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Mainstream Media Finally Reports On GM's Channel Stuffing Scandal

Tyler Durden's picture




 

Yet another story we have been following for nearly two years (and here) has finally migrated over to the Mainstream Media as attempts to hush it down before it become painfully obvious and problematic, have failed miserably. The WSJ writes that "Detroit auto makers are piling up big stocks of passenger cars at dealers despite brisk new-vehicle sales in the U.S.—a problem that executives vowed to avoid since their painful downturn three years ago."

WSJ continues:

General Motors Co. GM -0.39% ended November with enough Malibu sedans and Camaro sports cars to last more than five months at the current rate of sales. Ford Motor Co. F -0.88% had more than four months' worth of Fiesta subcompacts and Chrysler Group LLC had a nearly six month stock of its 2013 Dodge Dart.

It's an abrupt reversal from a year ago. In 2011, U.S. auto makers' market shares, especially in compact cars, soared as gasoline prices jumped and Japanese auto makers struggled with back-to-back natural disasters. This year, production at Toyota Motor Corp. 7203.TO -0.28% and Honda Motor Co. 7267.TO -0.66% came roaring back. Both began offering deeper sales incentives, something they hadn't done for many years. That has the Detroit Three in a quandary: Do they cut production or match incentives?

"They [the Japanese auto makers] really had to get aggressive about getting their market share back and maybe that did catch some by surprise or even flat-footed," said Edmunds.com automotive analyst Michelle Krebs. Toyota and Honda "have a lot of zero-percent financing" rates.

"Look at the ads, you see a lot of zero, zero, zero," she said. Edmunds.com also estimates that 38% of Toyota-financed sales last month carried interest-free loan rates.

...

GM also miscalculated demand for its pickup trucks. The industry norm for U.S. auto makers is between 60 days and 70 days of sales in inventory. GM had 138 days worth of Chevrolet Silverados at the start of this month. In passenger cars, its Chevrolet Cruze inventory jumped to 64,390 vehicles or 96 days. One of the two plants that GM will idle this month produces the Cruze.

 

"We thought the economy would have been further along at this point but as we look into December and 2013, we will get a tailwind from housing which benefits not only autos but the entire economy," said GM spokesman Jim Cain. "The one thing we won't do is commit the sins of the past and lose our discipline around rental cars and incentives. Our competitors may be doing it, but we have come too far to go backward and do something that may hurt our brands."

In other words: the disconnect between reality and hope has struck once more, and sadly for the optimists and those who specialize in budgeting hockeysticks, reality wins once again.

The WSJ does add some incremental value by observing the substantial, margin collapsing rebates all carmakers are forced to provide just to get inventory out of the door:

Toyota's average incentive per vehicle rose to $2,075 in November from $1,717 in January, according to automotive tracking firm TrueCar.com. Zero percent interest rates aren't counted in TrueCar's incentives tally.

 

Honda, meanwhile, has increased its average incentive to $2,428 from $1,978 in February despite releasing new versions of its top selling cars in the past year. The largest incentives offered in the U.S. last month were from Japan's Nissan Motor Co., 7201.TO +0.39% whose Altima has become a top selling sedan. Its average jumped to $4,273 a vehicle last month from $2,764 in January.

 

That is not to say the U.S. auto makers aren't also using incentives. Ford now offers as much as $2,895 off its 2013 Focus sedan, which had only two months' of inventory to start the month. Fiat SpA's F.MI -0.51% Chrysler has offered up to $5,000 off its Ram pickups, which had 3.5 months of inventory to start the month. GM has recently offered between $2,900 and $3,500 in average incentives for its vehicles, according to Truecar.com.

In conclusion:

Producing too many cars and trucks is a problem the U.S. auto makers have wrestled with since the late 1970s. To keep their factories humming, GM, Ford and Chrysler would build vehicles and stock them at pop-up parking lots created on vacant land throughout the Detroit area. When the stocks grew onerous, they would unleash heavy incentives that eroded profitability and brand image.

 

Today, all three face tough decisions on cutting production or profitability as inventories have soared. Ford, for instance, finished November with 18,336 unsold Fiestas, or 124 days worth of supply, compared with 96 days in October.

