GM September Sales Miss; Channel Stuffing Resumes
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.