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In Latest Attempt To Boost Sagging Sales, GM Once Again Offering Interest-Free Financing On Numerous Models

Tyler Durden's picture




 

The "subprime" vehicle maker is back to its old bag of tricks - of the variety that ultimately resulting in its bankruptcy. After Zero Hedge had been pointing out for months that GM's sales number are in small part a function of its "inventory stuffing" gimmick, which has seen the number of cars held by dealers explode over the past 12 months as seen in the linked chart, leading us to speculate that GM is essentially recreating the AOL "channel stuffing" strategy that worked out oh so well, we now get confirmation that things are in fact far worse than even we had expected. Bloomberg reports that "General Motors Co. is offering buyers interest-free financing on some 2011 models after the company increased discounts and incentives to lead all major automakers’ U.S. sales gains last month." As of yesterday desperate car buyers who can't rub two dimes together, can drive to the local unemployment office in the luxury of their brand new Chevy Imapala, or alternatively pick a just as worthless Chevy Malibu, HHR WAgon, Traverse SUV, as well as a Silverado, Colorado and Avalanche pickups, which are now offered at either 72 or 60 months of interest-free loans. "The 60-month deal also applies to the Buick
Enclave and GMC Acadia SUVs and Sierra pickups." That pretty much covers the entire line up. And that's not all: "GM raised discounts 12 percent from a year earlier to an
estimated $3,732 per vehicle last month, the most among major
automakers and 45 percent more than the average, according to
researcher Autodata Corp." As Jeremy Anwyl, chief executive officer of Santa Monica, California-based Edmunds.com summarized it all too well: "GM’s rhetoric has been saying one thing -- discipline,
discipline, discipline -- and then their actions have been going
completely in another direction
." And as the stock, which is now firmly below the IPO prices indicates, the direction is a given: down. It is time for another poll (now that the one about the IPO price floor has been resolved): how long before GM files Chapter 22?

More on what is increasingly an act of desperation by the world's worst automaker, which not even Phil Lebeay, whose alleged IPO stock overallotment is now underwater, can spin his way out of.

GM doesn’t comment on specific incentive programs, Tom Henderson, a spokesman, said today in a telephone interview. GM still has the highest average transaction prices among mainstream automakers according to J.D. Power & Associates and GM data, he said, without giving specifics.

Reduced-rate financing also is being offered on other models, such as 2.9 percent, 60-month loans on the Chevy Cruze compact and 3.9 percent, 60-month loans on the Cadillac SRX, according to AIS.

And the truly sad thing is that GM's desperation-time strategies borne out of Obama's bizarro corporatofascist capitalism, are about to drag that far more viable carmaker, Ford, into the ground:

The automaker’s discounts may force rival Ford Motor Co. to increase its sales incentives, Anwyl said. GM’s U.S. sales in February climbed 46 percent, giving it a 20.8 percent share of the market last month, topping Ford’s 15.7 percent and Toyota Motor Corp.’s 14.3 percent, according to in Woodcliff Lake, New Jersey-based Autodata.

Ford Chief Executive Officer Alan Mulally has emphasized profitability over market share, with Ford boosting prices in February by $700 to $800 a vehicle from January, George Pipas, the automaker’s sales analyst, told reporters on Feb. 28.

“Up until three months ago, Ford was the one everybody was talking about,” Anwyl said. “The question is, ‘How long are they going to want to be the disciplined car company and allow GM to pick up their share?’”

Ford reduced average incentive spending 9.7 percent to $2,542 last month. The Dearborn, Michigan-based company’s 10 percent increase in February sales trailed GM and Toyota, which had a 42 percent gain after it raised spending 11 percent to $2,003. Chrysler Group LLC’s average discounts fell 14 percent to $3,052, while sales climbed 13 percent.

As for that Italian carmaker, Chrysler, which now uses a questionably non-selloutable Eminem as its model, forgetaboutit.

“I wonder if you’d see such a strong market, month after month” without the incentives from GM and Toyota, Lieb said in an interview yesterday. “Things are still extremely unpredictable. Look at fuel prices and the uncertainty and unrest in the Middle East.”

GM's latest gimmick is nothing new:

The reluctance on the part of the entire industry to raise incentives has probably constrained the market prior to last month, Edmunds’ Anwyl said. Incentives helped propel the U.S. to its all-time fastest auto sales pace in 2001 when GM introduced its no-interest campaign dubbed “Keep America Rolling,” after the September 11 terrorist attacks.

