Inside moving exhibits at L.A.’s Petersen Automotive Museum

Inside moving exhibits at L.A.’s Petersen Automotive Museum

Jennifer Yates is directing traffic today — a routine happening as part of her job as head registrar at the Petersen Automotive Museum.

This late January afternoon, however, traffic is especially gnarly — and not because it’s a Friday. Several valuable vehicles are arriving at — or leaving — the museum today, a coincidental calendar smashup that has Yates ping-ponging between projects.

First, there were the Hetfield Collection cars, donated to the museum in 2019 by Metallica’s James Hetfield, Yates says while striding up and down South Orange Grove Avenue, a side street onto which the museum’s car elevator deposits vehicles from the mechanics shop below. Those 10 customized cars had been on view at LeMay — America’s Car Museum in Tacoma, Wash., and just returned home. Two of the tractor trailer trucks that transported them are still sitting on Orange Grove next to the museum’s parking garage exit, their back ends open and motors humming. Earlier that morning, two McLaren luxury “supercars,” which had been on loan to the museum, were returned to their owner.

The day’s main event, however, is the sendoff of two rare vehicles heading on an international road trip — a 1937 Mercedes-Benz W 125 Grand Prix car, sleek and silver, along with a dark gold luxury prototype, a 1970 Mercedes-Benz Type C 111-ll experimental sports car. Both were on view at the Petersen’s recently closed exhibition, “Andy Warhol: Cars — Works From the Mercedes-Benz Art Collection.” As part of a commission from Mercedes in the mid-’80s, Warhol created 36 silkscreens and 13 drawings of eight different Mercedes models. Most of those artworks and five of the cars that inspired them — four originals and a replica — were on view in the Petersen exhibition.

“It’s an all-hands-on-deck kind of thing,” Yates says of exhibit deinstallation, which includes the return of the cars to their owners. “There are a lot of moving parts.”

The other Warhol cars are in storage, awaiting transfer back to U.S. lenders, and the Petersen owns one of the cars. The two Mercedes, however, are the only ones traveling internationally and are now readying to hit the road. They’ll brave Los Angeles’ rush-hour traffic en route to L.A. International Airport before boarding a flight to Luxembourg. Their ultimate destination? The Mercedes-Benz Museum in Stuttgart, Germany.

Three men push a 1937 Mercedes-Benz W 125 Grand Prix car.

Paul Montero, from left, Tony Clark and David Sanchez push the 1937 Mercedes-Benz W 125 toward the elevator of the Petersen Automotive Museum’s mechanics shop to begin its journey back to Germany. Handlers are taught to place their hands in only certain places on cars when moving them to reduce the chances of damage.

(Nick Agro / For The Times)

Down in the mechanics shop — a vast area with gleaming, polished concrete floors, automotive tools tucked in shiny, red metal cabinets and rows of classic cars, in a spectrum of colors dating to 1910 — Yates does a pretrip inspection.

The elongated W 125 race car sits discreetly against a back wall, near a 1948 Jaguar “Black Pearl,” which is near a 1937 Ford custom “Crimson Ghost” coupe, which is near a 1954 Mercedes W 196 Formula 1 Grand Prix car — the latter also displayed in the Warhol exhibit and one of the most valuable cars in the world. Yates circles the race car that’s soon headed for Germany, scrutinizing its condition and snapping detail shots with her red, rubber-encased iPad. This is for an inspection condition report, she explains, to record even the tiniest scuffs, scratches or any other flaws, a process undertaken when the cars arrive and when they leave the museum. Hundreds of pictures will be taken.

The process is not unlike a rental car agent inspecting a vehicle upon return, just that the stakes are higher. Yates isn’t allowed to divulge insurance values, she says, except to say: “One of the cars is in the seven figures, the other the eight figures.”

The interior of the 1937 Mercedes-Benz W 125 Grand Prix racer.

The interior of the 1937 Mercedes-Benz W 125 Grand Prix racer features a mahogany steering wheel.

(Nick Agro / For The Times)

The open-wheel W 125 Grand Prix car has a mahogany steering wheel, plush gray interior and is entirely open-air, with no roof. Its lightweight aluminum, tube-like design was effective: The car only raced one season — 1937 — but won six races and finished second nine times and third six times.

The Type C 111-ll was an experimental prototype model that never went into production. It was built to test new technologies and likely driven for promotional purposes at auto shows. With its leather steering wheel, sleek, low-slung design and black check interior, it says nothing if not James Bond.

A man reaches into a car to grasp the steering wheel while looking behind him

Charlie Kyurklyan, car transporter with JP Logistics, adjusts the steering wheel of the 1970 Mercedes Type C 111-II experimental vehicle before it’s loaded onto a truck headed to LAX.

