Something Odd Is Going On In Parking Lots Around The US

Over the last few weeks, we have been keeping a close eye on the growing glut of automobile inventory, exacerbated by demand falling off a cliff, plunging used car prices and rental car companies suffering from an unprecedented collapse in business (or, like Hertz, simply going bankrupt).

To wit, just hours ago, we documented how declining fleet sales was having a profoundly negative impact on automakers. Previously, we pointed out how a crash in used car prices could be putting significant pressure on the rental car industry. And most notably, several days ago we also wrote that automakers were having so much trouble finding space for their unsellable inventory that ships bearing auto cargo from overseas were denied entry at US ports and sent back out into the ocean.

Now, we are seeing firsthand what buildups of inventory look like in major cities.

Philadelphia is rapidly becoming the case study which other cities will follow, because as Inquirer reports,  the city’s sports complex parking lots are now being used as lots for rental car companies based at the Philadelphia Airport. In other words, there are so many cars available, not even airport parking lots can hold them anymore. 

About 2,200 Enterprise rental cars are parked at the Wells Fargo Center in South Philadelphia
About 2,200 Enterprise rental cars are parked at the Wells Fargo Center in South Philadelphia

In an effort to deal with the drop in air traffic, “rental cars are being stored at off-site locations, including the Wells Fargo Center parking lots,” the Inquirer reported.

Phil Weinberg, executive vice president and general counsel for Comcast Spectacor, which owns the Wells Fargo Center, said: “Enterprise is a corporate partner of the Flyers and the Wells Fargo Center, and it is the only company with rental vehicles parked at the stadium. They approached us shortly after the stay-at-home orders became effective and asked if we could assist them in parking their cars, which are clearly not in service right now.”

According to the Inquirer, the Wells Fargo Center is letting Enterprise park more than 2,000 vehicles free of charge, with no fixed end date in sight.

The Wells Fargo Center isn’t the only sports venue in the country housing overflow rental vehicles. According to the Honolulu Star-Advertiser, Aloha Stadium has up to 1,500 rental cars from five companies parked in its lots.

Aloha Stadium’s parking lot has become the temporary home to 1,000 to 1,500 rental vehicles on Oahu that have become idle because of the novel coronavirus pandemic.
Aloha Stadium’s parking lot has become the temporary home to 1,000 to 1,500 rental vehicles on Oahu that have become idle because of the novel coronavirus pandemic.

And in Southern California, thousands of rental cars fill the parking lots at Dodger Stadium in Los Angeles and Angel Stadium in Anaheim, according to the Southern California News Group.

Hundreds of rental cars are being temporarily parked at Dodger Stadium as travel continues to constrict amid the coronavirus pandemic.
Hundreds of rental cars are being temporarily parked at Dodger Stadium as travel continues to constrict amid the coronavirus pandemic.

Lisa Martini, a spokeswoman with Enterprise Holdings, which owns the Enterprise, National and Alamo brands, said her company is working with Santa Anita to stage many of its cars there while the vehicles are being prepared and processed for rental, lease or sale. Business, she said, has fallen sharply in the face of the COVID-19 health crisis.

“Like others across the travel industry – and countless other companies large and small – we have witnessed an impact to our business,” Martini said via email. “This includes a significant decrease in reservations and customer demand as both corporate business and leisure travel have come to a virtual standstill.”

Pete Siberell, Santa Anita’s director of community services and special projects, said the parking arrangement makes sense.

“With Santa Anita not being able to race and having postponed many of our events, much of our parking lot space was available for us to help and we were glad to do so,” he said.

Incidentally, earlier today we reported that Hertz and Avis had put stops on purchases and, in some cases, re-directed purchases they’ve already made to additional parking lots. These companies have cancelled “all orders of GM vehicles for May, June and into July”.

This has left GM and Hyundai taking back cars that it had agreed to sell to Hertz, Avis and Enterprise. Last month, Fiat underwent efforts to try and redirect almost 30,000 vehicles these companies had purchased, but was unable to transfer them.

The chaos has continued this month when Avis had to sell $500 million in junk bonds and Hertz was granted a last-minute concession from its lenders to narrowly avoid bankruptcy. Meanwhile, rental car sales fell 77% in April.

Most recently, Bloomberg reported this morning that rental icon Hertz hired advisors to consider a bankruptcy and the auto industry has placed a major bet on incentives to try and move inventory off of their lots.

Based on what we’re seeing in parking lots around the nation, it isn’t working.

via zerohedge

15 comments

  1. President Trump and other folks that have there priorities in order should be applauded for there efforts in the continuing struggle to keep things going as best as can be expected in these times….TRUMP 2020 or we will never get back any SENSE OF NORMALCY…….

    1. If the Democraps would get out of his way, Trump could get all this Country needs, done. They’re too busy manufacturing false evidence to Impeach President Trump, which thankfully, fell on its face, as well as set up his National Security Director, General Michael Flynn, with falsified evidence, and had that man removed from his position, and then Imprisoned. This is an outrage, and demands Justice for every one of these vermin.