“If GM plans to make good on its promise to keep incentives in line with the industry average over the course of the year, it will have to post below-average incentives at some point,” Chris Ceraso, a New York-based analyst with Credit Suisse Group AG, wrote in a research report today. “This may get difficult, as its key competitors are showing a willingness to increase incentive levels in order to stay competitive.”

And so another attempt at recreating capitalism on the shoulders of predatory socialism fails.

 

 

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Wed, 03/02/2011 - 19:02 | 1013181 LawsofPhysics
LawsofPhysics's picture

Fucking awesome.  Time for a fire sale, please?

Wed, 03/02/2011 - 19:20 | 1013251 cougar_w
cougar_w's picture

Skip the sale part. Go straight to the fire.

Wed, 03/02/2011 - 20:15 | 1013434 Rusty Shorts
Rusty Shorts's picture

Glad you around again cougar.

 

Wait, what's this?

 

US Auto Sales Surge 27 Percent in February

http://www.youtube.com/watch?v=QWtLZIjkyuc&feature=feedu

Thu, 03/03/2011 - 05:03 | 1014343 OldPhart
OldPhart's picture

"how long before GM files Chapter 22?"

Ummm, I thought government entities had to file Chapter 9.

Thu, 03/03/2011 - 09:17 | 1014532 johnQpublic
johnQpublic's picture

'how long?'

 

not for days...

oops

not four days

Wed, 03/02/2011 - 19:03 | 1013183 EscapeKey
EscapeKey's picture

Someone is trying to keep the price up, so he can cash out his stock options in time.

Wed, 03/02/2011 - 19:08 | 1013205 mynhair
mynhair's picture

That someone better hurry.

Wed, 03/02/2011 - 19:06 | 1013201 Just Observing
Just Observing's picture

Been car shopping this week.  Tried to look at a Chevy Envoy, but the sales person acted like he didn't give a crap about showing us one.  We bought a Subaru Outback.

Wed, 03/02/2011 - 19:31 | 1013291 mynhair
mynhair's picture

F did that to us 6 months ago.  Went with an Accent.

Wed, 03/02/2011 - 20:00 | 1013396 Logans_Run
Logans_Run's picture

You can thank the sales person for directing you toward the Subi. You will be much happier in the long run.

Wed, 03/02/2011 - 20:17 | 1013447 ghostfaceinvestah
ghostfaceinvestah's picture

agreed, those are very nice cars for the money

Wed, 03/02/2011 - 22:15 | 1013699 DrSandman
DrSandman's picture

Sure -- as long as you don't have to buy premium gas for the 20mpg gas hog.  Oh wait...

Thu, 03/03/2011 - 00:53 | 1014096 MarketTruth
MarketTruth's picture

Agree, Subie is FAR BETTER built and more durable vehicle than a Government Motors car.

Wed, 03/02/2011 - 23:10 | 1013842 A Nanny Moose
A Nanny Moose's picture

Agreed. Have a 2000 Forester with 240K miles on original clutch and rear brakes. Never have to chain up for snow. Dirt, ice, pavement, gravel it's all the same. Once you drive AWD you won't go back.

Dislodged a Jeep from a snow drift in the La Sal Mountains one time. Next to my mountain bikes and rafts, it's the best investment I ever made.

The Mighty Roo!

Thu, 03/03/2011 - 00:27 | 1014036 Lothar the Rott...
Lothar the Rottweiler's picture

2002 Impreza Outback Sport.  148K.  No major issues aside from wear/tear.  If the engine isn't underwater, and you have good tires, you're getting through it.

Go Subaru and don't look back!

Wed, 03/02/2011 - 19:09 | 1013203 Big Corked Boots
Big Corked Boots's picture

Get me a six liter V8 pickup truck in time for $5.00 gasoline.

Outstanding. Saudis need welfare, too... Glad to help.

Wed, 03/02/2011 - 19:09 | 1013208 Village Idiot
Village Idiot's picture

I'm waiting for those "Chapter 9's" to start rolling in. 

http://en.wikipedia.org/wiki/Chapter_9,_Title_11,_United_States_Code 

Wed, 03/02/2011 - 19:14 | 1013222 oogs66
oogs66's picture

I love chapter 22 :) and since they are owned by the government why shouldn't they say one thing and do another? And don't give any crap about being owned by the people - where was my invite Yo the Detroit auto show?

Wed, 03/02/2011 - 19:17 | 1013230 johngaltfla
johngaltfla's picture

Uh, last I check, Duct tape is NOT adequate for fixing a torpedo hole in the hull of an aircraft carrier. Or is it 2008 again and I've just been drunk for 2 years?

