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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".

Mon, 12/03/2012 - 12:21 | 3029822 Everybodys All ...
Everybodys All American's picture

Obama is paying back Richard Trumpka and his union supporters.

Mon, 12/03/2012 - 12:31 | 3029858 Manthong
Manthong's picture

Well, maybe they are a bit irrationally exuberant about the prospects for car sales, but it’s just a good thing Obama isn’t stuffing the government with federal employees.

Mon, 12/03/2012 - 13:08 | 3029977 Cortez
Cortez's picture

The federal government is being stuffed with "contract employees".  They don't count as government workers for statistical purposes plus less pay and benefits than regular employees.  Akin to calling a shit a turd and claiming it ain't a shit.

Mon, 12/03/2012 - 13:18 | 3030012 insanelysane
insanelysane's picture

and will pay bonuses this year based on the huge 'sales'.

Mon, 12/03/2012 - 12:22 | 3029827 i_fly_me
i_fly_me's picture

When we do it, it is also the idiocy of Communism.  We use different words and have 4 year plans rather than 5.

Mon, 12/03/2012 - 12:24 | 3029839 LawsofPhysics
LawsofPhysics's picture

Wrong.  When we do it it is "the idiocy of fascism".

Mon, 12/03/2012 - 12:29 | 3029855 Hippocratic Oaf
Hippocratic Oaf's picture

C'mon Tyler, you know as well as I that they (GM) are piling on for that huge holiday rush!

<fukin sarc>

Mon, 12/03/2012 - 12:39 | 3029887 darteaus
darteaus's picture

Everytime this happens, somebody's mother gets a deposit in their Swiss account.

Mon, 12/03/2012 - 13:15 | 3030000 MsCreant
MsCreant's picture

I can think of some mothers who should have never taken certain deposits. And others who need to stop, now.

Edit: This, on a post about channel stuffing.

Mon, 12/03/2012 - 12:15 | 3029781 sdmjake
sdmjake's picture

"If you build it..."

Field of Dreams indeed

Mon, 12/03/2012 - 13:48 | 3030088 SilverDOG
SilverDOG's picture

sdmjake,

"...they will come" 

They most certainly will; with their bon-er-usses.


Mon, 12/03/2012 - 12:15 | 3029782 pain_and_soros
pain_and_soros's picture

GM: Driving America...

into the ground...

Mon, 12/03/2012 - 12:30 | 3029857 Incubus
Incubus's picture

Chevy runs deep.

Mon, 12/03/2012 - 12:51 | 3029922 Bastiat
Bastiat's picture

Inventory runs deep.

Mon, 12/03/2012 - 13:16 | 3030008 MsCreant
MsCreant's picture

GM: Driving America...

Off a cliff...

Mon, 12/03/2012 - 12:15 | 3029784 Flounder
Flounder's picture

Define fresh start.

Same shit new pipe.

Mon, 12/03/2012 - 12:16 | 3029789 spastic_colon
spastic_colon's picture

yeah but do they have a car that can read my fucking brain waves?!  (see mercedes)

Mon, 12/03/2012 - 12:20 | 3029812 Coldsun
Coldsun's picture

No but they certainly have a lot models that fuck us (as taxpayers).

Mon, 12/03/2012 - 12:35 | 3029875 spastic_colon
spastic_colon's picture

+1

Mon, 12/03/2012 - 12:17 | 3029793 IEVI
IEVI's picture

Yeah Obamacars..you get a car and you get a car and you get a car..everybody gets a car!

Mon, 12/03/2012 - 12:38 | 3029881 Tirpitz
Tirpitz's picture

And with the car comes a loan and with the loan comes debt and with debt comes control.

Mon, 12/03/2012 - 12:42 | 3029894 Death and Gravity
Death and Gravity's picture

Nail impacted on head.

Mon, 12/03/2012 - 12:54 | 3029936 BraveSirRobin
BraveSirRobin's picture

Not with a free Obama car! People need cars for emergencies, go to a job or a job interview, and simply stay connected with friends and family.

America would be a less downright mean place if we had automotive justice and equality.

Mon, 12/03/2012 - 12:41 | 3029892 Death and Gravity
Death and Gravity's picture

IN SOVIET AMERICA, CAR GETS *YOU*.

Mon, 12/03/2012 - 12:53 | 3029932 A Nanny Moose
A Nanny Moose's picture

Does it come with O'bamaphone?

Mon, 12/03/2012 - 12:17 | 3029794 Seasmoke
Seasmoke's picture

they should do a big giveaway for the 1 millionth GM car stuffed on a lot ...

