top of page

How Hurricanes Helene and Milton Shook Up the Auto Industry

  • Writer: LeeAnn Shattuck
    LeeAnn Shattuck
  • Oct 29, 2024
  • 4 min read

Updated: 3 days ago

Flooded car in the aftermath of Hurricane Helene
Flooded car in the aftermath of Hurricane Helene

Hurricane Helene—and then her equally unwelcome cousin, Hurricane Milton—came barreling through the Southeast last week, hammering Western North Carolina and parts of Florida.


Here in the Charlotte area, we were lucky. Some wind, some rain, but nothing like the devastation in the mountains. So this week, I want to talk about how these hurricanes are going to impact the automotive industry—beyond just the usual flood car warnings.


It’s Not Just About Flood Cars

Yes, we’ll see flood-damaged cars creeping into the used market. That always happens, and I’ll touch on how to avoid them. But the bigger story is how these storms rip through the supply chain in ways most people never realize.


Racing to the Rescue

First, some shoutouts. I teamed up with my friends at GMP Performance—an amazing German specialty shop here in Charlotte—to deliver relief supplies up to the mountains. These guys hauled everything from bottled water to nearly 200 gallons of fuel, using the same massive gas containers they take to the racetrack.


Race car folks are experts at adapting when Plan A falls apart—and it always does. So when the original plan didn’t fit the needs on the ground, they pivoted. They found volunteer fire departments out of fuel, helped them refuel, and got supplies where they were needed most. Big kudos to them.


My nephews were also out there hustling—Cameron from Asheville Ford and Brayden, who runs a detailing business in Hendersonville. They put their trucks and trailers to work delivering water and supplies across the area. I’m super proud of them, and thankful my family came through with just some inconvenience.


Now Let’s Talk Economics: The Quartz Problem

You’ve heard of computer chip shortages, but did you know a little mountain town in North Carolina holds the key to the entire global chip industry? Spruce Pine—population around 2,200—is the source of 80% of the world’s ultra-pure quartz, a critical material in semiconductor manufacturing.


That quartz goes into making crucibles—the containers that melt silicon for chips. If impurities get into the mix, you end up with junk chips. So no, your garden variety quartz won’t do the trick. And when Helene hit, the two major companies mining in Spruce Pine—Sibelco and Quartz Corp—had to shut down.


Thankfully, it wasn’t as bad as feared. Sibelco is already back up and running. Quartz Corp is still working through power and road issues, but they stockpiled quartz overseas. The crisis was real—but well-managed.


Bottom line: the sky isn’t falling. But there will be ripples.


General Motors and the Port Problem

Let’s move down the supply chain. GM had to shut down two key plants in Texas that produce their big-ticket SUVs and trucks because they couldn’t get parts through the ports in Florida.


Ports in Tampa and Jacksonville were closed for days. Safety inspections delayed reopening, and even a few days of downtime can mess up production schedules. These ports don’t just unload vehicles—they perform essential inspections, minor repairs, and even install accessories.


Toyota’s port operations in Tampa, for instance, handle emissions inspections and accessory installs before cars hit the dealership lot. When the port shuts down, it doesn’t just delay shipping. It backs up everything—right down to Japan, where Toyota paused shipments and dealer allocations for the Southeast.


Used Car Prices Are About to Spike

Let’s talk about what you’re likely to feel the most: prices. Flooded cars mean insurance companies will be cutting checks soon. People will need to replace their vehicles—and fast. That sudden surge in demand hits an already strained supply.


Dealers will be scrambling to restock, buying up used inventory from across the country. And when demand goes up, so do prices. So if you’re in the market for a used car—brace yourself. This price hike won’t just affect the Carolinas and Florida. It’s going to be nationwide.


The Bigger Picture

We dodged the worst-case scenarios with the quartz mines, but the hurricanes exposed (again) how fragile our supply chains still are. Whether it's a tiny mining town or a major port, disruption in one area sets off a domino effect that can hit the industry hard.

And while the automakers will recover, for thousands of people in North Carolina and Florida, the road to recovery is just beginning.


Here’s How You Can Help

If you’re wondering how to make a difference, there are plenty of ways to help:

  • Donate money or supplies. But beware of scammers—check local news outlets for verified relief partners.

  • Consider organizations like the Red Cross or Operation Airdrop.

  • If you’re local, volunteer your time. Relief centers desperately need help sorting and distributing supplies.


Even small efforts add up. These communities have a long road ahead.


And Yes… About Those Flood Cars

If you’re shopping for a used car in the coming months, be cautious. Flood cars are sneaky. Some get “title washed” and show up clean on paper. In my No BS Guide to Buying a Car online course, I show you exactly how I avoid flood cars when shopping for clients.


🎧 Want to hear the full breakdown and stories from the front lines of the hurricane relief efforts? Listen to the full podcast episode on The Straight Shift.

Comments


bottom of page