Wed, 03/02/2011 - 19:16 | 1013231 Misean
Misean's picture

American-Leyland needs to follow the footsteps of its British cousin and build smaller, crappier cars like this:

http://www.google.com/imgres?imgurl=http://www.motorbase.com/pictures/co...

 

Wed, 03/02/2011 - 20:37 | 1013487 gmj
gmj's picture

Google gives me a malware warning on that site.

Wed, 03/02/2011 - 20:42 | 1013496 Misean
Misean's picture

That's not terribly surprising. The Morris Marina was a truly awful vehicle.

Thu, 03/03/2011 - 09:11 | 1014518 Zero Govt
Zero Govt's picture

yes but imagine flogging the Marina with 0% down payment and 0% interest and a contract that says we don't give a fuk who you are....

...I like the way the US car market is going, much like US healthcare and US housing before it... the Govt doesn't just give you dumb, it doubles up on dumb and then triples it... splendid !!!

Wed, 03/02/2011 - 19:18 | 1013234 deselby
deselby's picture

Subprime?  Buicks and Cadillacs are fine cars, as reliable as anything else if maintained.

 

Wed, 03/02/2011 - 20:03 | 1013400 Logans_Run
Logans_Run's picture

But they don't sell enough of either of them to make a viable business.

Wed, 03/02/2011 - 21:11 | 1013534 impending doom
impending doom's picture

Ha! Spoken like a person who has never owned a well-maintained cadillac.

Wed, 03/02/2011 - 21:24 | 1013564 gorillaonyourback
gorillaonyourback's picture

my 62 coupe de ville still runs fine.  she needs a little lovin all the time but she puts out

Wed, 03/02/2011 - 22:07 | 1013666 TemporalFlashback
TemporalFlashback's picture

Subprime is referencing subprime auto loans - not the car. Although, after thinking about it, yes, sub-prime cars as well.

Wed, 03/02/2011 - 23:17 | 1013866 A Nanny Moose
A Nanny Moose's picture

Maintained? They may drive like crap, but I am pretty sure those front driver Buick V-6's up to the early 90's can be lubricated and cooled using only air.

Wed, 03/02/2011 - 19:18 | 1013238 cossack55
cossack55's picture

I was leaning toward a pickup to hold all the groceries from my SNAP card, but, with the rise in food prices I think I'll opt for a Smart Car instead.

Wed, 03/02/2011 - 19:19 | 1013239 cougar_w
cougar_w's picture

It's interest-free cuz ... there ain't no interest in it at all.

I think I could be an eee-con-oh-mist. I rilly do.

Wed, 03/02/2011 - 20:19 | 1013452 Rusty Shorts
Rusty Shorts's picture

Bingo

Wed, 03/02/2011 - 19:18 | 1013241 jkruffin
jkruffin's picture

I made mention last week that a friend of mine just had a Cpt 7 bankruptcy discharged and 3 days latter his mailbox was full of financing arrangements for a new GM from companies spanning from DC to Florida.  So I guess if your name is Government Motors, and you need to find buyers for your product you get your sales lists from the bankruptcy courts to peddle.  What's more is the guaranteed loan offer. Sound familiar Benny? Timmy? Bammy?

The FED has mortgaged our future......this is the next housing bubble waiting to collapse. And it will.

Wed, 03/02/2011 - 19:18 | 1013244 b_thunder
b_thunder's picture

Ford - gimme a break!  Thay've had a good run, mainly b/c of the troubles the others were having and the resulting "positive" press. 

But lately they've had recalls every week now, just like  in the early- and mid-2000s.  Ford again stands for "fix and repair daily." 

 

Wed, 03/02/2011 - 19:26 | 1013266 MachoMan
MachoMan's picture

that would be F.A.R.D.

Wed, 03/02/2011 - 19:36 | 1013308 Big Corked Boots
Big Corked Boots's picture

First

On

Race 

Day

Thu, 03/03/2011 - 02:14 | 1014239 Village Idiot
Village Idiot's picture

"Ford...the heartbreak of today's Chevrolet."

Remember?

Wed, 03/02/2011 - 19:48 | 1013340 Don Birnam
Don Birnam's picture

"Fix Or Repair Daily"

"Ford Owners Repair Daily"

And my personal favorite, one which I have found myself on the wrong side of,
"Found On Road Dead"

Ford. Quality is Job 1.

Wed, 03/02/2011 - 19:59 | 1013391 somethingelse
somethingelse's picture

right...and their cars are "#2"

Thu, 03/03/2011 - 05:13 | 1014347 OldPhart
OldPhart's picture

My '48 F-3 still runs, don't know the mileage since the speedometer cable broke in the 60's and it never went fast enough to matter.