Mon, 12/03/2012 - 13:02 | 3029961 ZackAttack3
ZackAttack3's picture

We should have a ZeroHedge party for this!!!!

Mon, 12/03/2012 - 12:17 | 3029795 fireangelmaverick
fireangelmaverick's picture

Tyler,

How does this comapre to the long term average? Do we have those stats going back many years?

Thanks,

Mon, 12/03/2012 - 12:25 | 3029838 El Viejo
El Viejo's picture

They got fewer dealers now, so inventories must go up, right??

Mon, 12/03/2012 - 12:51 | 3029923 Simon
Simon's picture

+1

Without the numbers before the subprimes crisis this data has not a lot of value.

Mon, 12/03/2012 - 12:57 | 3029946 jayman21
jayman21's picture

http://online.wsj.com/mdc/public/page/2_3022-autosales.html

 

I am not Tyler, but had the same reaction.  The link above show how stupid the inventory really is.  Tyler put it exactly...WTF?

Mon, 12/03/2012 - 13:45 | 3030079 imapopulistnow
imapopulistnow's picture

Who bought the one Maybach sold in October.  That you Tyler?

Mon, 12/03/2012 - 12:18 | 3029796 Dr. Engali
Dr. Engali's picture

I'm sure they are to the point where they are storing them in a field some place like they were just before bankruptcy.

Mon, 12/03/2012 - 12:19 | 3029805 spastic_colon
spastic_colon's picture

look south of Henderson, NV

Mon, 12/03/2012 - 12:22 | 3029829 resurger
resurger's picture

I recommend that they salvage brand new produced cars, that way they can give an impression of "Recovery"

Mon, 12/03/2012 - 13:08 | 3029979 NotApplicable
NotApplicable's picture

So far the dealers are selling the oldest new cars to themselves as "used." LOL

Mon, 12/03/2012 - 12:23 | 3029834 Hippocratic Oaf
Hippocratic Oaf's picture

That's been going on for some time:

Ports of NJ are cars as far as the eye can see.............ALL GM.

Mon, 12/03/2012 - 13:05 | 3029965 forwardho
forwardho's picture

Auto fema camps? I see a trend.

Mon, 12/03/2012 - 13:16 | 3029991 Dagny Taggart
Dagny Taggart's picture

Or maybe they put them in warehouses where they used to store... oh what did they call it?

Food.

Mon, 12/03/2012 - 12:18 | 3029798 resurger
resurger's picture

Epic!!!!!

Mon, 12/03/2012 - 12:19 | 3029801 Pooper Popper
Pooper Popper's picture

FUBAR!!!

 

Mon, 12/03/2012 - 12:22 | 3029804 LawsofPhysics
LawsofPhysics's picture

If your only tool is hammer, everything else is a nail.  GM makes, although rather poorly, cars and trucks.  That's it.  Moreover, their employees feel entitled to fat salaries and fat pensions.  Now pay up.

What happened to "innovate or die" you ask?  Bailouts that's what.  Enjoy your unintended consequences america.

Mon, 12/03/2012 - 12:24 | 3029840 gmrpeabody
gmrpeabody's picture

I'm not a bit sure they were UNINTENDED...

Mon, 12/03/2012 - 12:27 | 3029846 resurger
resurger's picture

That's what happens when a fucking Ineptocrats run the fucking country and print @ zero cost.

 

Mon, 12/03/2012 - 13:40 | 3030050 epwpixieq-1
epwpixieq-1's picture

"innovate or die" - is just a slogan. An innovation is ALLOWED to happen only if it pushes the current (unsustainable) system ahead ( to the cliff ). The Bailouts are just the consequences of the lock on power expressed in the sort summary below.

A true innovation IS DISRUPTIVE technology, it may be social, but if so, it is termed REVOLUTION.

A true innovative/disruptive technology is NEVER allowed to develop, for it disrupts the balance of power in the current industrial system, and of course, this is what everyone in control of some power or wealth threatened, will fight to protect. This is valid, everywhere in the industrial world, but especially magnified in the U.S. of A where, the monetary and the political power is concentrated on the corporate level and defends a century of accumulated wealth.

Mon, 12/03/2012 - 12:19 | 3029807 Bay of Pigs
Bay of Pigs's picture

GM new slogan,

"Bend over America, you're getting driven to Cleveland".

Mon, 12/03/2012 - 12:34 | 3029862 darteaus
darteaus's picture

Chicago

Mon, 12/03/2012 - 14:04 | 3030147 ParkAveFlasher
ParkAveFlasher's picture

Detroit.