(Nick Agro / For The Times)

Suddenly, there is movement in the mechanics shop. A car porter and technician begin manually pushing the Type C 111-ll. which has gull-wing doors that open upwards, into the vast elevator.

“We try not to turn the cars on, especially if we don’t own them,” Yates says. “We don’t want to be liable for any mechanical issues. It’s safer to push it.”

Yates follows the vehicle into the elevator, still snapping photos. An employee from the transport company also takes photos — coincidentally, also with a red rubber-encased iPad. The theme of the day seems to be CYA (Google it): “I’m documenting that it’s not being mishandled,” Yates says, later adding that the museum’s insurance covers the cars “door to door.”

The porters are trained to place their hands as they push the car in only particular spots — such as on the wheels or bumper — where it’s more structurally sound and won’t suffer damage from tension.

The Petersen Museum's Tony Clark pushes the 1937 Mercedes Mercedes-Benz W 125 by its tires.

The Petersen Museum’s Tony Clark pushes the 1937 Mercedes Mercedes-Benz W 125 by its tires.

(Nick Agro / For The Times)

The car slowly rolls off the elevator onto the street, where it will be loaded onto a car transporter (a.k.a. an enclosed truck). A crowd of about 30 high school students from Phoenix who are exiting the museum, with oohs and aahs, snap pictures with their phones.

“Whoa!” one student yells out.

“We didn’t see this in there!” another chimes in.

Visitors unexpectedly catching a glimpse of a historic car in transport — on the real streets of Los Angeles as opposed to in a gallery — is a regular, serendipitous happening at the Petersen, says Dana Williamson, the museum’s conservator of the collection. The students’ excitement reaches fever pitch, but Williamsons’ eyes are fixed on the gold car as it ever-so-slowly is positioned parallel to the sidewalk.

“It’s a different exposure that people get to see,” Williamson says of the tourists. “We treat the museum as a center for education about car culture and design. So they get to see another aspect they wouldn’t otherwise experience.”

The 1970 Mercedes-Benz Type C 111-II sits on the street, its gull-wing doors open, as workers prepare it for transport

Workers prepare to load the 1970 Mercedes Type C 111-II experimental vehicle onto a transport while a crowd watches on the street outside the museum.

(Nick Agro / For The Times)

As if the scene were not chaotic enough, there’s now a trash recycling truck on Orange Grove waiting to pass through onto Wilshire Boulevard. But the sports car, its many handlers and the audience of tourists fill the street for now. Behind the truck is another car waiting to pass through.

This sort of thing “happens a lot,” Yates says.

“Because this is a public street, we often have pedestrians and public cars coming down here, so I have to be traffic cop,” she says. “We’ve had near-misses. You just have to make sure that people stop and see you.”

Suddenly, a smaller vehicle — a 1960s Meyers Manx original dune buggy — zips through the sliver of open road and stops in front of the Warhol car. Its driver is Meyers Manx Chairman Phillip Sarofim, who’s also a board member of the Petersen. He’s out for a spin and chats, from behind the wheel, with museum staffers while surveying the gold Mercedes, beaming. Between his 1960s car, the 1970s Mercedes sports car, the contemporary-looking SUVs and Hondas parked along Orange Grove — not to mention the still-stuck recycling truck — the scene is a kaleidoscopic mishmash of vehicles throughout the decades. If Warhol were here today, Yates imagines, he might be inspired to make a film documenting the commercialism-meets-art-meets-real-life-traffic-snaggle.

Jennifer Yates, Petersen Automotive Museum Head Registrar.

Jennifer Yates, Petersen Automotive Museum’s head registrar, signs off on the transfer of the Mercedes Type C 111-II to the custody of JP Logistics car transporter Jaime Ortega.

(Nick Agro / For The Times)

Yates chuckles at the ridiculousness, though the day’s frenetic activity is not novel. She worked at the L.A. County Museum of Art for more than 20 years in different registrar jobs prior to the Petersen and spent nearly a year working in Frank Gehry’s studio cataloging his architectural models. She appears unfazed by the chaos, hugging her iPad to her chest, hair pulled back neatly and eyes scanning the side street.

Soon both cars are loaded onto the trucks, where their wheels are secured to the truck beds with ratchet straps to prevent movement. Considering that laptops are generally packed in protective sleeves for transport, and musical instruments carried in padded cases, the straps, by comparison, seem fairly rudimentary for moving such a large, vintage object. But it’s the industry standard, says Uwe Moser, who works for the air freight transportation company Senator International. He’ll follow the trucks to the airport and see the cars off.

The 1970 Mercedes-Benz Type C 111-II is backed up a ramp, with little ground clearance to spare, onto a truck headed to LAX

A worker bends low to make sure that the underside of the Mercedes Type C 111-II doesn’t scrape the pavement as it’s loaded onto a truck headed to LAX.

