Do You See What Happens, Larry, When Government Motors Stuff Channels?

Tyler Durden's picture

There is a reason Zero Hedge has been on GM's derriere over the past year in disclosing the firm's not so covert channel stuffing mandate. Just released is the validation:


Translation: more furloughs, less tax receipts by Tim Jeethner.

As a reminder from yesterday:

GM Channel Stuffing Hits Record In April

Earlier today, GM posted better than expected April car sales, with
total US sales up 26.4% on expectations of 14%. How much of this is due
to a Toyota impairment is unclear. What is clear is that channel
stuffing at Government Motors, whose Chinese sales are far more
important than US sales these days, just hit a new all time record of 577,000, higher than the previous record of 574,000 from March, and 149,000 higher
compared to a year ago. The good thing is that GM will never be able to
complain about lack of inventory: it now has two and a half months
worth of sales equivalent parked on warehouse financed dealer
storefronts, in the form of rapidly depreciating autos.

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plocequ1's picture

Is that you Larry? Is this me?

cossack55's picture

Motorized Shit Bitchezzzz!!!

EscapeKey's picture

Ooh, look at those horrible deflationary pressures ahead; as prices are slashed, "money will disappear from the economy", and the Fed will clearly need to print another $5tn.

drink or die's picture

They can use all that excess production capacity to make tanks when WW3 starts.

cossack55's picture

Wow. So if GM made 10,000 Main Battle Tanks, the US would need about 1.7 million mechanics for the tanks whick would drop the unemployment number and Obummer would get re-elected. What a plan.

Long-John-Silver's picture

Where are they going to get all those Mechanics, Machinists, and Welders? Please remember that all our children go to university where they are indoctrinated and told they are too good for manual labour.

Almost Solvent's picture

Forget the kids today - there are enough unemployed over 50 to put to work building tanks and guns and other deadly weapons.

LFMayor's picture

The headlight division could start cranking out grease guns like back in the day.

Or they could start producing bolt on kits for bicycles, so you can have some cargo capacity when the oil gives out.

NotAllowed's picture

I own a chevy 2500 with a 6.0 litre.  Awesome truck but terrible fuel mileage.  Cant wait till they make a fuel efficient full size truck capable of towing something decent.

traderjoe's picture

That's NotAllowed. 

No, sort of seriously, when do you think that will happen?

Only tangentially, did you see the documentary on why/how they killed the electric car? In particular the part where the GM mechanic said they would never need much maintenance at all (vastly, vastly fewer wear and tear and/or oily parts). What do you think is the most profitable part of a dealership. Did you say parts and service?! We have a winner! 

New_Meat's picture


"...why/how they killed the electric car?..."

Was that the coal-fired car?  or the nuclear car?  or the $41k car with the $9k subsidy that only Immelt can afford?  Thermo and engineering economy are so  '80s.

- Ned

traderjoe's picture

"while the auto companies feared short term costs for EV development and long term revenue loss because EVs require little maintenance and no tuneups."

LFMayor's picture

too bad there's this shit called physics that's in their way. 

No replacement for displacement.

Long-John-Silver's picture

The law of thermodynamics can not be wished or legislated. It is what it is and in every case, you lose.

Gasoline engines need a 14 to 1 air-fuel ratio. Higher or lower ratios reduces power and efficiency. Modern fuel injection systems have maximized efficiency and so the only other option to improve fuel mileage is to make the vehicle lighter. This never works with trucks.

Sancho Ponzi's picture

Uh, direct injection improves volumetric efficiency by allowing for higher compression ratios, and turbocharged vehicles typically obtain better than 100% volumetric effiency.

But those technologies require vision, money, and R&D. Sorry, GM.

Andy_Jackson_Jihad's picture

Or operate on the lean side of stoicheometric. 

When coasting, my TDI ECU reports 0.0 ml of fuel per stroke is used.

Diesel bitches!

ICTruth's picture

Oh yea! I drive a 1996 tdi wagon. 53mpg


Antarctico's picture

Hybrid technology would be a good choice for a full sized truck.  Just think of all the kinetic energy that gets blasted out as heat every time you hit the brakes, but instead of being wasted as heat, it gets turned into electricity and that electricity gets stored for getting your big iron back up to speed.  GM's recent bullshit weak hybrid truck does not count as it was better at being an elaborate marketing gimmick than an efficient energy reclamation system.  On the other hand, Toyota's hybrid technology is both efficient and effective -- GM should license it like Ford already has.  One other nice thing about a full sized hybrid truck, outside of the much improved gas mileage, is electric motors have maximum torque at zero RPM, and that makes pulling away from a light with a big, honking trailer so much easier.

Nolsgrad's picture


" if sales were to maintain course this year — that each dealership will only sell, on average, 84 vehicles in 2011. But that's actually good news. Because last year the average was 64 vehicles per dealership."

NotApplicable's picture

Wow, 5 per month last year, but up to 7 this year.

Break out the champagne!

Yen Cross's picture

I saw the 9m figure. In 08 the banks were reckless (pun intended) 15-16 globally was the idea in 08. Knock the cost and some natural disasters(and dysfunctional banking) into the figures and the numbers, and we see 11.5. Not to mention the Junk in china, and That offsets Korea.

oogs66's picture

111 days of inventory of pick-up trucks...hmmmm

SheepDog-One's picture

Yea, and there are lines out the door of people jumping all over a new full size dually truck so 111 days is rock solid figure! Just like housing inventory supply numbers, housing sitting empty for 3 years are getting jumped on like free hookers today!

