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BGA’s Tornado Damage Was $225,000,000

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  • BGA’s Tornado Damage Was $225,000,000

    Amazing and they returned to production just six work days later. Is there any way to express how fantastic this recovery was? Sure if there were 120 vehicles destroyed as an average sale price of $96,000, that would itself be $12M subtracted from this amount, then 6+ days of lost production, add in wages that had to be partially employed to the employees and other factors, but $225,000,000 is a staggeringly large amount of money — of which $175,000,000 was just attributable to physical damage.

    Click image for larger version  Name:	1B06B56D-4976-4B8F-993C-AE34898765D3.jpg Views:	2 Size:	49.7 KB ID:	344260

    Thanks you Muscle Cars and Trucks for your unearthing and sharing this article. For those who are not yet an email subscriber of theirs (free into your email in basket when you wake up), I urge you to do so.

    [Quote=MuscleCarsandTrucks)[B]INSURANCE COMPANIES EXPECTED TO PAY OUT $225 MILLION FOR CORVETTE PLANT TORNADO DAMAGE[/B]

    From Property Damage to Business Interruption, Things Are Getting Pricey


    by Cody U.January 5, 2022, 2:52 pm

    In early December 2021, tornadoes came through Kentucky in full force, hitting the General Motors Bowling Green Assembly plant, the National Corvette Museum, the NCM Motorsports park, and other surrounding facilities. What’s the cost of cleaning up the mess? Estimates from insurance companies place losses around $225 million USD.



    MC&T previously reported initial damage to the plant that included a fire on the rooftop of the assembly plant, museum signage blown 30-plus miles away, and over one-hundred Corvettes battered by the high winds and flying debris designated for demolition, just to name a few. The assembly plant has since cleaned up and started operating again however. The assessed damage tells the story of what was truly affected. According to Corvette Blogger, the damage assessment and write off procedures are being handled by a variety of carriers that include Allianz, Zurich, Axa XL, Munich Re, Allied World, Sompo, and Argo Group.



    The Breakdown:

    Estimates breakdown into two separate categories. A total of $175 million was attributed to physical damage. That includes property, equipment, and vehicles. There is another estimate for $50 million that accounts for interruption of business, including the time it took to repair and set everything back up for normal and safe production. Current estimates show about $7.3 to $11.5 million are associated with the loss of over 100, closer to 120 in total, Corvettes. The variation in that estimate is due to the difference in starting and transaction price.

    Per Corvette Blogger, the average transaction price for a 2022 Corvette sits at $96,000 while the starting price rings in at $61,000. If you add all of the categories up you end up with a grand total of $225 million in damages. Combined industry losses are expected to hit in the low billions of dollars. A modeling firm has estimated a grand total of $3 billion. The Corvette plant in Bowling Green has been the only home of building Corvettes since 1981. One of its most current projects will include production of the 2023 Corvette Z06.

    To be clear, the $225 million in damages are just for the Corvette plant. The National Corvette Museum and NCM Motorsports Park – which operate independently of General Motors are not included.[/Quote


    https://www.musclecarsandtrucks.com/...-lot-of-money/
    GBA Black; HTO Twilight/Tension interior; Z51 & Mag Ride; E60 lift; 5VM visible carbon fiber package; 5ZZ high wing; FA5 interior vis CF; ZZ3 engine appearance; 3LT; Q8T Spectra Gray Tridents; J6N Edge Red Calipers; SNG Edge Red Hashmarks; VQK Splash Guards; RCC Edge Red engine cover; VJR illuminated sill plates. Lifetime, annual contributors, and 23 year members of National Corvette Museum. Home is the beautiful Pacific Northwest.

  • #2
    Expect GM’s insurance policy to be a bit more costly… and hope it will not mean anything to MSRP of our cars😎
    Coupe, 1LT, Rapid Blue, orange seat belts and black interior. ETA Late 2021.

    First mods: tinted windows, orange DIY stitching, orange 12 o clock stripe on steering wheel, orange EL-wire in the cabin, orange engine cover, orange painted grille protectors and orange led light in engine bay✌️😎

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    • #3
      Large companies such as GM usually self insure for losses, and only carry excess loss coverage with outside insurance companies. So, if the claim with outside insurers is $225M, the total losses are even more.
      Expected build - 2022 HTC 2LT Z51
      Front lift, mag ride
      black exterior, adrenaline red interior, bright red calipers

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      • #4
        WOW. Big number.

