GM Channel Stuffing Hits Record In April

Tyler Durden's picture

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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LRC Fan's picture

This is certainly Bullish

-Phil LeBeau

dbach's picture

It could mean they are expecting a pick up in sales. Why they would believe that is beyond me though. What's the standard inventory held at a dealership? Judging from the Honda dealer across the street it is at least a few months worth...

BS_Merchant's picture

Bullish for GM - all those pristine assets sitting on forecourts appreciating.

That’s what happens to assets when inflation runs riot, doesn’t it?

LawsofPhysics's picture

Should I leave my garage open so they can stuff that full too?  Just saying.

NotApplicable's picture

Coming Soon! A pricing plan you can't refuse.

Congress will outlaw any car older than X years old, but to make up for it, they will distribute GM inventory to the masses with 1$ scratch-off tickets in payment for your now illegal trade-in.

So, instead of an old pickup truck, American trailers will have a shiny new Camaro in the drive, right next to the broken TV and the toilet that your fat-ass sister inlaw busted.

Ain't America Great!

r101958's picture

Sounds like what they do with car insurance in Japan. Surprised they haven't tried that yet.

Problem Is's picture

Stuffed Inventory = Car Sales...
Is tax payer backed GMAC still offering no money down liar loans?

Maybe I can gets me a Volt...

Cognitive Dissonance's picture

Stuffed Inventory

Are we talking about car sales or S&M sexual practices?

Either one is OK with me. I just want to make sure I'm on the same page as everyone else.

hedgeless_horseman's picture


Mike Flannery
Flannery Ford

Bring your wife and title in
and we'll dicker.




TruthInSunshine's picture

GM has NOTHING on The Dynamic Duo of Bernank-Jeetner, who are channel stuffing tens of billions each month.

Problem Is's picture

Nice link Drag:

"General Motors Co. reported a 26% surge in April vehicle sales... helping to push the company’s stock back above its initial public offering price."

Yeah that explains it...

ReallySparky's picture

Can't layoff those union workers, that would be bad publicity.

hedgeless_horseman's picture

I would love to see a historical chart of the % of sales to government fleets.

All .gov employees in my town are driving brand new GMs funded by the 50% of us that pay taxes.

Two things I don't imagine I will ever be.  A government employee, and a GM driver.

gkm's picture

My parents just went and bought a used car from a GM dealer.  Apparently they couldn't find a parking spot on the dealer's lot due to the inventory.  

NOTW777's picture

socal lots are bulging

SDRII's picture

Ally finanical (Q1)


dont look behind the curtain

#1 overall U.S. auto lender



– U.S. originations of $11.6 billion, up 25% from 4Q10

U.S. consumer originations up 25% quarter-over-quarter and 93% year-over-year




Cognitive Dissonance's picture

Once again we find that the old tricks are still the best tricks........until they aren't. The great thing about moral hazard is that you never pay the consequences for the tricks you play.

Let the games continue.

r101958's picture

Seems something like Atlas Shrugged.

Ruffcut's picture

It worked a while krispy Kream Donuts.

Ok, I'll let them stuff a couple in my garage.

Cognitive Dissonance's picture

Krispy Kreme Donuts? Just be careful when backing up. They are a bit messy when run over. :>)

Jim B's picture

Pay me now or pay me later.....

Seasmoke's picture

and just think GM dealers fought to keep their dealerships open.....who is paying the floor plan for these clunkers

chunkylover42's picture

of course they fought to keep dealerships open - where else were they going to put cars that nobody wants to buy?

topcallingtroll's picture

You misunderstood. Dealers fought to stay open. Government motors fought to close them.

Don Birnam's picture

Seeing that GM obviously cannot sell updated product, perhaps they should simply declare defeat -- and go Old Skool. At this point, Government Motors has little else to lose -- hey, the Seventies are chic these days. Retool and re-issue an American classic. 

Can you drive a five-speed in plats, is the question.

Cognitive Dissonance's picture

I bought that exact year and model for my ex wife.