Thorny Xi's picture

Yeah, what's up with that?  I've thought it was just me, and the few places I was tracking on Zillow - places that have been listed for over 500 days - poof - bought up this past month.  Am I missing the free money giveaway?


traderjoe's picture

With skyrocketing gas prices into the summer and then the '12's coming out. 

Ouch, that's going to hurt.  

TheGreatPonzi's picture

Am I the only one amazed that Americans, for the most part, don't care about the fact their country has adopted central planning? 

SheepDog-One's picture

I dont know if its that they 'dont care'...just that the vast majority americans are too damn stupid to have any idea whats really going on and how horrible it always ends up being. Theyre jamming the cars with groceries bought on food stamps for now and enjoying the big screen while stuffing their faces, we'll see how happy they are when its all gone soon.

cossack55's picture

I am getting very, very impatient. 

LFMayor's picture

Being fatalistic here, but exactly what the hell is a person supposed to do about it?  Vote?  They did, had "landslides" with their tea party upset the apple cart candidates.  And not a single fucking thing changed. Hell, it didn't even slow down.  Nor will there be change, until those free groceries aren't being stuffed into cars that they can't afford to purchase gasoline for. 

The game is rigged, get your free groceries while you can, after all, you paid for them.  I recommend getting the big bags of pintos and rice, and a lot of iodized salt.

I do agree with you about the happy part though man,  all the ones conditioned to the easy path will fall over in droves, or follow the bread crumbs into camps? 

MachoMan's picture

either that or the conditioned ones vote to have you conditioned also...  funny how that works...  [they're already breaking it off in asses of the last remaining holdouts of the middle class]

Blorf's picture

Silver bubble, meet Chevy Silverado bubble

Boilermaker's picture

Chevy Silverado meet $4.00+ gasoline.  Not a bubble, it's a reality.

If it makes you feel better, that Silverado would be a good investment to buy it now before your dollars are debased into nothingness.  You could actually live in a Silverado, at least.

LFMayor's picture

down by the river?   Oh, no, that would have to be a van.

Boilermaker's picture

Wherever the carp are biting!

wisefool's picture

Naw. Americans are too lazy for that, but (as usual) the chinese are here to the rescue. The asian snakehead carp is reaching record numbers in north american waterways, and you dont even have to cast a line, bait a hook, or throw a net. they will literaly jump in the boat. 

So everybody get on those bad motorscooters, or pickup trucks, and pull sombody in a dinghy, panama canal style.

When you get those badboys into the kitchen, cook'em like you would a possum. Brine it for a couple of days, Pressure cook, pull the bones, deep fry, drain and rinse. put a 1/2 pound of salt, cayene, nitrites, nitrates into a ziplock bag with it and freeze it for two weeks.

Put it in the microwave, and douse it with sometype of HFC sauce. I'm loving it!

Long-John-Silver's picture

typically with missing engine and transmission.

Boilermaker's picture

Mis-matched door and quarter-panel colors...nice.

Antarctico's picture

down by the river?

I want my steady diet of government cheese!

oogs66's picture

Kentucky giving GM $7.5 million in incentives.  GM giving Kentucky 250 jobs.  $30k per job, yeah, economy is growing organically!

Boilermaker's picture

That's not even good math.  Incentives isn't cash out of pocket.  It's just cash not collected that would have been, right?  And it isn't $30k per job.  It's $30k over (insert number of years here) per job in incentives.

Fucking Christ...I see you're taking the Glenn Beck home study courses.

Non Passaran's picture

But the bottom line is those $30K/job over X years will have to be taken from other, tax-paying folks.

Boilermaker's picture

That was Kentucky's decision or GM's?  There isn't anything 'taken' from anybody.  They are incentives (which, I'm sure are probably 'abatements').

oogs66's picture

Was it the decision of the taxpayer's of Kentucky, or one powerful official who did it for his region and because he enjoyed all the expensive dinners while the terms of jobs vs 'abatements' was negotiated?  Hasn't GM in particular received enough from the government for the jobs it produces?

disabledvet's picture

they fired everybody.  Pontiac gone/Saturn gone.  I do agree "Los Angeles was a mistake."

Boilermaker's picture

So, you think GM forced itself onto the taxpayers of Kentucky?  What if I told you that several states were fighting for GM to produce there?

It's not in the best interest of the federal taxpayers for GM to take the best deal possible?  You can't have it both ways.

It's better for all the Big 3 to liquidate and hand over the entire industry to foreign firms.  That's the best option now?

jwfxfox11's picture

Walter: You're going to enter a world of pain, son.  We know this is your homework.  We know you stole a car.

Dude: And the fucking money!

Walter: And the fucking money.  And we know that this is your homework, Larry.

Walter: You're gonna KILL your FATHER, Larry!!!

Extremist Tan's picture

"Oh no, he's sick."  We need to draw a line in the sand.

Problem Is's picture

Dude: "Oh, Jesus, what's that smell, man?"

Auto Circus Cop: "Yeah, probably a vagrant slept in the car. Or maybe just used it as a toilet and moved on."

augie's picture

I was wonder where all the urban achieves were....


Problem Is's picture

Dude: "Different mothers, huh? Racially he's pretty cool?"