Wed, 03/02/2011 - 19:20 | 1013245 Hooter Shaker
Hooter Shaker's picture

There is no such thing as interest free financing on a new car.  You forfeit the rebate which is equilvalent to rolling the interest into the principal.  It's smoke and mirrors.  Nothing to see here...

Wed, 03/02/2011 - 19:22 | 1013256 cougar_w
cougar_w's picture

There is no such thing as interest free financing on a new car

What do you mean, no such thing? I've no interest in financial one of their cars and never will have any.

Wed, 03/02/2011 - 19:24 | 1013263 Id fight Gandhi
Id fight Gandhi's picture

Best sellers are still the light trucks getting sub 20mpg.

So they'll have to take steep loses as gas soars just like 2008. Oh and if you own a gas guzzler forget resale values, they're plunging.

Wed, 03/02/2011 - 19:28 | 1013277 MachoMan
MachoMan's picture

I might buy an equinox if they'll knock off more of a discount...  I would much rather buy japanese, but if they'll discount enough I'll buy american...  Hell, some of the jeep models you can get for ~$15k new already...  drive it for 5-7 years and throw it away...

Wed, 03/02/2011 - 19:27 | 1013278 jkruffin
jkruffin's picture

Don't you love the fuzzy math these car dealers use?  Their sales increased @ 50% in one month,  WOW.  They sold 6 vehicles to Bernanke instead of 4.  All in one month. That's amazing.

Look around your military bases and government buildings folks, see the brand new GM cars all the military officers and DoD employees are driving on your tax dollar. The main buyer has been the government for 2 straight years and counting.

Wed, 03/02/2011 - 19:31 | 1013289 poggi
poggi's picture

Why not?  Especially when the Fed is backing your play with its printing presses?

Wed, 03/02/2011 - 19:34 | 1013301 mynhair
mynhair's picture

Meanwhile.....

The new Connecticutt school will not be named after Byteme Biden.....

Wed, 03/02/2011 - 19:42 | 1013329 max2205
max2205's picture

The definition of insanity is......

GM is going to blow up again

Think of the numbers they would report if only mark to fantasy was in their grasp

Wed, 03/02/2011 - 21:09 | 1013339 Billy Shears
Billy Shears's picture

This is how it works: gov't bails out any, and I mean any business or anyone, and all Americans should boycott that particular person or entity, no exceptions. Sure, over the years, we as taxpayers have put 10 of billions into this black-hole and we'll never get it back. So what, we owe trillions anyway; a mere sack of shells. But, and this is the hook, we have the satisfaction of knowing now that companies are on notice: take a bailout and don't expect to sell any of your stuff to the taxpaying public, at least not to me. Both collectively and individually this is a powerful message to send to the market: bailout=pariah=market failure.

Wed, 03/02/2011 - 21:50 | 1013619 Clockwork Orange
Clockwork Orange's picture

+10,000,000,000

Wed, 03/02/2011 - 23:35 | 1013908 The Grip
The Grip's picture

Amen. Bought a new Chev every 3 for 15 years and switched to Toyo the moment Bush threw GM the rope.

Wed, 03/02/2011 - 19:45 | 1013341 Sheriff Douchen...
Sheriff Douchenik from AZ's picture

You folks all miss the fact I can get a lease on a Volt for $350/mth. $40,000 car for $350 a month! Doesn't that mean huge profits? Someone get me another hit of Fed soma.

Seriously the last North American cars I owned (over 10 years ago) were a Buick LeSabre and a  Transam which both fell apart within 6 years and they were well taken care of. You would think by all the awards and hype from the automotive journalists that they turned the corner but they might as well all work for the Fed.

 

 

 

Wed, 03/02/2011 - 19:48 | 1013342 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

The only thing worth buying out of the U.S. is the Fender (Standard Strat) guitar, and even though the dollar has fallen through the floor relative to other currencies they have taken the p*ss and jacked up the price of the guitars 10% in under a year to foreign buyers!

Might just buy a much cheaper Mexican Fender, it's probably made by a Mexican in the U.S. anyway.

You've seriously lost your way America, no going to back 'normal' now. While the going appeared good with house prices rising $100 a day, citizen's were all too willing to be complicit in their countries implosion and downfall and go along and enjoy the party even though all the warning signs were there. Time to pay up now unfortuantely.

