GM Channel Stuffing WTF!?

Tyler Durden's picture




 

Those who have been reading our 2+ year series tracking the ridiculous "bottom-left to top-right" trend in GM dealer inventory channel stuffing, know all there is to know about the modern day equivalent of AOL (in which the purchases of modern equivalents of "dial up connections" are funded by loans from the US government itself), in both (non government backstopped) business continuity terms as well as in channel stuffing notoriety. Which is why we will present the November update of total dealer "inventory" (which rose to a record for the fresh-start company 788,194, or a record 99K increase in two months) a without commentary, except to say: WTF!?

Source: GM

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Mon, 12/03/2012 - 12:14 | 3029778 asteroids
asteroids's picture

Where is "mark to market"  for all this inventory? Never mind, I forgot it's "mark to fantasy". Just like Greek debt.

Mon, 12/03/2012 - 12:21 | 3029824 hedgeless_horseman
hedgeless_horseman's picture

 

 

ADVERTISEMENT

__________________________________

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
$67,185

 

Easy credit available through GMAC Ally Bank!

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

Mon, 12/03/2012 - 12:28 | 3029853 Billy Shears
Billy Shears's picture

HA, HA, HA. 

Mon, 12/03/2012 - 12:54 | 3029924 camaro68ss
camaro68ss's picture

" got my obama phone, my bama car, keep bama presedent for 3rd term, you know"

 

Mon, 12/03/2012 - 13:02 | 3029957 Cthonic
Cthonic's picture

 " got my obama phone, my bama car, keep bama presedent for 3rd term, you know" ... to get yer bama house.

Mon, 12/03/2012 - 13:14 | 3029998 NotApplicable
NotApplicable's picture

Wow, they almost ran out back in July! Good thing those UAW folks are productive.

Mon, 12/03/2012 - 13:24 | 3030029 killallthefiat
killallthefiat's picture

Only $67,000?  Got my wife an 2004 Navigator on ebay (Texas Direct) 3 years ago for $15,000 w/53,000 miles.  Runs like a top! Just like ordering a pizza too.

Mon, 12/03/2012 - 13:52 | 3030104 j0nx
j0nx's picture

You paid too much.

Mon, 12/03/2012 - 13:57 | 3030121 nope-1004
nope-1004's picture

Ponzi, totally.

From an earlier ZH thread:

  • Subprime borrowers received 56.46 percent of loans on used cars in the quarter, up from 52.70 percent a year earlier.
  • The average loan-to-value on new cars was 109.55%
  • The average used car loan-to-value ratio rose to 126.62%
  • 77% of Subprime Auto Loans are for a period greater than five years
Mon, 12/03/2012 - 14:14 | 3030186 redpill
redpill's picture

Long new car storage lots

Mon, 12/03/2012 - 14:39 | 3030257 Overflow-admin
Overflow-admin's picture

Long car crushers and short spare parts.

 

Edit: perfect storage lots bubble burst scenario.

Mon, 12/03/2012 - 18:53 | 3031043 TBT or not TBT
TBT or not TBT's picture

China builds empty cities and malls.  We build empty cars.    The easter island people built those stern looking statues.     Pacific islanders built those cargo cult airports and ports.   Fascinating cultural particularities.

Mon, 12/03/2012 - 20:31 | 3031206 StychoKiller
StychoKiller's picture

Quiet!  I'm tryin' to tune my painted-rock™ radio to the local Salsa station...

Mon, 12/03/2012 - 13:53 | 3030109 ParkAveFlasher
ParkAveFlasher's picture

Really?  Cuz my pizza guy drives a brand new Escalade.  Nicely equipped, of course. 

Mon, 12/03/2012 - 13:53 | 3030111 Breezy47
Breezy47's picture

And $15k is what that $67K Denali will be worth in 3 years...such a bargain!

Mon, 12/03/2012 - 14:11 | 3030172 debtor of last ...
debtor of last resort's picture

Thought you wrote: got my wife and 2004 Navigator on ebay...

Mon, 12/03/2012 - 16:18 | 3030570 smiler03
smiler03's picture

Hopefully his wife does more than 10miles to the gallon.

Mon, 12/03/2012 - 13:12 | 3029993 whotookmyalias
whotookmyalias's picture

Constitution being treated as a cute old piece of paper rather than rule of the land, so why not 3rd term? Why not President for life?  He'll take care of us all.

Mon, 12/03/2012 - 13:20 | 3030019 camaro68ss
camaro68ss's picture

bama give me gubment kar, from GM. Ford sucks, corprate fat cats, for profit, you know.

 

if it wasnt funny id be crying. Constitution only works when its inforced. This guy has not and will not inforce a document he dosnt belive in. Obama will get a 3rd term. the sheeple will chear in the streets

Wed, 12/05/2012 - 01:34 | 3034826 fade2black
fade2black's picture
10 Reasons GM's Profit Is About To Explode

http://www.forbes.com/sites/joannmuller/2012/12/04/10-reasons-gms-profit...

