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.
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.