To be honest, when i see U.S. reality tv shows where they show the average american 'middle class' in his home it makes we want to throw-up. Here's what i see: you have a family, over weight parents with a 2 to 3 kids, nice big house, two cars, big garden, huge groceries bags of food bought every week and a couple of nice vacations a year to boot... only the father seems to work and that's normally a menial average job which requires little to no skill or education...

... it makes me absolutely sick to think how many poor Chinese people (and people from other Far eastern countries) have to have such a poor standard of living for their toil just to subsidize the average american family.

Time for those scales to be re-balanced me thinks. Will the average Joe and his family be able to cope with the shift?

Wed, 03/02/2011 - 19:57 | 1013385 lynnybee
lynnybee's picture

..... only after i wrote & submitted my comment did i see that you also used the word , "sick" in your comment .    The entire thing is just disgusting & degrading to everyone involved.   The average life of a company is only 30 years ........... these guys should have been long gone, but, G.M. continues living ..... for now.

Wed, 03/02/2011 - 20:07 | 1013411 quasimodo
quasimodo's picture

Don't lump us all in the same fucking boat, those reality shows are about as far from the truth for many as you can get. One more thing they don't show are those huge CC bills on the desk hidden out of sight, and the mortage payment notice that says PAST DUE.

Will J6P be able to cope? For about 90%--hell no, there is no way. Yes, the scales are being rebalanced as we speak, don't fucking remind me. There are plenty of hard working folk here in the US that will suffer along with many that deserve it.

Wed, 03/02/2011 - 20:19 | 1013442 Milton Waddams
Milton Waddams's picture

"Those damn politicians let the corporations send all the good paying manufacturing jobs overseas to Mexico! Now where is my goddamn credit card, I'm going to Walmart and picking myself up a new iPad."

Wed, 03/02/2011 - 23:43 | 1013929 A Nanny Moose
A Nanny Moose's picture

This makes me think of Elvis. Early on, he was lean, and hungry. He was the King. Women wanted him, men wanted to be him..because women wanted him. He became Fat Jumpsuit Elvis. The draw was no longer Elvis, but who he once was, and the train wreck he had become.

We are now, Fat Jumpsuit Aloha from Hawaii Elvis. Strung out, and about to die on the crapper.

Wed, 03/02/2011 - 19:54 | 1013376 lynnybee
lynnybee's picture

Don't even get me started on G.M.    After I learned that they just took $57,000,000,000 from the American Taxpayer (i.e. American Citizen / Taxpayer ) & used that money to transition to a new manufacturing plant in BRAZIL ............ well, that's when I went balistic.    Never ever will I or any member of my family purchase a G.M. vehicle ............ EVER !     It's sick, just sick.

Wed, 03/02/2011 - 20:10 | 1013422 ghostfaceinvestah
ghostfaceinvestah's picture

There are a lot of people who have your mindset (myself included) - no way will they be able to pare back enough to implement a cost structure that matches their reduced sales volume.  They are doing well in China, that is the only thing saving their ass, for now - the better hope the China bubble doesn't burst too soon.

Thu, 03/03/2011 - 09:30 | 1014550 orangedrinkandchips
orangedrinkandchips's picture

add me to the list! GM....cant even say they blow...because THEY DONT. THEY KICK ASS. TALENTED MOTHER FUCKERS FOR SURE.....not in making, selling or anything with cars, but with POLITICS.

Bail my ass out.

Banks, now GM. Hells bells, does Japan bail out Toyota? When I was in college it was all about JIT...just in time. The Asians were eating their sushi AND our baloney samiches at the same time!

That was 20 years ago...Ford has learned a bit but GM?

WHY WOULD THEY LEARN??????????

I have kids and if I do their homework they will NEVER LEARN. Same shit!

I dated a Korean chic in college too and talked with her mom who is just kick ass. She told me straight up...in Korea...YOU WORK OR YOU STARVE. If you cant find a job then you give rich people a rusty trombone!

It fucks EVERYTHING up when you play favorites..NOT just in the US but in the world. Toyota, Nissan etc. can run a great car company BY THEMSELVES. WITHOUT HELP.

 

GM ...YOU LOSE. GIVE IT UP. fucking assholes.

Thu, 03/03/2011 - 09:33 | 1014552 orangedrinkandchips
orangedrinkandchips's picture

Let's be honest here. Gas prices are killing them and their "nutcracker" trucks....yeah. Nutcracker...I can play that in so many ways...bottom line...yes GM...call it a nutcracker (because it's a great truck, dont get me wrong) but with gas at 3.50 min./gallon, that is like telling these foreclosed people to go get another loan they cant afford!!

