Sinking hits luxury car buyers

Luxury cars have to be carried in bulk

The sinking of the freighter Tricolor in the Channel means cars with a retail value of £60m will be lost and disappointment for buyers.

When the 55,000-ton vessel sank after a collision, it probably also capsized, allowing water to smash through its cargo of high-end BMWs and Saabs.

The cars were destined for the UK and US, at a time when many in the financial sector are spending year-end bonuses.

These cars are full of all sorts of pollutants

Matthew Carrington
Retail Motor Industry Federation

Luxury cars are usually supplied to order, with complex packages of extras and changed specifications, and they come from only a small number of plants and have to be shipped in bulk.

Matthew Carrington, chief executive of the Retail Motor Industry Federation, said it was extremely unlikely any of the cars could be salvaged.

"The reality is that cars that have been in freezing salty water for a few days, it's not going to have done the upholstery much good.

"The engines won't be up to much either."

And the possibilities for recycling the cars' components could also be limited.

Environmental problem

"There are some bits that won't be too badly affected. I don't suppose the wheels will be affected but whether it's worth anybody's while recycling any of that other than putting it through the scrapyards, I don't know."

Mr Carrington said the cars also presented an extra environmental problem to be dealt with.

"I don't think it can just stay there because these cars are full of all sorts of pollutants.

"They will have oil in them, petrol in them and air conditioning fluids and all sorts of things.

"And in any case, it's not very deeply sunk so it's probably a hazard to shipping as well. They will have to get it up."

Many of the cars will have been pre-sold, but while customers will not be left out of pocket they could face a long wait to get a car.

"These will all be pre-ordered, most of these cars are built to specifications that people have said in detail.

"The real problem for them is that instead of getting their cars in a few weeks' time they will get them in a few months' time."

Retail price

Mr Carrington said there would be no direct effect on the public in terms of increased costs.

"It would be astonishing if it wasn't insured, although I suppose it's possible the manufacturers self insure on these things.

"You say £30m but if these are really high value BMWs and Saabs, you are talking £20,000 each, possibly more. You are talking £60m in retail price.

"[But] I suspect what we are talking about is industrial insurance risk rather than what insures us for driving down the street."