The cars piled up in the streets, garages and highways faithfully reflect the destruction caused by DANA. The high population density in the municipalities most affected by DANA (zero zone) also implies the existence of a high number of passenger vehicles located in said zone.
Private individuals and companies suffer the loss of their means of transport, with the consequent economic damage. But in the automotive sector the losses amount to millions. Dealers, garages, distributors, aftermarkets, component manufacturers and factories such as Ford of Almussafes will need resources to resume their business.
According to the data available so far and without knowing the final balance, in the areas affected by the floods of the Valencian municipalities there are almost 459,000 vehicles registered, 28% of the provincial total, according to Solera.
Of all, 61% are more than 10 years old, i.e. vehicles that normally only have RC coverage, although the Insurance Compensation Consortium will cover any vehicle with a valid policy, regardless of whether it is Kasko or RC. party coverage.
However, especially for newer vehicles (which make up 17% of the fleet in the affected areas of the province of Valencia), insureds should check whether there are improvement clauses in the contracts. This means that a vehicle, which depreciates every year, can recover a part of that lost value, up to 20-30% depending on what is signed, in addition to the valuation made of the car according to the tables of the corresponding bodies. Up to 93% of vehicles registered in the municipalities most affected by DANA in the province of Valencia are in private hands, compared to 4.4% of companies, 2.3% of rental companies and 0.4% of rent a car companies.
According to statistics from the General Directorate of Traffic, in the 15 municipalities of the zero zone (not counting the affected districts of Valencia), the number of passenger cars in 2023 amounted to 120,000, of which a third were younger. at 8 years old. It is in this area that the percentage of affected cars is highest.
The number of registered vans and trucks exceeds 18,000. Although not everyone would be parked or mobile in the affected areas.
To this figure must be added the vehicles affected on main roads (A3, A7, V31 and CV36) and in dealerships. Being a working day and at 7pm, the vehicles affected by customers of the shopping centers in the area were not very high, according to data provided to the ABC by the Association of Car Repairers of the Province of Valencia (FEVAUTO).
Losses of 490 million euros in dealerships
Although it is still early to quantify the overall damage caused by the consequences of DANA to vehicles and distributors, the federation of official dealers Faconauto estimates that the figure for sellers could exceed 490 million euros. The stores in Valencia are divided into three large areas: the Avenida de las Tres Cruces, within the city, which suffered almost no damage; the Quart del Poblet, with some damage and the Pista de SIlla, which is the most affected area. According to data from the Department of Innovation, Industry, Trade and Tourism, 40 stores were affected by the floods and mud, with around 18,000 cars damaged.
Raúl Palacios, president of Ganvam, which represents the interests of sellers, is also head of the Valencian regional section of the association. “We are trying to coordinate humanitarian aid and support the businessman,” he says. “We have activated a mechanism to provide immediate support to interested entrepreneurs, whether they are members or not, including, among other measures, the free evaluation of the stock of damaged used vehicles.” Furthermore, the organization has created a legal consultancy service to help manage unexpected events.
From Faconauto they underline that they appreciate the proposal of the Valencian Generalitat to allocate 200 million euros in aid to alleviate the damage in sales outlets, as well as the proposal to launch an aid plan of 864 million for 80,000 cars and commercial vehicles affected, and 400 million to renew 10,000 industrial vehicles.
The automotive supplier industry is spread across Spain, with a particular concentration in places where a vehicle manufacturing plant is installed. DANA has directly impacted many automotive supplier factories and facilities, with corresponding impacts on workers, their families and business competitiveness. According to the general director of the Spanish Association of Automotive Suppliers (Sernauto), José Portilla, “it is still early to quantify the direct losses, given that some factories are at the epicenter of the tragedy and access has not been possible”.
Furthermore, given that they are part of the automotive sector supply chain, as the manager explains to ABC, ”it is estimated that it is also having a strong indirect impact on customers and suppliers of all types. The Renault Valladolid and VW Navarra factories have already announced that they will have to temporarily stop as they have suppliers in the affected area. This is especially felt in the spare parts market, with distributors and workshops very affected by the floods and inundations of recent days.
The DANA approval meant a new setback for the Ford plant in Almussafes (Valencia), in the midst of a negotiation process between management and unions to adapt the size of the workforce to market demands. This factory plans to resume activity in its engine factory next Monday, November 11, when in principle it was expected to resume activity yesterday, Wednesday, as reported by the UGT union. The effects of DANA last Tuesday in Valencia forced the paralysis of production which was already affected by an ERTE. The UGT explained that the resumption of activity at the engine plant was expected, but “the current circumstances of mobility restrictions and the state of the roads, as well as the impact of some suppliers, make this impossible.”