 

Wed, 03/02/2011 - 19:59 | 1013390 mynhair
mynhair's picture

Are the PTB in GM even able to read to Chapter 22?

Wed, 03/02/2011 - 20:08 | 1013418 ghostfaceinvestah
ghostfaceinvestah's picture

Guaranteed this company will be filing BK again within 5 years.

Wed, 03/02/2011 - 20:14 | 1013431 djsmps
djsmps's picture

I got a 2% interest car loan from Chrysler in 2005. Your credit had to be stellar to get it. Is GM letting people with less than stellar credit get the no-interest loans?

Wed, 03/02/2011 - 21:22 | 1013554 impending doom
impending doom's picture

It's not just GM. Honda has a very well thought out program giving 2% financing to... new college grads! I bet they have 700+ credit scores, right?

Wed, 03/02/2011 - 20:16 | 1013444 gwar5
gwar5's picture

I feel like going and getting and then just stiffing them.

I don't need credit for anything anymore and don't care.

They just don't make a car I want.

 

Wed, 03/02/2011 - 20:18 | 1013446 buzzsaw99
buzzsaw99's picture

Finance for 72 months, trade it in after 36 because it has so many problems. Rinse, repeat.

Wed, 03/02/2011 - 20:19 | 1013451 grid-b-gone
grid-b-gone's picture

Autos were the single exemption from new derivative regulations in FinReg. The auto dealer carve out set in motion the results exposed in this article.

These risky loans will now be bundled and bet against, legally, because of the FinReg carve out. As Buffett pointed out in his 2010 shareholder letter, derivatives are extremely attractive because fees (commonly in the area of 18%) are collected up front.

As with all the recent sub-prime "fixes", moral hazard is the unintended rider in the legislation. As mentioned, Ford will probably need to add risk to its business plan because GM will play the sub-prime derivative card.

Comment #1013241lends some anectdotal evidence that lower-creditworthy customers are being targeted, just as with the all-too-recent history of mortgage fraud.

Wed, 03/02/2011 - 20:33 | 1013474 Long-John-Silver
Long-John-Silver's picture

They passed a law forcing everyone to buy Health Insurance. How far away is the requirement to buy a Chevy Volt?

Wed, 03/02/2011 - 20:55 | 1013512 Sheriff Douchen...
Sheriff Douchenik from AZ's picture

Answer - not long. They're already geared up to force you to buy GE's cfl light bulb crap.

Government Electric Motors anyone?

Wed, 03/02/2011 - 20:57 | 1013518 Dr. Porkchop
Dr. Porkchop's picture

Forcing everyone to buy a Volt would be seen as highly socialist. Forcing everyone to buy a crew cab Silverado with leather and towing package... now that would be patriotic... as long as you set up a program to help the poorer segments finance the loan.

Wed, 03/02/2011 - 21:20 | 1013540 plocequ1
plocequ1's picture

If i am forced to buy a Volt or any car, I will force myself into the depths of despair, Then beg a Police officer to  put me in Jail , Fema camp or end my feeble existence.

Wed, 03/02/2011 - 21:24 | 1013563 impending doom
impending doom's picture

Why wait?

Wed, 03/02/2011 - 21:28 | 1013570 plocequ1
plocequ1's picture

Because the Ipad 2 is coming March 11

Wed, 03/02/2011 - 20:33 | 1013475 gkm
gkm's picture

You forget about the "bonus" for employees with which I'm sure they hope employees will buy a car so that the ponzi scheme can continue.

Wed, 03/02/2011 - 20:34 | 1013476 yabyum
yabyum's picture

Any deal on a olds 88? Jet black, red leather seats, huge frikken v8. It was all down hill from taht pont on!!

Wed, 03/02/2011 - 23:14 | 1013854 cowdiddly
cowdiddly's picture

Sorry it was all downhill after the original Roadmaster 

Wed, 03/02/2011 - 20:55 | 1013503 Dr. Porkchop
Dr. Porkchop's picture

This is ripe for a scam. Finance them, crate them up, ship them to some other country, pocket the money, skip out on the loans. Is this wrong? It's how American business is conducted these days.

That's doing God's work.

Come to think of it, I don't even think GM would care.. they'll just go back for another bailout if it became rampant. They'd get it too, because the oligarchs run the place.

It's the only product designed and built in the USA anymore. Not GM, but financial ponzinomics.

Wed, 03/02/2011 - 20:54 | 1013511 Long-John-Silver
Long-John-Silver's picture

No need to finance them. Just steal them and ship them to the Dominican Republic. Everyone except the insurance company wins.