  2. I believe we have the following scenario:
    1. We have a regular, cyclic appearance of a virus which is a mutation of the previous SARS virus.
    2. The liberal left (aka scientific community in cahoots with many organizations) rebranded it COVID-19 and call it ‘NOVEL’ indicating that it is new and 10 times more dangerous that any one of them before. It is a lie, it is the same order of magnitude what we had before.
    3. The enemies of Trump decided to use this as an excuse to ruin the economy (specifically that of the US) by worldwide lockdown – remember the left kept wishing for the economy to tank?
    4. The left is going to use his as a club against Trump at the election on November 03, 2020.

    Follow the money and hunger for power and it leads to he politics of the US presidential election. The rabid left-liberals know that they can not beat Trump at the ballot box so they try some oher evil thing. They do not care if millions of people lose their job, go bankrupt, suicided, etc. They do what they always do: use anything and everything to gain power.

    1. Well written! You have clear insight as to the evil coming from those who have only their own, selfish interests in mind. More than ever, kindness and caring and schmart moves are needed. God help us and bless those who are first responders, nurses, Drs, CNAs, caregivers, EMTs, good police officers and firefighters! ☘

    2. You got that right! If we don’t get out and vote for Trump, America as we know it, will be gone forever. That should scare the heck out of every right winged, freedom loving, God fearing American.

    3. Oh! Don’t forget that Biden is only a “Trojan Horse”. All the democrats really want to do is get him elected, roll him into his grave, congratulate the Vice-President as our new President. Be careful there!

  3. I believe President Trump should open our country. This shut down was orchestrated by the Democrats in cahoots with China to destroy our country and make sure president Trump loses the election. They don’t care how many lose their lives as long as they get the power they are always after and can turn Americaa into a socialist communist country.

  4. Anyone who might be able to afford it, and have been in need, could possibly find a bargain vehicle.
    I wonder how many of these inventories are posted?
    It’s sad to see though.
    I believe the Wuhan virus ‘pandemic’ to be orchestrated. There’s just too much coincidence in it and the way it was handled. The prognosticators were SO wrong in their calculations, and the ‘advisors’ flip-flopped daily, the “blue state” tyrants have been disgusting, and the demonrats will not go back to work.
    China has been proven to have this virus genome since 2013, and they’ve had their people here working on it. They allowed their citizens to ‘escape’ Wuhan’, and they stockpiled PPE and tried to get a patent on Remdesivir.
    The U.S. followed China’s model of lock-down, shut-down; when we should have followed Sweden’s model of respect for citizens’ rights and trust.

  5. is it “pandemic”?

    Or… possibly a SCAMDEMIC to CONTROL THE PEOPLE THROUGH FEAR?

    According the Centers for Disease Control and Prevention (CDC)
    Trusted Source, there are very distinct differences between an outbreak, epidemic, and pandemic.

    The CDC explains that an OUTBREAK is an increase in cases of a disease above what’s normally expected in a certain area. The increase is often sudden.

    An EPIDEMIC is much like an outbreak, but for people within a larger region.
    The two terms differ only in degree.

    A PANDEMIC is an epidemic that’s spread over several countries or continents and AFFECTS A LARGE PERCENTAGE OF THE POPULATION!

    We ‘finally achieved’ over one million ‘infections'(mostly by fudging the numbers and blaming the disease du jour on corona19.

    1 million infections in a population of 330 million.

    10% is 33 million
    1% is 3.3 million.
    1 million is 0.33%

    NOT a “large percentage” of the population!

    I’m going with SCAMDEMIC and I’m pretty certain President knows it, and will turn it against the media and the liberals long before the elections.

  6. Medical institutions are being paid to report deaths as Covid-19. The numbers are highly inflated. The virus was developed in a bioweapons lab associated with the University of North Carolina and sold to China ,who then modified and released it. Fauci and Pelosi were involved. Fauci is in cohorts with Bill Gates, whose vaccinations are killing and maiming people in third world countries. Gates wants everyone vaccinated and chipped. ( like they’re doing in China already).
    The United States is already bankrupted. Printing more money to give to people sitting at home is ridiculous. Most people only had one month in reserve before all this mess started. We are being setup for bankruptcies, foreclosures, unemployment and dependency on government.
    We must reopen quickly and get back to work.
    We must quit listening to the lies and fearmongering of liberal media and get back to building this country, while we still have a country.
    I’ve been shocked how quietly we have complied with all this nonsense. We have surrendered our freedoms of assembly, of religious assembly, freedom of speech, of right to work and provide for our families without a fight, quietly cowering in our homes.
    This has always been a nation of brave patriots. Where is our courage and conviction to build a future for ourselves and our children?
    It’s time to wake up and get to work.

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