LOSS ON FLOOD-DAMAGED SUBARUS TO TOTAL AT LEAST $12.8 MILLION

LOSS ON FLOOD-DAMAGED SUBARUS TO TOTAL AT LEAST $12.8 MILLION

The destruction of 788 Subaru cars won't hurt deliveries of the Legacy model, but it will cost the company anywhere from $12.8 million to $17.8 million, company officials said.

The autos were damaged by rising flood waters during the third week of April.They are parked in a 194-acre gravel lot, bordered by the Chicago & North Western and Soo Line railroad tracks, at the Bain Auto Facility.

"We're destroying a total of 788 vehicles that will be stripped and crushed," said Richard Marshall, corporate public relations manager for Subaru of America. "We're taking this precaution because we want to control the process. We do not want parts to get into our parts supply or into new vehicles."

The compact cars that will be destroyed range in price from a $16,250 base model to a fully loaded $22,650 version.

Mr. Marshall said details are being worked out on how the vehicles will be stripped, drained of gasoline and other fluids, and crushed. Some materials will be recycled through a remanufacturer and sold as reconditioned parts. Subaru is taking bids for the cleanup.

The process of moving the cars from the lot and shipping them to a destruction site will take three or four months.

Mr. Marshall said Subaru has reached a settlement on the cars with its insurance carrier. He refused to disclose the amount of the settlement.