Wed, 03/02/2011 - 21:03 | 1013524 Dr. Porkchop
Dr. Porkchop's picture

Don't give up so easily! Remember AIG? Even bankrupt insurance companies can succeed in the new ponzinomic economy... you just need imagination.. and a rainbow.

Wed, 03/02/2011 - 20:53 | 1013507 CrashisOptimistic
CrashisOptimistic's picture

Excuse me, but has the world gone insane.  Oil just hit $103!

 

NOTHING ELSE MATTERS.

 

Not GM.  Not Bernanke.  Not anything.

For a lousy 1 million barrels/day, we're sending in the marines and looking at triple digits.

Wake Up!  There is no slack in the system.  At all.  A lousy 1 million bpd has exposed the Saudi lie about capacity.

Wed, 03/02/2011 - 20:57 | 1013515 Long-John-Silver
Long-John-Silver's picture

Are you ready for the second dip? High oil prices will tip the economy into the ditch again.

Wed, 03/02/2011 - 21:00 | 1013522 Seasmoke
Seasmoke's picture

its going to make for a hot and tempers rising summer

Wed, 03/02/2011 - 22:41 | 1013764 aheady
aheady's picture

I think I missed the part where it came out of the ditch.

Wed, 03/02/2011 - 20:58 | 1013521 Seasmoke
Seasmoke's picture

how quick can a bankrupt company , go bankrupt

Wed, 03/02/2011 - 21:06 | 1013526 Dr. Porkchop
Dr. Porkchop's picture

Never! Remember the first rule of ponzinomics;

If you can dream it, you can do it!

Or was it; Fuck everybody and get the money?

Either way.

Wed, 03/02/2011 - 21:12 | 1013541 Seasmoke
Seasmoke's picture

buy a used car and screw both the Government and Government Motors

Wed, 03/02/2011 - 21:16 | 1013544 Dr. Porkchop
Dr. Porkchop's picture

I don't know how true it is, but I heard that Cash for Clunkers really screwed up the used car market, because the cars turned in had to be rendered useless so they would be scrapped.

Thu, 03/03/2011 - 02:50 | 1014285 StychoKiller
StychoKiller's picture

The Broken Windows fallacy writ large!!

Wed, 03/02/2011 - 21:23 | 1013557 plocequ1
plocequ1's picture

My next car is a VW Jetta

Wed, 03/02/2011 - 21:18 | 1013548 pragmatic hobo
pragmatic hobo's picture

""GM’s rhetoric has been saying one thing -- discipline, discipline, discipline -- and then their actions have been going completely in another direction.""

 

Is Obama running GM?

Wed, 03/02/2011 - 21:20 | 1013553 Atomizer
Atomizer's picture

Oh Obummer

As part of the American Recovery and Reinvestment Act of 2009, when you file your 2009 Federal taxes, you may be eligible for an income tax deduction on state and local sales taxes you already paid on the purchase of a new car or light truck during most of the calendar year 2009.* These deductions are based on the cost of your new vehicle, your income and filing status, and sales tax percentages. Note that these deductions are no longer available on vehicles purchased in calendar year 2010.

The following examples are for illustrative purposes only.
Click here for further guidelines or learn more about the tax rebate from the IRS.

http://www.gm.com/vehicles/currentoffers/federal-tax-deduction/

Looks like the Fuckers at Government Motors haven't learned their lessons. On top of cars, mortgages..

http://www.gm.com/vehicles/services/gmac.jsp

Ally Bank Egg Scam

 

Wed, 03/02/2011 - 21:23 | 1013559 Dr. Porkchop
Dr. Porkchop's picture

Plan B is for GM to convert to a bank holding company. Then the sky is the limit!

Wed, 03/02/2011 - 22:14 | 1013694 Seasmoke
Seasmoke's picture

didnt they already pull that off with ally bank !

Wed, 03/02/2011 - 21:57 | 1013639 sandvikpanther
sandvikpanther's picture

So,

GM is securitizing these loans and dumping them @ Ally and the money to buy the loan bonds is coming from the bernank @ 0.25% interest?  Ben is blowing another bubble inside GM?

Wed, 03/02/2011 - 22:02 | 1013658 buzzsaw99
buzzsaw99's picture

they loan it out at zero and make up the difference on volume.

Wed, 03/02/2011 - 22:10 | 1013678 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

A word comes to mind:

Ponzeconomy™ (used with permission of Money McBags)

Wed, 03/02/2011 - 22:16 | 1013695 Greenhead
Greenhead's picture

What a deal, taxpayers bail out GM, then, GM sells to the government agencies and military and ...taxpayers pay with taxes and treasuries financed by the FED, and bonuses get paid, union pensions get financed, votes happen for the right folks.  Non-government sales get financed, packaged and sold and backstopped by the government...er, taxpayers and more money goes to pay salaries at GM, pensions, benefits, and who says socialism doesn't work?

