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namely the firm's propensity to dump as much inventory as possible on dealer floors.
Every brand does this. It is not uniquely GM.
Granted, many have been quick to mock, ridicule and ignore our glaringly obvious findings...
There are a few reasons why some have mocked ZH's reoccurring "channel stuffing" articles.
First, ZH leads the reader to believe that GM is purposely stuffing dealer inventory so the monthly sales figures reported by GM appear better than they really are. This is just not true. The sales figures reported on the 1st are sales of specific VIN's attached to specific consumers. The first sentence in GM's press release confirms this, "General Motor's dealerships in the US reported 215,xxx sales...."
If you're claim was correct, the press release would say, "GM reported 215,xxx sales to dealerships in June...." or "GM dealers purchased 215,xxx from the manufacturer...."
In reality, the only credible conversation about "channel stuffing" is exactly what Business Week reported: specifically, GM has far too much Silverado inventory sitting on dealer lots. Nowhere in the BW article is there any mention of GM distorting monthly sales figures by producing too much truck inventory, which is the angle that ZH takes.
GM's bloated inventory rests squarely on truck production. Their inventory of cars and small/medium SUV's are perfectly normal and within industry standards. Again, it's solely a truck problem.
Now, the real reason GM has too much truck inventory is not because they're trying to fluff month-end sales numbers (which is the angle ZH took); rather, GM underestimated the rise in oil prices in the first half of this year, and overestimated consumer's willingness to ignore it. The extreme volatility of gas prices over the past 3 years has permanently affected the market's appetite for large trucks, SUVs, etc.
This fear of gas prices can be proven by the fact that Ford sold more V6 trucks than V8's in the month of May, which was the first time this happened in over 20 years (!). If consumers are shopping for trucks, they have turned to smaller, more fuel efficient engines, and Ford was far better prepared for this. GM, as always, made a massive error in judgement.
I absolutely loathe GM, but I think it's important for readers to understand that the "channel stuffing" theme you've been preaching is greatly distorted. The only inventory problem GM has is with trucks, and that's a function of consumers still fretting over gas prices. All of this has nothing to do with fudging monthly sales numbers.
Read GM's financial statements, you fucking dolt.
"we generally recognize revenue upon the release of the vehicle to the carrier responsible for transporting it to the dealer" 2010 GM Annual Report, pg. 44
Please do some research before you go on a long rant that is inaccurate. Else, you'll continue to look like a dipshit.
Recoginzing revenue is entirely different than the sales figures that are released on the first of each month. Idiot.
Your apology is accepted in advance.
Holy shit, you're dumb as rocks.
"For the month, Chevrolet Cruze had its best retail sales since launch as Chevrolet dealers reported 18,996 retail deliveries." GM May Sales Release
YOU ARE A FUCKING TARD. Didn't I just tell you to do some research before posting, son?
Dude. What the fuck is your problem in understanding this?
"....Chevrolet dealers reported 18,996 retail deliveries...." Operative word: retail. Not wholesale. How can you possibly be confused by this? When a dealer reports a "retail delivery" that means it fucking sold it to a retail customer. Notice how it doesn't say "wholesale deliveries from the manufacturer."
Just read the fucking first sentence of GM's press release, which I've pointed out numerous times:
"General Motors dealers in the United States reported 215,358 total sales...."
It can't be any clearer. It doesn't say the GM factories reported 215,358 sales. It doesn't say the dealer bought 215,358 cars from the factories. It clearly states the dealers reported 215,358 sales. HOW FUCKING CLEAR CAN IT POSSIBLY BE?
Of course, you probably won't believe it, so I've got a risk free trade for you. Take all the fucking money you have and buy GM stock. If GM stock goes up, you win. If GM stock goes down, you win.... you can sue them for misleading investors. If your stupid claims are correct, and the month-end sales reported on July 1st are truly not "dealer sales" and are actually dealer "purchases" then you can sue them for your losses (plus punitive damages) because the press release clearly states otherwise. Call it the "Detroit put."
There you go - a guaranteed risk-free trade, and you didn't even have to pay 2/20 for it. And this doesn't even take into consideration the instant fame you'd receive for exposing GM's blatant sales lies.
Everything needed to contradict everything you have said from your initial and subsequent posts is available on the GM.
AGAIN, DO SOME RESEARCH IDIOT. I'M CAN'T STEER YOU THROUGH EVERY ARGUMENT IN LIFE. Also, please start with reading what channel stuffing is, as I think a lot of you misinformation comes from not understanding basic accounting and financial terminology. Might be useful to go look at the definition of retail delivery that GM uses. I don't think it means what you think it means.
The dealer inventory chart above says it all. NOT GOOD.
The other day I saw a brand new Ford Fusion with US government tags on it. Why the fuck is the US government buying Fords when it owns GM? Don't they get a good enough "employee discount"?
Its not about the price...its in the quality. Why would the government trust in a product that they themselves build?
Or, it's Fords' version of their bailout.
Here at Government Motors, our cars suck so bad, we won't even buy them.
Actually I've been saying this since the whole GM fiasco began.
These are WAR companies. The retail end of the business is the smoke and mirrors.
In real terms, I'll bet it's been a long time since GM made any money whatsoever. It's been a bank (GMAC), much like GE etc. anyways.
So none of this channel stuffing crap will matter when GM is wrapped in Red White an dBlue.
Around these parts, the Sheriff's Department are sporting around the county in brand new Chryslers. I've never seen them use Mopar products before. There must be some sort of subsidy going on.
or maybe they didn't like all the rear end problems with the po-po impalas. gm fixed them for the po but not everyone else. class action lawsuit.