Mon, 12/03/2012 - 12:20 | 3029809 Karlus
Karlus's picture

Short GM and UAW

Mon, 12/03/2012 - 12:21 | 3029811 Tom.the.Bomb
Tom.the.Bomb's picture

Did you hear ?  All new hand held gadgets come with cool photo apps.  Photos, photos and more photos.  Getting faker by the day.  That is all that is selling, pictures of shit.  And food of course.

Mon, 12/03/2012 - 12:57 | 3029944 Cpl Hicks
Cpl Hicks's picture

Hungry?

Here's an Instagram of a plate of mashed potatos and fried chicken smothered in gravy! Enjoy!

Mon, 12/03/2012 - 12:20 | 3029813 Canadian Dirtlump
Canadian Dirtlump's picture

This will doubtless be spun by mongoloid talking heads on TV as a further sign of recovery. The dirty little secret for aut makers is they of course book sales and profits when the cars leave the factory not the lot. This will blow up in their faces eventually. Listening to CNBC this morning on my 40 minute drive to work - I almost was feeling good about the economy lmao. Thanks for the does of reality (aka kool aid repellant).

 

Recall a few years ago, when Daimler was finishing killing chryser. The Obese "joltin" Joe Eberhardt mandated overproduction to the point that chrysler had no place to park unsold vehicles. In the ensuing collapse JOe was rewarded by the teutonic dildos with a string of Mercedes dealerships to manage.

 

 

Mon, 12/03/2012 - 12:21 | 3029814 resurger
resurger's picture

Am so saddened that the increase was not >99K

else, I would have bought GM stocks

Mon, 12/03/2012 - 12:21 | 3029821 BORT
BORT's picture

I drive by the plant in Lansing.  The rail cars for transport have now been arranged in front of the lot to hide the massive inventory .  My local GM dealer expanded his storage to a lot at the mall next door.  What would the PMI and ISM be without the stuffing????

Mon, 12/03/2012 - 12:22 | 3029826 paddy0761
paddy0761's picture

Need a good natural disaster to wipe out all that excess inventory. I should stop haarping on.

Mon, 12/03/2012 - 12:22 | 3029828 media_man
media_man's picture

What will they do with all the excess? Sell it on eBay?

Mon, 12/03/2012 - 12:44 | 3029902 nonclaim
nonclaim's picture

Cash for Clunkers 2 - stuffed channel gets an enema.

Mon, 12/03/2012 - 12:53 | 3029935 MiltonFriedmans...
MiltonFriedmansNightmare's picture

Maybe there will be a terrorist attack that just happens to destroy all this inventory, or perhaps a boating accident.

Mon, 12/03/2012 - 12:25 | 3029830 virgilcaine
virgilcaine's picture

The GM dealer near me has cars and trucks parked on top of each other..epic fail! and they are Re modleing every GM dealership! = bwahahah.

Mon, 12/03/2012 - 13:09 | 3029986 NotApplicable
NotApplicable's picture

All of the Taco Bells around here have remodeled. It's like a real restaurant now!

*facepalms*

Mon, 12/03/2012 - 14:29 | 3030227 edifice
edifice's picture

We'll know it's over when Carl's Jr. starts selling the Extra-Big-Ass Taco.

Mon, 12/03/2012 - 12:23 | 3029833 Downtoolong
Downtoolong's picture

Now all the car dealers need to do is take a lead from the banks and start trading cars with each other. That'll get those sales figures up.

 

Mon, 12/03/2012 - 14:07 | 3030158 ParkAveFlasher
ParkAveFlasher's picture

We are not too far from cars as currency.

Mon, 12/03/2012 - 12:28 | 3029848 Stormtower
Stormtower's picture

Sandy didn't wipe out enough cars & trucks eh? 

Mon, 12/03/2012 - 12:28 | 3029849 SheepDog-One
SheepDog-One's picture

Gotta keep the tractor factories running ya know!

Mon, 12/03/2012 - 12:28 | 3029851 1fortheroad
1fortheroad's picture

I need to order more checks, Im running out of money!!

Mon, 12/03/2012 - 12:29 | 3029854 babylon15
babylon15's picture

Why didn't Hostess get a bailout?  Oh yeah, it's in Texas.

Mon, 12/03/2012 - 12:46 | 3029911 mayhem_korner
mayhem_korner's picture

 

 

Load up the Yukons with Twinkies and maybe they'll start flying off the lots.

Mr. Owl, how many Twinkies can you fit in the back of a Suburban...?  The world may never know.

Mon, 12/03/2012 - 12:30 | 3029856 darteaus
darteaus's picture

Send more Volts to US Embassies!

