GM Parks 510,000 Cars With Dealers, 31% Higher Than Year Earlier

Tyler Durden's picture

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gwar5's picture

Sub-prime car loans. Perfekt.

attst487's picture

Just announced: Obama's Universal Transportation Plan, all US citizens are required to buy a GM car whether they want one or not. Everyone who already owns a GM will be required to foot the bill for those who can't afford a new GM.

Zero Govt's picture

the Trabbant is only 2 model cycles away

HamyWanger's picture

+21.8% of sales yoy is incredible news, and proves that the global economic recovery is a reality.

America will come out of this crisis richer and stronger than ever.

The permadoomers are once again proven wrong.

Village Idiot's picture

"Hamy on wry."

often overlooked.  lol.

OpenEyes's picture

I'm pretty sure that Helicopter Ben is going to drop thousands of "Dow 12,000" hats on those crowds in Cairo today too!

Popo's picture

And the factors that led to the crisis?  All fixed to your satisfaction,Harry?

TheGreatPonzi's picture

Hamy and Harry are twin trolls.

Popo's picture

Furthermore, how does one get a "global" economic recovery from this story?

Cleve Meater's picture

Sorry Hamy... Look at the numbers.  It's easy to have higher sales when you're losing money on each vehicle.  Government Motors is losing money on the Volt (it costs $41K to produce and sells for $40K).  Next, look at the incentives they're offering -- off the charts higher than all of the other manufacturers.  All these guys are doing is buying market share.  But don't take my word for it... Here's the actual incentive numbers from Edmunds:

                  Jan. '11    Dec. '10    Jan. '10    Jan to Jan    Dec to Jan
Chrysler      3386        3522        3017        12.23%        -3.86%
Ford            2859        3304        3073        -6.96%        -13.47%
GM              3762        3255        2910       29.28%        15.58%
Honda         1587         1561        1216       30.51%         1.67%
Nissan         2231         2229        2419       -7.77%         0.09%
Toyota         2012         2055        1454       38.38%        -2.09%

Look at them Dec. '10 to Jan. '11 numbers... Why, it looks like every other manufacturer is cutting incentives or staying even.  GM's incentives are up over 15% from December leading to this comment from Edmunds:

General Motors’ incentive spend in January certainly raises some eyebrows,” said Caldwell. “GM spent more on incentives in January than any of their Big 6 rivals, even as they sold more 2011 model year vehicles. This suggests that their new model year vehicles are more heavily discounted than one might expect."

 

Kristian's picture

Business as usual, everything on credit.

Ragnarok's picture

Volatility in Silver!

economists_do_it_with_models's picture

Over/under on HamyWanger getting junked 7 1/2.

Oh regional Indian's picture

Like my old company, United Technologies, GM is a military supplier pretending to be a consumer company.

They are government motors for a reason.

All this stuffing drama will be cheered with higher stock prices for GM.

Give me Moretors.

ORI

 

http://aadivaahan.wordpress.com/2010/06/16/time-faster-now/

 

JLee2027's picture

Sad to see the largest company in history blow itself up like it did. 

But, they were unable or unwilling to adapt. 

the not so mighty maximiza's picture

This is good news if your looking for a new UAW built crap box.

SheepDog-One's picture

Took a ride in someones new GM truck the other day, it is crap Id never buy it.

sethstorm's picture

Say what you want about General Motors, but that leaves more for the people that don't have the false preconceptions about Detroit's inability to produce with quality. 

sun tzu's picture

They now have 510,000 more cars to buy

bunkermeatheadprogeny's picture

It's all GM has left, one last big inventory shell game to lure customers and investors into thinking TBTF works.

 

HarryWanger's picture

Perspective: They put more cars on the lot because demand is clearly back for autos. Last year, inventories were much leaner since the economy was still stalled and, rightly so, the automakers kept inventories low.

Now we're seeing strong demand and of course that leads to more inventory. Economics 101, kids.

Mark McGoldrick's picture

That is perfectly accurate, Harry.

 

If GM sales are up 23% YoY, and their inventory is up 30% YoY.....  why is this correlation a big deal that warrants a headline?  

This seems perfectly reasonable in an environment of growing sales and as Spring approaches, which is typically a stronger sales season.  

There is absolutely nothing abnormal about this data in the slightest.  

....the only component of consumer credit that is surging, non-revolving loans, indicates that virtually all car purchases are made based on the old formula of "no money down."

That makes zero sense. 