 

The Dart, Chrysler's most important new offering of the year and its first compact sedan since 2005, began December with a 173 day supply. Sales of the Dart slipped in November compared with the previous two months.

And the punchline: all this is happening even as captive lending units, either standalone or government owned (ahem Ally, aka soon to be fully-GMAC once more) are lending money hand over fist to anything with a pulse as LTVs are back over 100% once more, and the average FiCo score of car loan borrowers is now arguably lower than where it was back in 2007.

In summary - wondering why GM is set for another inevitable bankruptcy and bail out? Here's why:

 

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Wed, 12/05/2012 - 09:15 | 3035097 CPL
CPL's picture

So more dealerships are going under, like auto malls weren't depressing enough to drive through nowadays.

Wed, 12/05/2012 - 09:47 | 3035195 Death and Gravity
Death and Gravity's picture

MSM only a year behind ZH. Gives me a cozy feeling to be part of this motley bunch.

Wed, 12/05/2012 - 09:52 | 3035211 CPL
CPL's picture

Yarr!

Wed, 12/05/2012 - 10:12 | 3035265 Big Slick
Big Slick's picture

Prepare to be boarded , matey!

(BTW - Jeep, Dodge, and Chevy banners on left, top, and right of my screen respectively!  At least ZH is profiting from auto's mistakes :)  Avast ye!)

Wed, 12/05/2012 - 11:54 | 3035660 TruthInSunshine
TruthInSunshine's picture

Once again, Zero Hedge is  YEARS ahead of the Main & Quite Lame Stream Press-- the media "institution" and "pillar" of an enlightened society that has failed so miserably in even REMOTELY serving as an independent, objective observor and conveyor of FACTS or TRUTH, but that has instead become a DEEPLY CAPTURED PROXY PROPAGANDA arm of the government (is it any surprise, since 6 corporations own every network, cable station, newspaper, magazine, radio station or other form of "media" in the USAA?), which is itself DEEPLY CAPTURED by the KronyKapitalistKomrades of Finance/Banking/Wall Street (e.g. Warren "Let's Rape the Taxpayers Harder Via Bailouts amIright, Charlie Munger?" Buffet; e.g. The Honorable Jon "Vaporizer-- Poof It's Gone!" Corzine, etc.).

From High Frequency Trading, to the travails of one very much deficit/debt monetizing Federal Reserve (headed by Ben "The Federal Reserve Will Never Monetize the Debt" Bernanke), to  BLS (Bureau of Lies & Stories) chicanery & outright lies, to shadow banking liabilities, and everything in between that the Main & Lame Ass Stream Media is too incompetent and/or too corrupted to "bother" to report, there's always Zero Hedge.

Here's just one more very recent example of the ultimate FAIL...even outright FRAUD that is the U.S. Media:

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

Wed, 12/05/2012 - 09:16 | 3035098 GetZeeGold
GetZeeGold's picture

 

 

They moved most production to Chiina......they're making cars like rabbits. What are they supposed to do with all of them?

Wed, 12/05/2012 - 09:20 | 3035107 EscapeKey
EscapeKey's picture

Implicitly, get the taxpayer to fork out for them?

Wed, 12/05/2012 - 10:18 | 3035282 Big Slick
Big Slick's picture

Speaking of sticking the taxpayer, isn't it about time ol' Barry rolls out another cash for clunkers program?  Those 4-year old Fords should be losing their new car smell right about now and we cannot have that.

This world has turned into a joke.

Wed, 12/05/2012 - 12:01 | 3035795 catacl1sm
catacl1sm's picture

You must have missed the article about the ecoboost engines catching fire.

Wed, 12/05/2012 - 09:32 | 3035149 smlbizman
smlbizman's picture

i think you need to redefine mainstream media....mainstream would be tmz, entertainment tonight, talk soup...i would think the  wall street journal would be considered the same as broccoli to a fat fuck to todays american...

Wed, 12/05/2012 - 09:46 | 3035191 CynicLaureate
CynicLaureate's picture

The Daily Show.

Most people under 30 get their news from the Jon Stewart. 