Irony...

Mon, 12/03/2012 - 12:31 | 3029859 FLUSA.com
FLUSA.com's picture

Well fucking done....

Mon, 12/03/2012 - 13:01 | 3029925 TruthInSunshine
TruthInSunshine's picture

For those here who understand how dealership "floor planning" works, and how manufacturer incentives and pressure influences dealership inventory levels (e.g. volume incentives, "holdback" cash, etc.), if you visit an area GM dealership, you can literally see the vehicles being stacked high and deep.

Now that it's December, the vehicles dealers have been pressured to take on in even larger volume in November & December is evident and the blow-out-the-metal-no-matter-what sales will be the tactic used to try and get rid of these vehicles.

This is especially true of Cadillac, GMC & Buick Dealers, where some of the least popular vehicles are piling high (and you can see the literal lease specials dealers are trying to move these vehicles to with anyone who has a pulse- forget the "nationally advertised" specials; at the local level we're talking genuine $0 down, sign & drive vehicles that have MSRPs of 30k for $199/month and Cadillacs that have 44k MSRPs for $0 down sign & drive for $339/month).

It's not just GM, either. Many dealers selling many other makes are stacking 'em deep and movin' 'em cheap. The heavily subsidized $0 down/sign & drive lease for any warm body having a FICO score of 500+ is becoming a larger & larger % of new vehicle "sales" in broke dick U.S. and manufacturers need to keep their lines moving since they've already cut down headcount so much that not building vehicles that aren't selling well without massive incentives would require them to idle entire plants.

 

Mon, 12/03/2012 - 13:06 | 3029971 NotApplicable
NotApplicable's picture

A local bowling alley is now so full of cars from the dealer across the street, I don't think there's room left for any bowlers. Though they might have finally given up on that enterprise.

Mon, 12/03/2012 - 13:15 | 3029996 whotookmyalias
whotookmyalias's picture

My gubbmint doesn't like bowling, says I might hurt myself with the ball. Down with bowling, long live the money/car printers.

Mon, 12/03/2012 - 13:16 | 3030005 aint no fortuna...
aint no fortunate son's picture

that wouldn't be Amy Joy's in West Roxbury would it, lol?

Mon, 12/03/2012 - 13:15 | 3030001 Ghordius
Ghordius's picture

+1, TIS

 

you don't happen to know how those stocks are financed? and if they are financed as "new, to be sold" or as "sold, to be collected by the customer"? I presume this is data that is very hard to obtain and probably you can see from the question that I'm not an expert at all

@TIS: btw, it's unbelievable, there is simply no comment of yours to which I disagree. evah. you are the best ;-)

Mon, 12/03/2012 - 14:21 | 3030031 TruthInSunshine
TruthInSunshine's picture

I appreciate the high praise, but I think that it's more that ZH attracts realists who have finally spotted the irreconcilable differences between what the headlines, soundclips, statements & statistics produced by the Main Stream Media (including the sell-sider carnival barkers on cnBSc and Bloomturd), politicians and governmental "statisticians" claim is reality and what is actual reality.

At the very least, many here have been bothered by the cognitive dissonance enough to explore the red pill/rabbit hole. Just one very recent example:

Record, Blowout Black Friday (and Grey Thursday) Sales; Retailers In Heaven!!! Manna Raining Down!!!!  Ooooops, maybe not... 

 


 

Yeeeeahhhh, bitchez

By the way, many think that this can go on indefinitely, and they may be correct. I, however, honestly believe I'm seeing serious, signficant cracks in the foundation and wall of the massive concrete dam that I look both down & up above at, and maybe it's not the best idea to keep standing here.

Mon, 12/03/2012 - 13:33 | 3030044 Zero Debt
Zero Debt's picture

Finance has never been the issue, in a marxist central planned economy we print as much credit as is needed so that the workers can get good wages and vote for the party.

Mon, 12/03/2012 - 13:49 | 3030091 LawsofPhysics
LawsofPhysics's picture

"good wages"?!?!?  LMFAO!!!!!  What's the wage of the idiot leadership relative to those that actually do the work again fucknut? Better take another look at both the private and public sector, I see a lot of incompetent "leadership" that is grossly overpaid everywhere.

How about letting bad businesses and poorly run comapnies fucking fail for a change?  novel concept eh?  Let the leadership of those bankrupt companies pay back the creditors with their own wealth, not the taxpayer's.

Stupid fucking sheep.

Mon, 12/03/2012 - 14:36 | 3030245 Panafrican Funk...
Panafrican Funktron Robot's picture

Well said, I don't consider any business to be in the private sector if they're government contractors, or receive government subsidies.  By this expanded (and accurate) definition, we have a pretty fucking tiny private sector.

Mon, 12/03/2012 - 13:58 | 3030126 DavidC
DavidC's picture

TruthInSunshine,
Nearly time for another Cash for Clunkers to keep the new market going?