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        • #5
          Crazy to think that doesn’t include the NCM or Motorsports park. That’s a huge number and makes the quick recovery even more impressive
          2LT Coupe, Z51, Elkhart Lake Blue, GT2 seats, Edge Red Calipers and engine cover, Mag Ride, Front Lift, High Wing spoiler, R8C, American Hydrocarbon 5VM kit, museum delivery.

          2000 status 5/1, 3000 on 5/4, 3300 on 8/4, 3400 on 8/11, #18 off the line on 8/23, delivered 9/10.

          Well worth the wait, the car is amazing!

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          • #6
            Both the Business and Residential sector will need to start budgeting for annual weather related disasters going forward.

            It's no longer a matter of "if" but "when".

            Comment


            • #7
              Originally posted by Milliwatt Rob View Post
              Large companies such as GM usually self insure for losses, and only carry excess loss coverage with outside insurance companies. So, if the claim with outside insurers is $225M, the total losses are even more.
              Impressive rate of recovery with a huge physical loss / damage ! Hopefully the BG staff human emotional / personal loss were adequately managed...
              Delivered 2/2021, HTC, (GPH) Red Mist, (EFY) Exterior Trim Accents, Body Color, (HTN) Natural, (AH2) GT2 seat, (TU7)Seats, Two Tone, (FA5) Carbon Fiber Interior, (Q8P) Silver painted wheels, Z51 package, (E60) Front Lift, (FE4) Magnetic Suspension, (STI) Rocker extension, (VQK) Splash guards, (ERI) Battery package,

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              • #8
                "the average transaction price for a 2022 Corvette sits at $96,000"

                This ^^^ is what I found surprising. I would have guessed in the mid $80k range.

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                • #9
                  Originally posted by TurtleTim View Post
                  "the average transaction price for a 2022 Corvette sits at $96,000"

                  This ^^^ is what I found surprising. I would have guessed in the mid $80k range.
                  That's why It's hard to believe these types of stories.
                  2021 ELB, 2LT, Red Interior, Red Calipers, Standard Wheels, Front Lift, NPP,
                  MM Deposit Dec. 15, 2020
                  May 15, 21 2000
                  May 18, 21 3000
                  Aug 11, 21 3300
                  TPW 8/30
                  Sept 3, 21 3800
                  Sept 9, 21 5000 at the museum
                  Sept 21, picking up

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                  • #10
                    The business interruption claim is predicated on lost profits, not lost revenue. Sure, while the plant sits idle GM may not be producing revenue generating vehicles, but they are also not incurring substantial costs. It's also likely true GM self insured some or all of this type of exposure. In the scheme of the insurance world, this is not a significant CAT event. Net, it's probably little more than a rounding error on GM's balance sheet.

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                    • #11
                      A total of $175 million was attributed to physical damage
                      Be curious to see the breakdown because I'm skeptical of the number. We know about the crushed cars. was there damage to cars on the line near the roof damage?

                      $100M in damage doesn't gets fixed in a week. Think about how much labor and materials it takes to incur $100M in construction costs. Then think about how long that takes do deploy that level of resources and complete the work.
                      2021 Red Mist HTC / Z51 /Mag Ride / Yellow Calipers / C-Flash Mirrors and Wing / Front Lift / Black 3LT / CF Interior Trim / Yellow Belts and Stitching

                      Atomic Orange C6. Plenty of engine and suspension mods. Gone, but not forgotten

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                      • #12
                        From prior information I wouldn't have thought the cost that high, but my bigger concern has always been the production delays and how that impacts C8 buyers. Many of these folks have been waiting more than a year for their C8 and now face additional delays.

                        It was impressive to see how quickly GM was able to get the factory into functional condition and initiate production again, which will help to ultimately reduce delivery delays.
                        My C8:
                        '20 Elkhart Lake Blue 2LT Coupe, Natural Interior, GT2 Two-Tone Seats, Performance Exhaust, Front Lift, Carbon Flash Wheels, Engine Appearance Package 2000 Status December 27, 2019; 3000 Status January 2, 2020; 3400 Status March 10, 2020;TPW March 16, 2020; Built June 4th, 2020 (COVID-19); Delivery July 1, 2020

                        Current Vettes:
                        '68 Lemans Blue 327/350 Convertible
                        '91 Turquoise Convertible with Hardtop
                        '14 Lime Rock Green 2LT Convertible, Black Top, Kalahari, 7-Speed, Performance Exhaust

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