Wed, 12/05/2012 - 09:49 | 3035205 GetZeeGold
GetZeeGold's picture

 

 

Meant to say propaganda.....fixed it for you.

Wed, 12/05/2012 - 09:58 | 3035229 yogibear
yogibear's picture

No wonder they think globalism, consumerism and socialism will fix everything. 

Wed, 12/05/2012 - 10:19 | 3035292 LouisDega
LouisDega's picture

My MSM is Sundance film channel and Turner classic movies. There was no mention of this GM stuffing. BTFD

Wed, 12/05/2012 - 10:06 | 3035243 GMadScientist
GMadScientist's picture

Anything tainted by the Murdoch should not be considered fit for human consumption.

Wed, 12/05/2012 - 17:19 | 3037152 Gift Whores
Gift Whores's picture

The cars or the rabbits?

Wed, 12/05/2012 - 09:19 | 3035104 EscapeKey
EscapeKey's picture

Gee I wonder if that's in any way connected to the government picking winners.

Wed, 12/05/2012 - 09:19 | 3035108 digitlman
digitlman's picture

You mean weiners.

Wed, 12/05/2012 - 09:26 | 3035125 ihedgemyhedges
ihedgemyhedges's picture

Who picks the weiners now given that Barney Frank is out of Congress?

Wed, 12/05/2012 - 09:38 | 3035141 GetZeeGold
GetZeeGold's picture

 

 

Boehner just banned the conservatives from Congress.....the only thing left is a bunch of dicks.

 

Brace for impact.....cause here it comes.

Wed, 12/05/2012 - 17:21 | 3037165 Gift Whores
Gift Whores's picture

Maybe someday that will matter.  A spender is a spender, no matter how small.

Wed, 12/05/2012 - 09:20 | 3035109 Lost Wages
Lost Wages's picture

All my anarcho-primitivist dreams are coming true. Industrial Civilization is eating itself.

Wed, 12/05/2012 - 09:32 | 3035144 Freewheelin Franklin
Freewheelin Franklin's picture

Yes! We can all make hammocks and roll around in the mud with chickens at Twin Oaks.

 

I got a thing about chickens.

Wed, 12/05/2012 - 10:06 | 3035245 GMadScientist
GMadScientist's picture

How does the chicken "consent"?

Wed, 12/05/2012 - 10:17 | 3035300 Yes_Questions
Yes_Questions's picture

 

 

EEUW and EEUW!

Wed, 12/05/2012 - 09:23 | 3035110 ZFiNX
ZFiNX's picture

They'll likely discount (see subsidize) the hell out of the cars. That will complete the stimulative circle-jerk. The dealers (see farmers) get subsidized and the public (see twinky-eaters) gets cheap cars. Alternatively, they could replicate the farmer subsidization and just buy the cars and withhold them from the market. This central-economic planning gets more twisted by the day.

 

Wait, wasn't the government going to replace their whole fleet with GM cars? Seems like a long euphemism for cornering the GM market.

Wed, 12/05/2012 - 09:24 | 3035113 Cdad
Cdad's picture

Some should really ask Phil LeBeau over at The BlowHorn [CNBC] just how he missed this story for the last two years.  Thank you, ZeroHedge, for taking over the task of properly reporting financial news.

The GM  brand is terminal, if you ask me.  President Zero and the cronies who bailed this thing out have made sure that is the case.  Any day that GM shares are not zero is a good day to sell them.

Wed, 12/05/2012 - 09:25 | 3035121 Screwball
Screwball's picture

They didn't miss it.  It's on their "do not report" list.

Wed, 12/05/2012 - 11:20 | 3035609 Atlantis Consigliore
Atlantis Consigliore's picture

where Framer? sell sell sell. ...Tresury flips 500 million shres to the FED ny as reserves for printing to buy us Treasury paper,.....sell sell sell. 

Wed, 12/05/2012 - 09:24 | 3035116 Coldsun
Coldsun's picture

They'll just make credit more accessible to sell more. Oh wait, GMAC (taxpayers) are already doing it?

