GM September Sales Miss; Channel Stuffing Resumes

Tyler Durden's picture

GM's stock is not enjoying news that its September sales rose 1.5% from last year, on expectations of a 2.8% increase. And while this is surprising considering the government is now in the business of funding not only the student loan bubble but Government Motors' NINJA purchasers (someone has to make those labor union votes happy) making the cost of new vehicles essentially zero when netting out the debt, what is not surprising is that GM management has once again resorted to the age old gimmick which never fails to provide an artificial boost to the true condition of GM car sales, i.e., Channel Stuffing. Because after moderating in the past few months after peaking in March, dealer inventory has once again resumed rising, and is now higher for the third month in a row, increasing to 689,334 units in September. Expect this number to continue ramping into year end as less and less GM cars are sold as we enter the dead winter season.

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IndicaTive's picture

Next week I go to the bank and pay off the last GM car I will ever own.

hedgeless_horseman's picture










There has never been a better time
to buy or lease a new GM!

Hurry now to your nearest GM dealer
before inventories increase even more!

2013 GM Yukon Denali AWD
403 HP
13 CTY / 18 HWY

Nicely equipped for only


Easy credit available through Ally Bank!

On*Star tracking and cabin recording included free for 6 months,
then you pay to be tracked and recorded.

azzhatter's picture

that's almost affordable if you get a 12 year loan at 0% and GM buys the gas for the first 3 years.

GeezerGeek's picture

It looks almost big enough to live in. Perhaps if one put it up on blocks one could then get a 30-yr ARM.

ParkAveFlasher's picture

A 30-yr ARM comes with the "Sport & Sun Package".  Ask your dealer about financing the financing!

bobola's picture

HH, great post.  thanks.

Any idea how well that Denali is selling..??

Would think GM makes more profit as the mpg goes down, and the hp goes up.



hannah's picture

i have bought several houses that cost less than this and lived in them for years......!

Carl Spackler's picture

...or you kids could end up like me, LIVING IN A YUKON DENALI down by the river !

epwpixieq-1's picture

Priced about 9K above, 1Kg Au, and has a cost of gas, taxes, insurance associated with it, and at the moment you buy it the price drops by 50%. But hey, for that you get to drive about 200 pounds of flesh and 4000-5000 pounds of steel and plastic with 403HP, wherever you want. Thanks, I will pass. I will get 1Kg Au, and will have money left for Ag.

MachoMan's picture

I've never owned one and don't really want to own one, but I would consider it with a sufficient enough discount...  I say that...  I don't own a particular gm automobile, but I've certainly paid for its creation through tax dollars...  We'll be forced to buy them one way or another...

At any rate, some local chevy places are having $6-7k off msrp atm.  I saw dodge rams locally were advertising $10k off...  they're getting warmer.

hedgeless_horseman's picture



Not me, Macho.  I just did Ca$h for Klünkerz. 

I bought a beautiful 30 year old Mercedes diesel (4cyl) for my kid for less than $3,000 cash.  Built like a tank, excellent fuel economy, reliable, runs on biodiesel, and slow.  Perfect.

Midas's picture

Are you good with mercedes HVAC?

catacl1sm's picture

I was looking Ram 1500's and they were $10k off of MSRP. Dodge dealership email me and offered to sell my choice of Dodge Journey for $1000 under invoice. LOL.


I bought a VW Jetta TDI clean diesel.

Almost Solvent's picture

LOVE my TDI sportwagon!

Next vehicle will be a TDI as well.


Jlmadyson's picture

Not even subprime can help these crazy stuffed channels eh.

Good times dead ahead.

GeezerGeek's picture

Or, maybe: ahead, good times dead.

GetZeeGold's picture



Welcome to the fall channel stuffing festival!

GeezerGeek's picture

The company's owner, some guy named Obama, figured that increased 'sales' would help him keep his job. That's all that matters, right?

fonzannoon's picture

How long can you channel stuff before the channels are overstuffed? Can all this bullshit go on indefinitely?

ziggy59's picture

You can stuff until Benny takes the T bills awayyyyy

LongSoupLine's picture

long: empty plots of land and parking lot paving companies.

ParkAveFlasher's picture

You could likely park more than a few in those McMansions nowadays.  Hey, how wide to hallways have to be?  And I love how McMansion architects and builders have taken "open concept" and made it "jagged monkey space".

LiesAreTheOnlyTruth's picture

Most of the sales are probably used cars anyway, who buys new off the showroom floor these days ... depreciation/inflation will KILL you!!

ziggy59's picture

But according to Uncle Ben and his Converted BS, there is no inflation to speak of...

