damage, either would be very obvious. BMW had a similar incident, but only crushed cars that were totaled. BMW will also disclose all the damage to the new owners.



At that point, you'll be placing the Integrity or your corporation in the hands of a third party.

But for the most part, it's not about the "right and wrong" way to do things it more so about the unsafe, safe, safer or safest solution.

Those companies are fully insured so it's not that big of a loss.

[Hondizzle!]

Yeah I definitely understand the reputation point of view. Thing is though, with a tech school buying the vehicles, they can never be sold again. They are a direct tax write off, after the school is done with them... they MUST be crushed to conform with laws. Not that its any big deal or anything, Im sure Mazda was just looking for the safest way to go about it.

[Ricer]

i don't blame mazda one bit... sure its a waste.. but why risk any possible repercussions from just one of those cars malfunctioning somehow and killing someone? the company would never recover from something like that ..collect the insurance check sell the scrap metal and move on

[_Christian_]

At that point, you'll be placing the Integrity or your corporation in the hands of a third party.
No need for a third party, Mazda employs more than enough with these capabilities.

But for the most part, it's not about the "right and wrong" way to do things it more so about the unsafe, safe, safer or safest solution. Those companies are fully insured so it's not that big of a loss.
I'm not sure of their insurance plan, but I wouldn't think they would cover cars than are listed by the adjusters as "undamaged." You don't need to explain why they made the decision, I saw the video. Just making the point that it could be/has been done.

[Kevykev]

When you said "a crew of people" I naturally thought 3rd party.


You don't need to explain why they made the decision, I saw the video. .

was that a smart ass comment?

if so :lmfao: @ you



No one can fully explain the specifics of why Mazda made that decision unless we were on the board.

Most "I" or "we" can do is hypothesize.

[OneDurtyZ]

in a world without fcuking lawyers they would have donated those cars to good causes. You can thank lawyers for mazda having to destroy them.

[Iawa]

couldnt believe that boat laying on its side!!! :eek:
Lol

[JITB]

:( :( :cry: :cry: :cry:

[Just_CHill]

Wow......

[Ronsam2006]

damn that sucks...

[_Christian_]

No one can fully explain the specifics of why Mazda made that decision unless we were on the board.
They do provide an explanation as to "why". As for "fully explaining" I agree that only those "on the board" or "in the know" have the specifics. I think you kind of missed the point of my post, but it's all good.:D

[ThAixGuYx2k7]

Wow... that really sucks for Mazda.

[Frög]

The 100 million reflect what they could of sold the cars for, not what cost them to make it.. as usual, the story has a bit of exaggeration. Assuming it cost them ~5000$ to make each car, the total is probably closer to 20 million dollars which is in fact covered by insurance..

I think this is a really good business move, most likely, the cars have no issues, but why take a risk of 4700 cursing customers? Not only does this cost Mazda nothing, its also really good and FREE publicity..

whether its from their insurance, or the freight's insurance, its covered. If Mazda deems that the cars cannot be sold because of this incident, then they are "totaled" by definition. All Mazda had to do is prove that the cars were "total losses". The insurance company even paid for the dismantling and crushing process.

Quoted from wall street journal:
"Mazda declined to put a price tag on the demolition, which was covered by insurance. The company says all its insurance claims have been settled."

Not to mention, if the cars do have issues that appear later, Mazda has to cover it with their warranty. It will cost them money instead..

If they have flood damage, title issuance and insurance would be hell! Some insurance companies wont insure flooded cars and some states wont issue titles..

Regardless, if the cars were sold and had any issues, the brand would be blamed first.. its better to save the hassle and the reputation of the company..

only a few parts of the cars were dismantled, and the rest was scraped.. Might you ask WHY? The answer is that when manufacturing a car, the actual parts are cheap, the assembly and labor is expensive.. So dissembling every car and reassembling it would be economically unfeasible.. DUH!!

so, final verdict: Good business Practice!

[SixSquared]

Sucks to see all those cars destroyed, as I'm sure there would have been ways around it.. IE selling the cars for parts or off road use only, with no title, yadda yadda.

However Mazda should take it as a compliment that so many people (probably a majority of them being private parties) called wanting the wrecked ones... If it had been a bunch of wrecked kias, I doubt they would have gotten the race/drift/use calls lol.

Smart and quick business move, but they probably could have put some more time into it and found a way to sell off some of them. But, time is money, so they cut their losses.

[dkjohnson04]

that really sucks!!

[AnthonyF]

if some people DID NOT CARE about the condition of the car, Mazda could have created a contract so they would be safe. Who cares if the car was used for demo or racing. That wouldnt affect the credibility of their cooperation.

-Ant.