Wed, 12/05/2012 - 09:26 | 3035119 Quinvarius
Quinvarius's picture

Channel stuffing?  I prefer "well endowed channel".  Just don't follow up with "bend over America, I have a surprise for you".

Wed, 12/05/2012 - 09:26 | 3035120 Sudden Debt
Sudden Debt's picture

What amazes me most is how you can't run a profit on a good that EVERYBODY uses...

Is quite expensive...

contains about 100$ in metal

and a lot of plastic...

and we've been making them for over a hundred years now so not all needs to be reinvented every time you make a new one...

and Audi and VW are working on a 600 Mpg car... while American cars at what again? 60Mpg?

Wed, 12/05/2012 - 10:23 | 3035332 Imminent Crucible
Imminent Crucible's picture

American cars at 60 miles per gallon? I think you meant to say "kilometers per gallon". 

And please don't bring up the Volt. The Chevy Volt is not a car. There's a very fractious debate going on here over what the Volt actually is. Some maintain that it is a $40,000 electric-assist shopping cart developed for use by Wal-Mart customers who are too heavy for the conventional battery carts. The other camp argues that it's a device to aid in starting garage fires.

I always just assumed the Volt was a ruse to make it look like the U.S. government is not a complete ecological catastrophe. In any case, it's clear that the U.S. car-buying public does not want to substitute a golf cart for their beloved USS Admiral Nimitz on wheels. Pretty soon I expect the Obama administration to issue an edict that one-third of all lvehicles sold in the U.S. must be a Volt---but the taxpayers will supply a $10,000 subsidy per Volt and zero down, zero percent financing.

That ought to put a dent in the vast fields of unsold Volts. Not.

Wed, 12/05/2012 - 11:48 | 3035742 Vince Clortho
Vince Clortho's picture

Funniest post so far today.  Well Done!

Wed, 12/05/2012 - 09:27 | 3035126 Shizzmoney
Shizzmoney's picture

This just in: Mice still like cheese.

Wed, 12/05/2012 - 09:28 | 3035128 moriarty
moriarty's picture

Ye-har

Wed, 12/05/2012 - 09:27 | 3035129 monopoly
monopoly's picture

It just never stops. Last night on ABC useless news they advised the housing market is "rocketing higher". Used Orlando as an example. What do they gain buy lying to us? They just lose credibility and we turn them off. Pathetic broadcasting.

Wed, 12/05/2012 - 09:34 | 3035152 in-Credible Banker
in-Credible Banker's picture

And it was the lead story!!!!!!!!  The crazy thing is (doing this from memory) that there was no empirical data used to support the idea of "rocketing higher"....just the anecdotal evidence of a couple of isolated streets in the hardest hit areas.  UNBELIEVABLE!!!

Wed, 12/05/2012 - 09:34 | 3035153 Freewheelin Franklin
Freewheelin Franklin's picture

It's not a lie if people believe them.

Wed, 12/05/2012 - 10:08 | 3035252 jcaz
jcaz's picture

ROFLMAO! As someone who lives in Orlando, I guess I missed the memo about the "rocketing higher" housing market-  all I see is "take your pick" of empty and shelved houses for sale-  most of which don't even bother to advertise anymore, for fear of showing up in the stats.......

But hey, ABC-  don't let the truth get in the way of your reporting.....

Wed, 12/05/2012 - 09:28 | 3035130 azzhatter
azzhatter's picture

Wait until Obamacare creates a nation of part time workers. How many going to buy new $30K+ cars? As always, will end badly

Wed, 12/05/2012 - 09:36 | 3035160 Mr. Lucky
Mr. Lucky's picture

Not to worry; soon we will have the ability to put car payments on an EBT card.

sarc.

Wed, 12/05/2012 - 10:03 | 3035240 yogibear
yogibear's picture

Another round of cash for clunkers after sales dries up. With an unlimited credit card (no debt ceiling) anything is possible. 

Wed, 12/05/2012 - 09:28 | 3035133 uncle_vito
uncle_vito's picture

Maybe Detroit will have a hurricane and all these cars will flood.   They are insured, aren't they?