The vehicles accumulated in the streets, garages and on the highways after the storm that hit Valencia are starting to be removed by tow trucks and scrap yards in the area, which however will need the help of other autonomous communities to be able to complete their Work. 69 points have already been set up, including scrapyards and camps, so that the over 400 insurance experts already present in the area can identify vehicles and owners to process, if necessary, any compensation or cancellations, and so that owners can recover their vehicles.
According to the coordinator of the teams of the Network of Roadside Rescue Companies (REAC), Sonia Luque, there are around 70 cranes and 100 workers present in the area, who intervene once the teams of the Military Emergency Unit (UME) go to clear the land. Scrappage companies also intervene, removing cars from the streets and taking them to a field in the south of Valencia, as explained by the technical director of the Association of Scrappers of the Valencian Community (Adecova), Pere Anrubia. However, he warns that it will be necessary to enable new spaces.
In this case, the General Directorate of Education and Environmental Quality of the Valencian Community has issued a resolution to expand, without limits, the limits of vehicles that scrap can receive. Under normal conditions this figure is limited according to the capacity of each demolition company. The measures adopted are valid for six months (until 04/30/2025) and must be applied exclusively to vehicles damaged in the geographical areas affected by DANA, taking into account the objective storage capacity of each centre.
Once vehicles are removed from public roads, experts and owners must take action to decide whether they are repairable or ready for scrapping. Economía specified that each car will have a file that will speed up the opening of the case and proceed as quickly as possible with the payment of compensation.
Repair and after-sales workshops: 422 companies with an annual turnover of 206 million
Cars, motorcycles, vans, trucks. Countless people are left without vehicles in Valencia and the operation to remove them could take one to two months. The severe floods will have multiple direct consequences on the automotive market and the after-sales sector, particularly in workshops and spare parts. In the most affected areas there are 442 vehicle repair companies that generate an annual turnover of more than 206 million euros and employ 948 people, according to data provided by Solera.
From FEVAUTO (Association of Automobile Repairers of the Province of Valencia), they are collaborating with the College of Industrial Technical Engineers COGITI VALENCIA to help with the cleaning and removal of vehicles in areas where DANA has caused damage.
The Association of Vehicle Repair Shops of the Province of Valencia (FEVAUTO) highlights the importance of not starting vehicles, whether internal combustion or electric, that have suffered damage due to DANA to avoid engine failure and declaration of total loss. From this organization they are working to help with the cleaning and removal of vehicles in the areas where the damage occurred, as the machinery assisting in the cleaning and debris removal activities urgently needs on-site repairs, such as replacing the wheels to punctures and therefore invite workshops that have an assistance workshop vehicle to come and collaborate.
According to Mª José Lladró Pérez, Technical Secretary of FEVAUTO, “we are managing machinery and other types of aid in all sectors so that workshops, industries and people can move forward. Together with Aselec and Aseif, plumbers and electricians, we are working on 200% to clean and restore everything as soon as possible.
Articularly in terms of vehicle availability, repairs, and the overall economic impact on related businesses.
The aftermath of the recent storms has left many individuals and companies with significant vehicle loss or damage, causing a ripple effect through the automotive sector. With around 422 repair and after-sales workshops operating in the region, the annual turnover of this sector is estimated at 206 million euros. However, the operational challenges posed by the flooding mean that many of these workshops might struggle to meet the increased demand for repairs as vehicles are assessed for their recovery.
To mitigate the crisis, local governments and automotive associations are coordinating efforts to provide necessary support to affected businesses. This includes financial aid and logistical assistance for those trying to salvage their vehicles or repair businesses that have sustained damage from the floods. Stakeholders are working on quickly establishing repair protocols and facilitating resources to get these workshops back into full operation. The cooperation between various entities, including insurance companies and repair services, is essential for managing the claims process efficiently for vehicle owners.
As many vehicles remain stranded and damaged, the urgency of the situation cannot be overstated. There’s a pressing need for timely assessments and repairs, particularly as the public relies heavily on vehicles for transportation. The longer the situation persists, the more profound the implications will be, not only for individual livelihoods but also for the broader economy of the region.
the flooding in Valencia has created a complex scenario, with substantial challenges ahead for vehicle recovery, repair workshops, and related businesses. The focus now shifts towards recovery and rebuilding efforts, as the community and industry navigate the consequences of this devastating natural disaster.