(Nick Agro / For The Times)

At LAX, the cars will be mounted onto aluminum air freight pallets, which will be secured to the base of a commercial cargo carrier. Each car’s airfare is roughly the equivalent of two first-class tickets for humans, Moser says. They’ll fly into Luxembourg Airport before being transferred roughly 200 miles by truck to the museum in Stuttgart.

But first, the cars must navigate LAX — which is slightly easier for automobiles than humans, as it turns out. No long-term parking, no shuttles, no driving endlessly in circles; the cars will head straight for the airport’s cargo terminal, where they will be prepped for their journey in a warehouse. Paperless customs forms will have been handled in advance and the cars will bypass a security line (it was conducted electronically), going straight from the warehouse onto the aircraft via a high-lift loader, not unlike a forklift.

Turbulence? No worries. The pallets are locked in place on the plane, which is kept slightly colder than a passenger plane: 60-65 degrees. That’s not to protect the cargo — it’s to save fuel. The process of heating and cooling, over an 11-hour flight (no snacks), increases fuel consumption, Moser says.

The two Mercedes are secured one atop the other to air freight pallets made of metal frames for the flight to Europe

The two Mercedes are secured to aluminum air freight pallets to keep them in place during the flight to Europe.

(Uwe Moser / Senator International and Petersen Automotive Museum)

So what could go wrong?

Flight delays, paperwork hiccups and customs delays can occur, Moser says. But in his more than 15 years in the business, he’s observed that damage is usually due to human error.

“A forklift operator backs into a vehicle, stuff like that,” Moser says. “The most common damages are minor — chips or dents — like someone doesn’t wear the proper warehouse clothing or take off his rings or watch.”

Yates takes it all in stride. She loves her job, she says, just not driving.

“I walk to work,” she says.

And with that, the second of two trucks rumbles off, its contents — the race car — hidden from public view and headed on its next adventure.

Boise, Las Vegas, and Phoenix look like housing busts—this interactive map shows the shift in your local housing market

Boise, Las Vegas, and Phoenix look like housing busts—this interactive map shows the shift in your local housing market

Fed Chair Jerome Powell has made it apparent: We are not looking at the U.S. housing current market normalize, we’re observing it “reset” via a “difficult correction.”

“For the lengthier term what we need is provide and desire to get greater aligned so that housing rates go up at a sensible amount and at a reasonable tempo and that folks can find the money for houses once more. We almost certainly in the housing sector have to go by a correction to get again to that place,” Powell instructed reporters past 7 days.

Effectively, the existing housing correction is pushing the U.S. housing market—which experienced soared based on a traditionally low cost 3{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} house loan rates—toward a new equilibrium in the deal with of higher mortgage premiums. Inventory ranges will keep on to increase, and house profits will carry on to fall—likely depressing property charges.

But it is not a a person-sizing-fits-all housing correction. Irrespective of home finance loan premiums have jumped evenly throughout the region, the reset in household prices may differ appreciably by sector. In some regional housing markets, the Pandemic Housing Growth as fizzled out. Other folks seem like they are transferring straight from the Pandemic Housing Boom into the Pandemic Housing Bust.

To superior comprehend how the housing correction varies nationwide, let’s glimpse at inventory knowledge. Looking at inventory data is really straight-ahead: If inventory stages are spiking it suggests it’s speedily shifting from a sellers’ industry and into a buyers’ market place.

As the housing marketplace began to shift this summer, inventories ultimately spiked. Nationally, stock degrees jumped 53{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} involving March and August.

While inventory concentrations are climbing, they’re however very well under pre-pandemic amounts: Nationally, the variety of lively listings in August 2022 was 41.5{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} below August 2019. That has some housing bulls considering that property prices is not going to drop. Right after all, historically speaking, there is certainly a stickiness to household charges. Sellers really don’t like to price reduction closely till the economics pressure them to start slicing prices. That “economic force” is generally a source glut.

But this is the point: Restricted inventory ranges are not halting household cost declines. In July, U.S. home selling prices posted their to start with month-in excess of-thirty day period decrease given that 2012.

“Our view is that you will see—and we’re observing it right now—home price ranges will tumble even nevertheless offer ranges are not ripping larger,” claims Rick Palacios Jr., head of exploration at John Burns True Estate Consulting.

How can house rates slide even while there’s neither a offer glut nor a flood of distressed sellers? It boils down to pressurized affordability. The mixture of bigger mortgage rates— 6.82{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} as of Thursday—and frothy household prices have pushed new regular monthly home loan payments far past what numerous customers can monetarily abdomen. Cue falling dwelling charges.

On a person hand, restricted inventory stages usually are not stopping home price declines. On the other hand, the markets with the biggest inventory spikes before this summer time now have the sharpest house price tag declines. Just set: We even now need to be pay shut attention to stock shifts.