Wed, 12/05/2012 - 09:29 | 3035136 Sudden Debt
Sudden Debt's picture

They should hang out BIG signs on those lots that say:

DEAR TAXPAYERS! YOU PAID FOR THEM 10 TIMES OVER! JUST TAKE ONE IF YOU WANT ONE!!

Wed, 12/05/2012 - 09:29 | 3035137 Miss Expectations
Miss Expectations's picture

Dodge Dart?  Really?

They know not what they're doing.

Wed, 12/05/2012 - 10:17 | 3035295 WillyGroper
WillyGroper's picture

 I've been waiting with rabid anticipation for the resurrection of the AMC Gremlin. ;oD

Wed, 12/05/2012 - 10:26 | 3035346 Imminent Crucible
Imminent Crucible's picture

It's the Pacer that sets my heart on fire. Can I show you my collection of beautifully restored Yugos?

Wed, 12/05/2012 - 10:40 | 3035405 Common_Cents22
Common_Cents22's picture

The pontiac Aztec was aesthetically way before its time, it'll be viewed as sleek apple-ish design soon!

Wed, 12/05/2012 - 10:24 | 3035335 Spastica Rex
Spastica Rex's picture

Fiat Fart

Wed, 12/05/2012 - 09:30 | 3035138 ebworthen
ebworthen's picture

The automakers won't channel stuff, the banks won't lever up with CDS's and MBS's, the FED isn't moentizing debt (or acting like a bad bank), CONgress will represent The People, etc., etc., etc.

The list of lies and "I promise I won't do it again"'s is pretty big.

The problem with domestic production is an aging and increasingly poor population and a lack of exports.  Judging fromt the commercials I see a lot of money is going for catheters, scooters, prescription meds, and Medicare supplemental insurnace instead of GM or Chrysler.

Wed, 12/05/2012 - 11:52 | 3035756 Vince Clortho
Vince Clortho's picture

So out-sourcing millions of jobs overseas has had a negative impact on consumer purchasing power.

Who could have seen that one coming?

Wed, 12/05/2012 - 09:35 | 3035150 caimen garou
caimen garou's picture

soon they will be giving a new car with every purchase of a apple product, wait a minute did i just give away a marketing idea?

Wed, 12/05/2012 - 20:55 | 3037768 StychoKiller
StychoKiller's picture

My wife just got a re-subscription proposal in the mail for a medical journal, $1000/yr (for two years) -- including a FREE iPad -- only in America!

Wed, 12/05/2012 - 09:35 | 3035156 ak_khanna
ak_khanna's picture

The economic system before the bursting of credit crisis was one of capitalism and free economy where businesses took risks to earn profits and bonuses and closed shop if they were not successful and incurred losses to be replaced with better managed companies. Since 2008 this has changed to one where the influential and well connected corporations enjoyed enormous profits and bonuses when they took exceptional risks with other people’s money and if they incurred heavy losses, the sympathetic governments and central bankers would arrange for the taxpayers to bear those losses.

http://www.marketoracle.co.uk/Article35345.html

www.letstalkmoney2012.in

Wed, 12/05/2012 - 09:37 | 3035161 orangegeek
orangegeek's picture

Maybe GM can partner with the China government and park some of these "stuffed channel cars" in the empty Chinese cities - so the satellite shots look like someone is living there.

 

By the way.  Any news on the $3000 cars coming from Tata?  Bye Bye GM.

Wed, 12/05/2012 - 10:00 | 3035232 negative rates
negative rates's picture

Better yet, take the excess cars down to shore, and wait for the storm to arrive. Then simply take the insurance write off. Or if that won't happen fast enough, bring um to the slums of detroit, on their way to say, Alaska. And in a matter of moments they will be vandalized and the subsequent write off. It's just that easy to correct the numbers, and have a profit to boot.

Wed, 12/05/2012 - 10:10 | 3035258 yogibear
yogibear's picture

"Any news on the $3000 cars coming from Tata? "

In the US, naw,even a riding lawn mower may be safer. There are DOT standards they don't have in India. Under powered and unsafe it may be one way to reduce the less intelligent American population.


Wed, 12/05/2012 - 09:39 | 3035162 q99x2
q99x2's picture

Starve the monster and stop paying taxes. Someone told me once to go contract under your own company and lose money for three years then start another company and so on. I told them that if I ever decide to work that sounds like a plan. It is un-American to pay taxes to the NWO.

