If gold doesn't work, maybe this will
How to turn $100 million into scrap metal.
This is a symptom of an overly litigious society, I think. Instead of making a huge insurance claim, Mazda could possibly offset some of the loss by re-selling these cars at a steep discount but without, say, the benefit of a factory warranty. It seems people are always looking for bargains, but the first time the brakes fail because the master cylinder was compromised will lead to a lawsuit that could cost Mazda a lot more than the loss on scrapping the vehicles (what kind of deductible is there on a policy that will pay a $100 million loss?). So the company's risk aversion is probably higher than any potential consumers' anyway.
Still it's a little sad to read about nearly 5,000 new cars being ripped apart before they ever see a dealer's lot. And maybe a bit zen, too:
Next stop: Schnitzer Steel, a salvage yard down on the waterfront that's home to an immense metal grinder. "You turn 7,000-horsepower hammers loose on them, and they're eaten in 10 seconds," says Jamie Wilson, Schnitzer's manager. A bemused smile spreads across his face as another load of Mazdas disappears into its maw.
Moments later, metal shards -- most no bigger than an ashtray -- sprinkle onto a mountain of scrap near Schnitzer's dock. There, a freighter prepares to take the scrap back to Asia where it will get recycled.
Mr. Wilson looks on and concludes: "It'll all probably end up coming back as cars."
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cluebyfour) wrote,
