Mazda is choosing to cut it’s babies in half. A couple years ago there was freak mishap on a freighter, the Cougar Ace, that rendered it unseaworthy. The ship tipped to port at nearly a 60 degree angle. As a result, much of the cargo was drenched in seawater, or stored at odd angles. There were over 100 million worth of Mazda cars in the cargo hold.

Mazda has now decided to destroy all the cars to prevent them from making it onto the gray market as new cars. Mazda has originally intended to sell some as new given that many of the cars are likely undamaged. Financially, it doesn’t matter to Mazda. They had insured their cargo, and as result are probably better off destroying the cars rather than risk their reputation if the cars turned out to be faulty. Interestingly enough, casualty and property insurance developed for exactly this type of event.

While I understand Mazda’s intentions, and the Insurance company’s reluctance to enter the car salvage business, it seems like such an awful waste. While I would be weary of Mazda if they had attempted to sell these cars as new, I would think that these cars can be at least salvaged for parts. I can’t imagine there’s much if anything wrong with the body panels. Instead these cars are being shredded. Such a waste.