 

Bay of Pigs's picture

If you happen to scratch throught the surface by even a millimeter you'll find Harry's "analysis" is completely void and empty of honesty and truth. 

HarryWanger's picture

Yes, completely wrong...oh wait, Ford also had great sales just come through. So did Kia. I guess they spun those numbers too right guys? 

tellsometruth's picture

I've seen cooking of books at the dealership level at both a toyota dealer and a gm dealer oowned by a large corp

Mark McGoldrick's picture

Well, if you're referring to the broad theme of his posts across all threads, I can't answer to that because I don't follow him from thread to thread.  

But his comments about sales/inventories at GM are absolutely accurate. The correlation between growing sales and growing inventories is completely reasonable, and I hardly understand why that even needs to be stated. Despite all the efforts by ZH readers to find conspiracy or cynicism in everything, it's just not there in these numbers.  At all.  

 

JLee2027's picture

Or they just over-produced in response to anticipated demand which did not show up.

You cannot have a recovery with falling employment. Less people on payroll than a year ago. Where the hell is the recovery? Anyone who thinks those car sales are booming is an idiot. Stats can be manipulated, this is done all the time to improve the qtr, boost the stock, claim a recovery. The real issue is why HALF-A-MILLION cars are sitting unsold. But nothing will convince some people, who think all is rosy.

All is shit and it's getting worse, not better.

tellsometruth's picture

I like you, you are a free thinker

Bay of Pigs's picture

Come on Mark. His comments are NOT accurate. That's my point. You didn't scratch through the surface either by the looks of it.

Numbers? GM is dead man walking. It's a fucking zombie of a company. It should have been plowed under.

Is that clear enough without any kind of conspiracy talk?

Zero Govt's picture

so the sub-prime zero money down GM car-finance model is fab, fab, fab... Harry can't see a problem here, like sub-prime property never happened... way to go Harry

SheepDog-One's picture

Not according to my brother in law at one of the biggest GM dealerships west of St Louis, he tells me sales are crap.

Cognitive Dissonance's picture

The answer is simple. Your brother-in-law is working at the only under performing GM dealership in the world.

whatz that smell's picture

wealth effect: stock market higher, health care costs higher, unemployment higher, food/energy prices higher, taxes higher, poverty higher, bonuses higher, foreclosures higher, homelessness higher, crime rate higher, bankruptcies higher, unsold cars higher... it's economics 101.

praise be the bernank! may he ease a thousand years!

buzzsaw99's picture

zero down, no job, 490 fico is their typical customer.

Votewithabullet's picture

A high volume Dayton dealer actually says you're golden if your score is over 390. He fucking says it. I didnt think the scores even went that low.

sethstorm's picture

They have to service the University kids coming in from Chicago(that couldn't get in at Notre Dame) somehow. That is, the same people who end up with parents buying them a $150k home in a suburb(and community) that doesn't want either of them.  

Privledged kids have to get their parent's Corvette, Jeep, or Ford from somewhere.  That is, unless you're one of the Reineke folks that rotate between $50-70k Ford trucks at their ATRD LLC home.

 

 

 

 

 

the grateful unemployed's picture

you've got it backwards, the automarkers shove cars out on the lot, if they don't sell Obama buys them, and what he doesn't buy Uncle Ben takes on his balance sheet. Socialism 101

Common_Cents22's picture

you got POMO and now you got POCO, permanent open car operations

Dixie Normous's picture

Sorry Harry, it's not econ 101, it's gambling 101 on the hope that the populace is buying all the BS "data" about a recovery and will finally start to load up on credit again so they can get themselves a nice new Caddy.

As I write, I see the offer from Scranton Caddy for a new CTS at 1.9% APR.  Great! Love to get my hands on a 15/25 mpg vehicle as gas approaches $4 a gallon.

sethstorm's picture

And you want the people to all be in golf carts, a la Europe and Asia?

No thank you.

Dixie Normous's picture

Did I say that fuckstick?

 

sethstorm's picture

You implied that by suggesting that 15/25 is "not enough". 

 

HungrySeagull's picture

Some of the new cars fit neatly inside my pickup truck bed behind the cab.

 

I would be more than happy to give some a lift after they exhaust what little batteries they carry with them.

 

We don't intend on buying a vehicle for at least 5 years.

Popo's picture

Market forces aren't at play here Harry.  You know that.  This isn't Econ 101 at all.  It's Economics 2.01b (Beta release) ...and it's vapor ware.