The Yogi Berra Ecomony...
Theres no inflation, just everything costs more

MachoMan's picture

A lot of people buy new...  financing is cheaper...  further, the cash discount available ends up rivaling the price of used cars because of the tighter used market...  I think that trend is starting to get more back to normal after cash for clunkers, but I could actually drive off the lot with a new car for within $1k of a low mileage used model from the year before.  Basically anything sub 40k miles was within $2k of a new car...  all things considered, it was a no brainer.

catacl1sm's picture

Yup. Just went through that rigmaroll this past weekend.

hannah's picture

macho - financing is only cheaper for those that qualify. most dont. there was a chart in the wsj i think that showed the interest rates for most purchases and it is like 5% for good credit and 15% for bad. most people are paying interest....that is if they are making payments.

MachoMan's picture

Of course, there are also the "no interest for X months" offers...

ejmoosa's picture

People getting free money don't give a damn about depreciation.



Sudden Debt's picture

Look at it like this:

When the system explodes and implodes, it will be a good thing to have the ability to produce stuff.


NewWorldOrange's picture

GM channel-stuffing pre-election? After all the Obama largesse they've benefited from? Whoda' thunk?

ziggy59's picture

Must run in the "family"

Ford (F) small car sales reach a decade high, with the Escape model having the best-ever sales

toady's picture

The MSM spin is mind boggling. I just saw a report on how well Chrysler is doing..

It must be GM's turn in the star chamber this quarter ...

prains's picture

Just HOW BIG is this fucking channel? They must be running out of parking lots to store this crap, No?

Hippocratic Oaf's picture

This will continue until December, when it doesn't fucking matter to obama what the fuck happens. He'll either be gone or re-elected. If Mittens takes the seat, he'll let GM go tits-up! When you cross the bridge from NYC to the Jerz, all you see is GM autos. They will fuckin stack them on top of each other to supress the union scam and say they have been sold. 

The bomb is about to blow!

azzhatter's picture

I can remember driving into Detroit Metro airport when all the surface parking lots were filled with shiny new dodge ram trucks. There is a lot of parking lots available

Apocalicious's picture

Well, think about it. That chart shows an increase of roughly 300,000 units of inventory. You have about 17,000 to 18,000 dealerships in the US. GM's recent US market share (by sales) is about 17% to 18%. GM had 6,000 dealerships before the bankruptcy, and Obama wanted them to pare it down to 3,600 coming out, but has eased back due to the job losses this process created. Some estimate it at 5,000 dealers now. (approx 27% of the dealerships, seems reasonable). 300,000 units divided by 5K dealerships is 60 cars more per lot over the time of this chart. I don't even remember the last time I went to a GM dealership, so I don't have a clue how easy it would be to fit another 60 units but my guess would be harder than the last 60.

caimen garou's picture

bloomberg gov news that chryslerhad record sales,they must be selling to the current administration!

BeetleBailey's picture

a shame that Peyton Manning shills for this piece of shit company....

Hippocratic Oaf's picture

So did Tiger.....then he went to shit!

azzhatter's picture

Sure glad I loaded up on Facebook stock. That should get me thru the rough spot

replaceme's picture

I've been taking pictures around our city, trucks parked in vacant lots near dealerships, parked in the woods out of sight... It is creepy to see this happen, watch the news talk about how well these car companies are doing.  I never see anyone in the lots, just lots of balloons and big trucks, slowly getting older and less valuable. 


replaceme's picture

The trucks, not the ballons. I'm long balloons.

virgilcaine's picture

Drove by the local GM dealership recently a large East Coast dealer,  place was under construction and cars and vans piled up everywhere. Looked like a mess. Nor any customers that I could see.

virgilcaine's picture

Saw a string baloons flying over head at an empty Kmart/Shop rite parking lot.. apparently if the customer won't go to the dealer the dealer will go to them. Circus Tent atmosphere, Cars 4 sale. What's next door to door car sales? hmmm

pemdas's picture

My grandfather was a door to door car salesman, 1930's.

hannah's picture

when i was new car shopping a few months back i did a little test to try and find the 'oldest new' car for sale at the dealerships...i found a lot of 2010 model american cars. couldnt find any jap cars that old but did find some 2011 models but they were the top end expensive units. funny but i didnt think that the fuku mess really hurt supply but it was damn near impossible to find a jap built car. they really did shut down production for awhile.....

earnulf's picture

I still have a problem paying more for a car than I paid for my home (45K).    At least the home has hot and cold running water, a bathroom with shower and tub and 3 bedrooms!    It may not go anywhere, but it's a heck of a lot cheaper on gas.

Had to replace my F150 (98) and bought an 05 for under 10K with 125K miles.   New ones were over 30K and closer to 40.    Can't see paying that kind of fiat to watch it depreciate as I sign the paperwork by 10-15%