Marketplaces with substantial inventory spikes—over 150{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}—fall into a single of two camps.

The to start with team are significant-expense tech hubs. Look no even more than San Francisco (where by inventory is up 378{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}) and San Jose (up 177{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}). The purpose for their sharp correction is uncomplicated: Not only are their significant-end authentic estate markets a lot more charge-sensitive, but so are their tech sectors.

The second—and biggest—group are bubbly housing markets. Being “overvalued” relative to fundamental financial fundamentals doesn’t guarantee that residence prices will tumble. That said, in a housing downturn, it really is generally drastically “overvalued” housing marketplaces that are at the maximum chance of sharp corrections. We’re looking at that now: More than the earlier five months, stock levels have spiked in bubbly markets like Boise (exactly where stock is up 298{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}), Austin (up 435{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}), Phoenix (up 317{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}), and Las Vegas (up 192{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}).

Not only are bubbly markets—like Boise, Las Vegas, and Phoenix—shifting fast, they also appear like early-inning housing busts. Let us take a closer appear.

Even just before pandemic remain-at-residence orders were lifted, white-collar industry experts residing in towns like San Francisco and Seattle in 2020 have been currently having off for Mountain West getaways. The poster little one currently being Boise. Its outdoorsy life-style, tech scene, and relative affordability (at minimum for Californians) made it the go-to for work-from-residence techies.

That was not welcomed by all the locals. Some people with California license plates even located printed playing cards on their windshields that examine: “GO Again TO CALIFORNIA WE Really do not WANT YOU Here.” It’s uncomplicated to see why some locals had been discouraged: The Pandemic Housing Boom—during which Boise property values soared more than 50{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}—priced several Boise locals out of obtaining households. In accordance to Moody’s Analytics, Boise is essentially the nation’s most “overvalued” significant housing market—with house costs investing 72{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} bigger than fundamental fundamentals would commonly assist.

Rapidly forward to September, and that Boise growth is very long long gone. This summertime, Boise stock skyrocketed 297{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} even though property values dropped 5.3{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}. That correction is significantly from more than. Field insiders explain to Fortune you can find a glut of new construction in Boise that will before long hit the market. If consumers usually are not identified, those residences could see house selling prices drop even further more.

You will find no doubt about it: Opendoor—a nationwide iBuyer of homes—is using some significant losses on some of its recent “flips.” The epicenter of people losses could be Las Vegas.

An case in point is this North Las Vegas dwelling that Opendoor acquired for $540,800 in May well. Just months later, Opendoor put the house on the current market for $581,000. Having said that, it certainly didn’t get a lot of bites. As of Thursday, the list cost was down to just $490,000. Which is 10.4{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} under what Opendoor paid for the property this spring.

Las Vegas proceeds to change fast—historically quick. Involving March and August, Las Vegas stock spiked 192{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}. While Las Vegas house values—which are lagged—are previously down 3{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} from their 2022 peak.

Back again in the early 2000s, residence flippers targeted rapid-rising Sunbelt towns like Phoenix. That speculation eventually labored towards Phoenix as soon as the housing bubble popped in 2008. See, as the housing cycle “rolled over,” all those traders were being the initial to run for the exits. That pileup of stock, of study course, only set even further downward strain on Phoenix.

Speedy-forward to currently, and Phoenix is when yet again at the heart of a cooling housing industry: Between March and August, Phoenix stock was up 317{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}. Which is by now translating into a sharp house price tag decrease. According to Zillow, Phoenix residence values are down 4.4{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} from their 2022 peak.

Moody’s Analytics main economist Mark Zandi expects household selling prices in drastically “overvalued” housing marketplaces like Boise, Phoenix, and Las Vegas to slide 10{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} to 15{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} in between peak-to-trough. But that assumes no economic downturn. If an economic downturn hits the country, Zandi states price ranges markets like Boise, Las Vegas, and Phoenix could decline 20{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} to 25{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}.

Let us be very clear: Not each individual U.S. housing market is shifting like Boise, Phoenix, and Las Vegas.

In the Higher New York metro, spiked mortgage loan rates unquestionably impacted the current market, having said that, inventory on a calendar year-above-yr basis is nevertheless down. And in accordance to Zillow, Greater New York household values only fell .2{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} concerning May well and August.

The reason? Not like bubbly markets in the South and West, New York is not as detached from underlying fundamentals. In accordance to Moody’s Analytics, Las Vegas and Phoenix are “overvalued” by 53.3{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} and 53.8{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}, respectively. Although Larger New York is “overvalued” by just 7.4{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}.

Merely place: The ongoing housing correction is training us that housing fundamentals even now make any difference.

Want to remain up to date on the shifting U.S. housing sector? Stick to me on Twitter at @NewsLambert.

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