Maybe that's why she's my ex. :>)

Don Birnam's picture

Was it in this fashionable Polyester Pea Green with the creme racing stripe, and Midnight Black vinyl seats ? Perhaps you should have splurged the big bucks on her, and gone with the Chevy Vega instead. 

Cognitive Dissonance's picture

I bought the Vega for myself, the black wagon with a stick shift, mag wheels and the shitty all aluminum engine (no steel cylinder liners) that was already burning oil as I drove it over the dealership curb. I was young, poor and stupid, stupid, stupid. Not much has changed since then except the young thingy.

Maybe that's why I'm the ex-husband. :>)

Cognitive Dissonance's picture

At first the smoke was white. After the odometer turned the first 1,000 miles it was all down hill from there.

Clamdigger's picture

It's possible your Vega was electing a pope.

Cognitive Dissonance's picture

As the dealership informed me "They all do that". :>)

Bagbalm's picture

I had the same thing. Pulled the engine and strapped the block on the boring mill - hogged out the cylinders and heated the block up with a torch. Had four nice steel sleeves in the shop freezer and slid them home. They warmed up and were tight as can be - was an excellent engine after that.

topcallingtroll's picture

Now that is a great idea!

I would consider a two ton 8 cylinder all steel roadmonster.

Don Birnam's picture

I'll suggest a limited run of this little jewel. 

1966 GTO...with the 389 Tri-Power V-8.

ebworthen's picture

The men who conceived and built beautiful machines like that are dead and gone; replaced by iPud thumbing pussies using Lego plastic and Mexican junk parts to slap together computerized spaghetti vacuum hose wunderclunkers.

topcallingtroll's picture

Could not have said it better myself.

Don Birnam's picture


It's essentially CAD software now. Very little else. 

topcallingtroll's picture

I would be first in line.

The SS Impala comes close but is still not the funmobile of a 60's GTO.

ebworthen's picture


My 65 GTO was soooo nice.

Other than the "slip and slide powerglide" 2-speed automatic, but I grew to like it.

That thing had so much torque that a two speed automatic was all it needed.

The hood was so big and so long it was like steering a boat.

And the back seat, did I tell you about the back seat?  The back seat was like a living room couch.

And the trunk...the trunk was as big as as some bedrooms...and yes, I enjoyed splaying a beauty on both the back seat and the trunk lid, flat big and at waist height.  Oh...the good 'ole days....omg...


Spastica Rex's picture

I find it hard to believe that was a five speed.

Don Birnam's picture

The Seventies models all had 4-speeds as standard package, yes. The 5-speed was introduced in the early Eighties. The question remains, however: can one drive manual in plats ?

ebworthen's picture


I had a Chevette, 1981 five speed four door.

The body was solid (Fischer - remember that?) and the little four cylinder was a pretty good motor.  The execution was the problem. 

Plastic housing holding the clutch wire to firewall broke, not covered under warranty.

Exhaust Gas Recirculation tubes rusted through at 23,000 miles.  They admitted it was defective and gave me the part  but wanted to charge me $225 for the labor to swap it out (?). 

I went Japanese after I passed the Chevette on when I got tired of fixing it.


topcallingtroll's picture

Please always refer to them as government motors and never buy their products.

They bribed the big creditors with TARP, and screwed minority unsecured bondholders, upending a century of established bankruptcy law.

Cdad's picture

I'm sure Phil "flaps up" Le Beau will be along shortly on the BlowHorn [CNBC] to explain the truth about GM "sales."  After all, that is his very job, to get to the truth about the auto industry, and he has been so busy this year explaining to the American people how bailed out GM is a national treasure.


SHOCKER!  Phil "flaps up" Le Beau passes on his intraday opportunity to straighten out the facts about GM.  His nonreporting reporting is followed up by a criminal syndicate Wall Street banker parade of bullish commentary on the BlowHorn's Strategy Session.  SHOCKER!

Additional Additional:  momo freak Joe Teranova makes the call long GM while calling the silver trade over.  Brilliant!  The propaganda machine is in full stride even as all the momentum stocks that have lifted this market to infinity bullishness are ALL breaking down.