Hurricane Sandy Destroys 300 Karmas
The company suffered a setback on October 29, 2012 when Hurricane Sandy flooded and destroyed its entire European shipment of 300 Karmas at Port Newark, New Jersey. Sixteen of the cars burned, because six to eight feet of seawater caused a short circuit in a Vehicle Control Unit in one Karma, and high winds spread the resulting fire to fifteen others. The company said that its Lithium Ion battery was not at fault.
Insurance assertedly covers the approximately $30 million loss in destroyed Karmas.
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