Mon, 12/03/2012 - 12:32 | 3029864 mayhem_korner
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Was it FDR or Truman who ordered milk to be poured out en masse to prop up milk prices for dairy farmers???  I'm just thinking maybe someone should be driving GM cars off the Brooklyn and Golden Gate bridges to help things along.  Thelma?  Louise?  Anybody?

Mon, 12/03/2012 - 13:12 | 3029992 NotApplicable
NotApplicable's picture

FDR did all sorts of crazy shit. Dunno 'bout Truman. He was likely too busy listening to Pendergrast to care.

Mon, 12/03/2012 - 14:16 | 3030192 viahj
viahj's picture

host a nation-wide community destruction derby

Mon, 12/03/2012 - 13:08 | 3029869 Everybodys All ...
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Now that the election is over you can expect a huge reversion back to the median.

Mon, 12/03/2012 - 12:35 | 3029871 Billy Shears
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"Corporations" are just hosts for the parasitic MBA/business elites to suck dry while laying waste to the equityholders. All condoned and sanctioned by the their lackeys in DC. After all it's what they are getting "paid" for.

Mon, 12/03/2012 - 12:35 | 3029872 FLUSA.com
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My office building has plenty of parking spaces I'll lease to GM.  Give me a call...

Mon, 12/03/2012 - 12:35 | 3029874 game theory
game theory's picture

In 2013, the US gov't will buy new cars for all federal employees.  Then, the federal reserve will announce an asset purchase program that will include GM vehicles.  Suddenly, the reason that all those hedge funds decided to stuff GM into their portfolios will make sense.  

 

Just when you think things can't get any weirder and more corrupt, they absolutely will. Just wait for it.

Mon, 12/03/2012 - 12:36 | 3029877 ZFiNX
ZFiNX's picture

das volkswagon

Mon, 12/03/2012 - 12:39 | 3029885 Ballin D
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Its all about the endgame.. theyre making these cars at 2012 prices so they can sell them at huge premiums once hyper-inflation kicks in.

Mon, 12/03/2012 - 12:43 | 3029898 Glass Seagull
Glass Seagull's picture

Ironically, GM dealers moved lots of used inventory earlier in the quarter.  Heard that some GM plants were going to see "imposed vacations" due to inventory glut. 

But please don't call it a furlough.

Mon, 12/03/2012 - 12:44 | 3029901 BraveSirRobin
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What are total US car and light truck inventories? Interested in the big picture, not just GM. Anyone have a link?

 

Mon, 12/03/2012 - 12:53 | 3029930 Cpl Hicks
Cpl Hicks's picture

Somebody check Steven Ratner's colon. There's a possibility that a couple of Volts have been stuffed up there.

Mon, 12/03/2012 - 14:05 | 3030152 mayhem_korner
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<loudspeaker> Senator Fwank please report to Mr. Ratner's office for a colon check!

Mon, 12/03/2012 - 12:53 | 3029931 Aurora Ex Machina
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London:

1903 - 11,500 horse cabs (7,500 hansoms; 4,000 4-wheelers).

1914 (pre-War) - P.S.V.s (Public Service Vehicles) - 3,000 motor buses, 3,000 electric trams - less than 100 horse trams left, 7,000 motor cabs, 1,300 4 - wheeled Clarence and Growlers, 200 Hansoms.

 

Wonder what happened to all those horses? Perhaps there's a reason meat pies & sausages are a British speciality. 

 

Google's self-guided car could drive the next wave of unemployment (Guardian, take with salt)

Mon, 12/03/2012 - 13:27 | 3030034 Spastica Rex
Spastica Rex's picture

Fun article! I loved this (from Google's co-founder):

Too many people are underserved by the current transport system. They are blind, or too young to drive, or too old, or intoxicated.

That's great! Someone is finally recognizing the plight of the underserved intoxicated people of our world.

Mon, 12/03/2012 - 12:57 | 3029947 BraveSirRobin
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The "channel stuffing" is Sandy's fault. All those unbought cars because of the hurricane.

Mon, 12/03/2012 - 13:02 | 3029960 earnyermoney
earnyermoney's picture

Barry did ask for $50 Billion in his budget "compromise".

Mon, 12/03/2012 - 13:05 | 3029967 ncdirtdigger
ncdirtdigger's picture

They should give away a Nobel Prize in Economics with every purchase of a GM vehicle.

Mon, 12/03/2012 - 13:06 | 3029968 ncdirtdigger
ncdirtdigger's picture

They should give away a Nobel Prize in Economics with every purchase of a GM vehicle.