Take the government and taxpayers out of the equation and does the deal fly and make sense?  Also, if you were a Ford employee or stockholder and you are in the middle of this insane battle, how do you feel?  If you are Union, how do you vote after witnessing this assault on your employer?

It is indeed a privilege to live in these interesting times!

Wed, 03/02/2011 - 22:17 | 1013701 glenlloyd
glenlloyd's picture

Next thing you know they'll want to take the 401(k)'s away to financially support Goverment Motors....you know, gotta support another GSE now.

 

Wed, 03/02/2011 - 22:20 | 1013713 Greenhead
Greenhead's picture

All they need to do is make the purchase of a new GM model tax deductible, no, give a tax credit for the full window sticker price of the model and sales would take off!  Forget those lousy rebates.

Wed, 03/02/2011 - 22:43 | 1013769 Xando
Xando's picture

GM's only got $6 billion in debt on its books now, thanks to the bankruptcy court $40 billion got cancelled. Two crazy things are happening. One, CDS's on GM are hot, hot, hot, to the point that GM's not holding enough debt to service the demand. Things have started to go synthetic to bridge the gap. Yes, the big boys are keen on trading CDS's on debt (which normally isn't *there*) which doubly isn't *there*. Two, superior, better managed companies, like Ford, who laudably got through the crisis on their own, are carrying much heavier debt loads. So much so that they simply cannot afford to compete with the incentives GM's now eager to throw down.

The whole situation is driven, once again, by shenanigans on the Street and by distortions injected by DC. And the losers are the ones who played well and by the rules.

Wed, 03/02/2011 - 22:53 | 1013797 Seasmoke
Seasmoke's picture

welcome to 21st century america, reward bad behavior and punish good behavior

Wed, 03/02/2011 - 22:54 | 1013799 docj
docj's picture

Zero percent?  Screw that - at this point I wouldn't buy a GM car if the interest rate was -2%.

Meanwhile, my wife and I each own a Prius - my wife's is an '05 (115K-miles) and mine is an '06 (132K-miles).  Own them both free and clear.  Total repair costs after a combined nearly 250K-miles of driving?  $275 to repair a burned-out headlight at the dealer.  That's it.  They both drive great - mine in particular still drives pretty much like a new car.

Average MPG?  49 for me (mostly highway), 43 for The Mrs. (lots of stop/go and parked waiting for kids).

Recalls, schmecalls - when one of those babies eventually dies I'm getting a new (or gently used) one just like it.

Wed, 03/02/2011 - 23:06 | 1013835 savagegoose
Wed, 03/02/2011 - 23:13 | 1013856 Itsalie
Itsalie's picture

Wow, zero-interest car loans for 5 years? With uber-inflation around the corner, these loans would have NPVs serously below their listed price. Good deal for car buyers, bad for GM shareholders (but who cares anyway, HFT algos will set whatever price col ben dictates for GM shares). Truly mickey mouse country you have there!

 

Wed, 03/02/2011 - 23:46 | 1013935 Coldfire
Coldfire's picture

General Motors, Mark of Excrescence.

Thu, 03/03/2011 - 02:04 | 1014218 Josh Randall
Josh Randall's picture

DAVENPORT! Get Mr. Griswald's car back out here, get it out here right now..

Thu, 03/03/2011 - 02:08 | 1014223 PulauHantu29
PulauHantu29's picture

Why not just give the cars away for free and let the Middle Class taxpayers continue to pay for them?

Thu, 03/03/2011 - 03:22 | 1014313 misterc
misterc's picture

It's always fun to drive my girlfriend's 2006 Opel Corsa (European GM car).

I've never seen a car having so many repairs. We have to get things fixed about twice a year.

-headlight replacement -> a technician has to dig through the hood to get to the light bulb

-the radio/navigation unit regularly stops to operate in wintertime

-top speed was suddenly limited to very slow walkin speed, about 1 mph (it was really big fun to make it to the shop with that speed)

 

There's a reason why Mercedes & BMW have higher price tags.

My BMW never, never disappointed me like that GM car.

Thu, 03/03/2011 - 04:58 | 1014340 lunaticfringe
lunaticfringe's picture

Can I haz free car now?

42 grand for a battery operated Volt. Fucking POS. Hoping all patriots buy any brand of car except GM.

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