DavidC

Mon, 12/03/2012 - 14:17 | 3030188 TruthInSunshine
TruthInSunshine's picture

It wouldn't surprise me. I can honestly say that for the first time in my life I have difficulty thinking of anything that would surprise me in an Amerika By, Of & For The Bankster Jackals & The Politicians/Legislators/Regulators & Other Government Employees/Unions That They Prop Up.

"In KronyKomradeKapitalismAmerika, Banksters Own Government, Then Government Own You."

 

*This message brought to you by Warren "Let's Fuck The Taxpayers Really Good amIright Charlie Munger" Buffett

Mon, 12/03/2012 - 15:33 | 3030443 SeattleBruce
SeattleBruce's picture

How can you be so against "free enterprise" Truth?  ;)

Mon, 12/03/2012 - 15:31 | 3030439 SeattleBruce
SeattleBruce's picture

"manufacturers need to keep their lines moving since they've already cut down headcount so much that not building vehicles that aren't selling well without massive incentives would require them to idle entire plants."

But the democrats said at their convention that they'd saved a million good American jobs!  Oops, I guess the problems run way deeper than the latest political rhetoric, if anyone cares to slog through the BS...so Ds, Rs, how many of the thieves in the Wall Street banks have you put in jail yet?  That's what I thought...

Mon, 12/03/2012 - 16:13 | 3030552 singlemalt
singlemalt's picture

This.  Long Ally.   Who do you think finances 98% of that floor plan?

Mon, 12/03/2012 - 13:54 | 3030113 fightthepower
fightthepower's picture

Silvershield should comment on this....

Mon, 12/03/2012 - 12:39 | 3029886 Ayn NY
Ayn NY's picture

I am being stalked by my two local Chevy dealers because I looked at a car six months ago. We ended up buying a Nissan, but they won't stop calling me.

Mon, 12/03/2012 - 12:44 | 3029903 Dr. Richard Head
Dr. Richard Head's picture

I have noticed a small rounded clear bubble that is located in the center of dashboard of every new GM car.  It looks like a mini camera.  Anyone have insight on this?  I will try and post a picture.

Mon, 12/03/2012 - 12:49 | 3029918 Ayn NY
Ayn NY's picture

I think it has to do with on star. I had a gm suv, before they were owned by Obama , and it had one.

Mon, 12/03/2012 - 15:39 | 3030462 SeattleBruce
SeattleBruce's picture

"I had a gm suv, before they were owned by Obama"

LOL - Gubmint Motors...where 'saving' and creating jobs is "Job 1!" (OK, I'm mixing my US automakers... http://youtu.be/xZISPbKgbvw ("Qualify is Job 1!))

Mon, 12/03/2012 - 13:01 | 3029956 alangreedspank
alangreedspank's picture

It's for detecting whether you are driving in daylight or night so the "AUTO" settings for your beams work.

Mon, 12/03/2012 - 14:16 | 3030193 Dr. Richard Head
Dr. Richard Head's picture

Ahhhhhhh......paranoid fuck that I am.

Mon, 12/03/2012 - 20:46 | 3031232 StychoKiller
StychoKiller's picture

How's it hangin?  :>D

Mon, 12/03/2012 - 13:08 | 3029974 TheAntiBen
TheAntiBen's picture

First time in a car with auto headlights, eh?  Go check out any expensive german car, and you might find this same evil "camera" (grin.)

Mon, 12/03/2012 - 13:13 | 3029994 seek
seek's picture

Facing up or towards the driver? The one that faces up is the light sensor for the auto headlights.

Mon, 12/03/2012 - 15:53 | 3030495 Catflappo
Catflappo's picture

If there's any sort of bubble it was probably installed by the Fed

Mon, 12/03/2012 - 12:43 | 3029897 Flounder
Flounder's picture

Hey my neighbor Mr. Creosote has one of those.

http://www.youtube.com/watch?v=aczPDGC3f8U

 

Mon, 12/03/2012 - 13:42 | 3030072 Rathmullan
Rathmullan's picture

You're forgetting that the "shareholder bailout" was, and could only be, a one shot deal. However, the bailout of the UAW can and will go on ad infinitum.

I'm probably going to hold my nose and purchase a C6 corvette (The C7 will be introduced in January), but, just anecdotally, I'm seeing discounts on new C6s as steep as 20%. 

Mon, 12/03/2012 - 15:30 | 3030434 TonyCoitus
TonyCoitus's picture

Go to Autotrader.com

There are a shit load of "used" 2012 GM Yukon Denali AWD for sale.

Most of them 20% less than the "new" 2013

I'm waitning for the 100 year interest free loan. 

Mon, 12/03/2012 - 12:14 | 3029780 Popo
Popo's picture

Remember, when China does this we laugh at the idiocy of "Communism".  When we do it, it's "helping industry".

Do NOT follow this link or you will be banned from the site!