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August 16, 2016 02:00 AM

'Moderate' number of damaged vehicles expected from La. flooding

Jack Walsworth and Stephanie Hernandez McGavin, Crain News Service
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    (Crain News Service photo)

    DETROIT (Aug. 16, 2016) —  As rivers across much of southern Louisiana slowly recede from record high levels, it remains unclear how many vehicles have been damaged or destroyed because of flooding.

    Severe storms and flooding began on Aug. 11, dumping more than two feet of rain in three days in some places.

    Christopher Basso, a spokesman for Carfax Inc., said that after looking at images of impacted areas, the number of damaged or destroyed cars could be significant.

    “As floodwaters recede and cleanup starts, we'll have a better idea,” Mr. Basso said, noting that rain is still in the area.

    Typically, he added, half of the vehicles damaged in flooding return to market.

    Getting vehicles properly branded and processed for individuals and dealerships is one of Carfax's biggest concerns in a time like this, Mr. Basso said.

    “Anytime there's a significant flood event, we're making sure we're working closely with the state government, organizations and insurance companies that are involved,” he added.

    State Farm reported 3,220 vehicle claims because of the flooding, a spokesman said on Monday (Aug. 15) evening, though that number is expected to rise as some areas are still inaccessible.

    The Baton Rouge and Lafayette areas are among the hardest hit.

    “We expect that the number [of damaged and/or destroyed vehicles] will be moderate,” wrote Frank Scafidi, spokesman for the National Insurance Crime Bureau, in an email. “Regardless, after events like this we find examples where people are attempting to resell damaged vehicles as perfectly fine.”

    Emergency crews have rescued more than 20,000 people. At least seven people have died as a result of the flooding.

    Rivers in Louisiana crested at record levels in multiple places, Reuters reported. The Amite River reached 46.2 feet in Denham Springs, five feet higher than a 1983 record.

    On Sunday, Aug. 14, President Barack Obama declared a disaster in Louisiana.

    (State of Louisiana photo)

    Louisiana Governor John Bel Edwards

    “This event is ongoing. It is not over,” said Louisiana Governor John Bel Edwards in a statement on Aug. 15. “Even if the sun has come out in your area, we do not know when the floodwater will recede, and they will continue to rise in some areas.”

    Dealership impact

    Efforts to reach most auto dealerships in the hardest hit areas were unsuccessful on the morning of Aug. 16. All Star Automotive Group's dealerships are clustered in the Baton Rouge area. On Aug. 14, the auto group posted a Facebook message for employees about the state of the stores.

    “Dear All Star Automotive Employees: First of all, we hope you and your families are safe. We have been impacted by flooding at All Star Dodge and Ford in Denham Springs, All Star Nissan, and All Star Kia East/Management Company. These locations will be closed until further notices.”

    The post instructed employees of those particular locations to meet at All Star Toyota, also in Baton Rouge, if possible on Aug. 15 morning. Employees would then be sent to All Star locations to do damage control or out into the community to help residents with car repairs or lost vehicles.

    All Star told Automotive News it couldn't comment on the situation as “all of our resources are tied up addressing employee and operational issues.”

    On Aug. 13, Subaru of Baton Rouge posted a similar message on its Facebook page: “Due to the flooding, our technicians weren't able to make it into the shop today. No worries though, Subarus have [all-wheel drive] and Acura of Baton Rouge will be assisting with oil changes today!”

    Calls to the Louisiana Automobile Dealers Association in Baton Rouge were not immediately returned. It is unclear if the association office was affected by the flooding.

    ______________________________________

    Reuters contributed to this report, which appeared on the website of Automotive News, a Detroit-based sister publication of Tire Business.

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