Y'know...it's difficult to muster sympathy for someone that willingly drives an Impala.
CNBC will be sure to ignore this until someone loads the story into a GM truck and drives it into Becky Quick's dressing room. Then the story will be about Becky's stuffed channel and not GM's channel stuffing.
eew.. I threw up a little CD.. ;p
My trousers moved.
Comments like this just beg for a "like" button.
I'm still laughing.
In your next life, a comedian...frigging hilarious!
Becky is pretty, Warren kiss-up is a turn off though
Trish is the best on CNBS, IMHO. Maybe not fully up to speed on everything, however she can maintain a non-biased perspective during interviews few can on that network (including Santelli).
Damn woman! I <JUNK> you!
A CNBC Anchorette is simply boob(s) in a sweater...
Not to be confused with Cramer the Clown who is a sweating boob...
BTW: I had to junk you... Stevie "The Rat" Ratner's sock puppet was here junking every post in sight... but you...
To be fair to the fairer sex, that means that CNBC anchors are Dicks in Depends.
To be fair... Larry "Cokehead" Kudlow's Depends ARE prescription...
Larry has IBS... Irritable Bowel Syndrome...
Larry is IBS.
dude, I was being sarcastic
I would hazard a guess that the profit on those trucks that they have counted as sales is just a "tad" higher than the more popular models they are selling. Need profit: make some.
What's this? Mark-to-unicorn accounting doesn't work with atoms, only binary data in a spreadsheet? Whodathunkit?
Maybe they should drop trucks (turkeys) from helicopters. Oops, been tried before.
Last week I was 2 week in the New York area.
I amazed me that you hardly see new cars in the US.
remember Chev used the old Bob Seger song "Like a rock"
hope that happens to the stock....
They're just pulling forward demand. This is .gov-owned motors we're talking about here. Must.Save.First.Windbag in '12. That be the business plan.
No failing for GM until the pensions are fully funded for every vested/near vested UAW and the election is over.
In the mean time, I wonder if the Chinese will name a Ghost City "Silverado".
Dewd, the Chinese are so far ahead of the curve it isn't funny. This week in Shanghai they opened a new cafe, perhaps DSK inspired; it's called Maid Cafe, and yes, the waitresses/servants are appropriately attired.
Servers are outfitted in black and white French maid fetish cosplay outfits, and greet you at the door with a 'Is there anything I can do to serve you, master/husband?' (the term for husband is the same as master [??] in Japanese).
gms recidivism rate beginning to match that of child molesters...
Nah, child molesters start to taper off in their 40s and 50s, GM, not so much.
What? Lay off the 'Nancy Grace" Yes, I agree Casey did the O.J. 'slip away'
Hey tool? Shoot me a GM chart! Better yet ! Buy (f) on the dips.
Cars sitting on dealer lots. People digging holes for 4 hours a day and then filling them the other 4 hours. Printed fiat stuffed in bottles and burried accross the USeless for people to find and "juice" the ebbublemy.
I fail to see the problem here.
Problems in order presented:
1. All those autos on lots require mucho concrete/asphalt (bad for environment)
2. Digging holes disturbs worms (bad for enviro)
3. Making glass bottles requires energy needed to produce useless autos (bad for enviro)
4. Juice contains GMOs from evil Monsanto (bad for humans)
If the people digging the holes received the fiat and gave it to the car dealership, they might need a new salesman...but your estimation of where the fiat actually went is off by several hundred ladder rungs; the bottles are all buried in the PDs backyard and the only holes being dug and filled are by prisoners and goldbugs.
Relax, you are doing better than Cassandra did.
TYLER / et al - Any info beyond GM?
How does this translate for the US's other "big 2"? Is this a GM specific issue or same at Ford?
Just trying to discern if those not effected by the Japanese situation (who were supposed to take this opportunity to gain marketshare) are instead just gaining dealerspace?
Also, any POV on this and potential of pull forward via tax credits ending in China?
Just curious, if US lots are stuffed, China just ended their tax breaks...hmmm, is this all priced in (since stock is still priced above $0 I'm guessing not)?
From Ford Q1 2011 ReportTotal 2010 2011March 31 679 769December 31 -- Prior Year 677 734
It appears in First quarter up 35000
* Excludes Volvo** South America dealer stocks are based, in part, on estimated vehicle sales for the six major markets in that region*** Europe dealer stocks are based, in part, on estimated vehicle sales for the 19 major markets in that region**** Asia Pacific Africa dealer stocks are based, in part, on estimated vehicle sales for our 12 major markets in that region
perhaps the massive boycott by all the screwed over GM bondholders is starting to be felt...
...pray ye are correct, per one screwee.
The sooner the Sheep are awakened to the Robbery and Wide Spread Systemic Treason the Sooner we can have Taxation with Representation Back!
The Lobby Whores have Robbed the World Blind!
The reason America is Broke is becuase the Top 1% does NOT! Pay Taxes!!
That's not the reason why the US is broke. It's not a taxation issue. In a list too long to suggest it's complete: useless wars, MIC, welfare, SS, Medicare, Medicaid, bailouts, etc., etc., etc.
Usually I get your stuff, but this one's pretty far off...
has there ever been in history a government owned entity that didn't over produce? i don't find this news. SELLING those vehicles is news of course--the fact that we have a car glut is not. I'm not predicting a price war but that is "the norm" in these matters--and the point of Government Motors is NOT to run it like a business. We shall see. Obviously the quality of the vehicles produced at The GM is far better as are the look and feel. Perhaps a "recycling plan" is in order then? Of course we can always just give up and walk away from the industry as well...
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