Mon, 12/03/2012 - 13:10 | 3029989 dscott8186
dscott8186's picture

Why so gloomy? GM has been stocking up since 2009, the chart indicates each November is at least 100k more cars in inventory than the year before.  They are anticipating the economy to taking off and are positioned to make a killing... Sooner or later this yearly bet has to pay off.

/sarcasm/

Mon, 12/03/2012 - 13:15 | 3030002 earnulf
earnulf's picture

Okay, based on the wsj and the above graph, it would appear that gm is producing at an annual rate of nearly 3 million vehicles, while actually selling just over 2.1 million.

Question 1: What percentage do large vehicles make up that 778K of channel stuffing?

Question 2: Are similar numbers of vehicles on lot being reported by other companies?

The Toyota dealership in Joplin Missouri seems to be storing vehicles on lots several blocks from the dealership as well as behind the dealership and on the dealer lot itself.    If this is going on for more than just GM then the auto industry as a whole is headed for a major meltdown when things really go south.    As it is, you can't take a part off a 2012 and put it on a 2011, the OEM changes won't let you, which means you have to buy the OEM part with the two screws instead of just the one.

Mon, 12/03/2012 - 13:16 | 3030004 Bawneee Fwank
Bawneee Fwank's picture

These vehicles will be purchased by your local and state governments...as well as fed.  Look around your county and city, every city, county, and state vehicle is a chevrolet or dodge.  Back before the government took over GM/Chrysler every local county and city vehicle around me was Ford.  Just saying, I could care less what my local city, county, and state purchase but since the bailouts I have noticed that all city/county vehicles are chevrolet and that goes for my surrounding area.

Mon, 12/03/2012 - 13:49 | 3030095 pursueliberty
pursueliberty's picture

Yep,

almost all dodge chargers, durangos, or like our sheriff department, loads of tahoes.  Our city cops do have a couple of taurus.  The highway patrol is all chargers now.  Sheriffs still have a couple crown vics.

Mon, 12/03/2012 - 13:17 | 3030009 Cortez
Cortez's picture

Starting in 2013, Federal Tax refunds will be given out in GM bucks.

Mon, 12/03/2012 - 13:30 | 3030040 dscott8186
dscott8186's picture

Question for Tyler:  Has GM's gross sales in terms of dollars been the same for the last 4 Novembers?  

Maybe a better question to ask what has been GM's gross sales of units and dollars been since 2009?  I ask since that recent article proposed US GDP was shrinking in terms of percentage to world output.  Would this be a real indicator of inflation?

Mon, 12/03/2012 - 13:47 | 3030084 pursueliberty
pursueliberty's picture

 

You wouldn't think they had too many on lots if you were shopping for one right now.  With tax time coming up it is time to buy something to depreciate by year end, as is usual business.  My moms 09 tahoe is up for replacement, so I've been shopping.  The tahoe stickered around $52k, paid exactly $10k less.  Purchased in Novemeber 09 as a 09 model with 10 models on the lot.  Now he has lots of 12's on the the lot, lots of 13's on the lot, and they have shit for rebates.  I mean, you can take 0% for however long, but a measily $4k rebate on a 12 model in december.  They don't really want to sell one I guess.  Gotta have a 6k gvwr to meet the bush tax cut standards for accelerated depreciation.

Mon, 12/03/2012 - 13:47 | 3030085 NEOSERF
NEOSERF's picture

Cmon ZH, if you are going to buy back the financing arm to hide these kinds of numbers more effectively, you have to show the government some growth.  Now the gov is wanting out of GM even at a loss on their 32% stake in this pig so we are in full "lipstick mode". 

Mon, 12/03/2012 - 14:00 | 3030134 mendolover
mendolover's picture

How would one find an historical comparison to what these numbers really should show in a 'normal' trend?

Mon, 12/03/2012 - 14:05 | 3030135 TalkToLind
TalkToLind's picture

There was a time when GM dealerships would park their overflow inventory in the grass of the neighboring lots.  Back then they would lease the extra space from the land owner.   These days GM owns the neighboring lots and is having them paved over to hold their massive inventory.  And the moral of this story is:  If you can't sell cars, get a government loan and buy land instead!

Mon, 12/03/2012 - 14:17 | 3030194 Fix It Again Timmy
Fix It Again Timmy's picture

If GM drove each car right out of the factory and into the compactor - they would probably lose less money...

Mon, 12/03/2012 - 14:23 | 3030209 edifice
edifice's picture

LOL'd at this one. Thanks for the visual!

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