Let the Rockefellers and Rothschilds bail out GM and everyone else for that matter. They stole the money.

Wed, 12/05/2012 - 11:56 | 3035769 Vince Clortho
Vince Clortho's picture

Problem is they created this thing called "the Fed".

It is turning out to be the ultimate Wealth Transfer Machine.

Mr. Peabody and Sherman would be jealous.

Wed, 12/05/2012 - 10:20 | 3035171 slackrabbit
slackrabbit's picture

Government Motors To Big To Fail...

Wed, 12/05/2012 - 09:39 | 3035172 williambanzai7
williambanzai7's picture

Yet somewhere today I read an MSM story that said GM is selling like gangbusters.

Wed, 12/05/2012 - 09:43 | 3035181 billwilson
billwilson's picture

 Ford, for instance, finished November with 18,336 unsold Fiestas, or 124 days worth of supply, compared with 96 days in October.

So .... they managed to up days supply by 28 days in a month with 30 days ... so assuming a steady production cycle ... they sold 2 days worth of production in the month .... OOOPS

Wed, 12/05/2012 - 09:44 | 3035182 azzhatter
azzhatter's picture

Looking at those inventory numbers that have nearly doubled since Dec 2009, they had better be doubling sales.

Wed, 12/05/2012 - 09:56 | 3035186 Samsonov
Samsonov's picture

The automakers didn't want to get caught "flat footed", so they ramped up production.  In other words, they had hope that the economy would go parabolic and they feared missing the rally.  They are momentum chasers.  And we know what happens to them.  Now, for the first time I will use my new favorite expression from the article: "Reality wins, once again."

Wed, 12/05/2012 - 09:52 | 3035200 Monedas
Monedas's picture

Is one of you leftist clowns going to quote Karl Marx ?  Lost Wages ?

Wed, 12/05/2012 - 09:51 | 3035209 negative rates
negative rates's picture

A car company? Yea, I think I want to get me one of those.

Wed, 12/05/2012 - 11:52 | 3035212 forwardho
forwardho's picture

The story is in the stock values.

GM -0.39

ford -0.88

toyota -0.28

honda -0.66

These are bellweather companys. The stuffing, and the drop in "value" is a staggering indicator for the rest of the [Production] economy. 

This is a very loud warning bell, Unfortunately it seems to be ringing in a vacuum.

Wed, 12/05/2012 - 09:57 | 3035223 thewhigs
thewhigs's picture

"GM also miscalculated" and "We thought" (said GM spokesmaan Jim Cain)-no need to say anything else.

 

Wed, 12/05/2012 - 10:09 | 3035256 azengrcat
azengrcat's picture

LEAN Manufacturing: Holy F***, your doing it wrong.

Wed, 12/05/2012 - 10:12 | 3035268 FLHRS
FLHRS's picture

The result of Obama's back door push to get people, factories and parts suppliers going this summer and fall, so he could get the rust belt votes.  Now what.

Wed, 12/05/2012 - 10:12 | 3035269 yogibear
yogibear's picture

Another Cash for clunkers coming if Obama can dump the debt ceiling and have an unlimited credit card. Obama and his wife love to spend. Money is no object when it's someone elses.

Wed, 12/05/2012 - 10:12 | 3035274 surf0766
surf0766's picture

reminds me of mid 2008 when someone went on tv screaming about how no one knew nothing adding to the crisis...   looks like they are trying to create the next crisis to push the final marxist solution upon us.

Wed, 12/05/2012 - 10:14 | 3035279 Monedas
Monedas's picture

S .... Y .... R .... I .... A  !   Syria !   (Rolling Stones "Gloria" cerca 1965)       

Wed, 12/05/2012 - 10:19 | 3035307 orangedrinkandchips
orangedrinkandchips's picture

Look, if you are looking for a car, new, YOU HAVE TO HIT THE USED CAR SITES.....

try....i dare you...to find a Toyota 4runner! My buddy tried several years ago when they were around more and NOT JACK SHIT....unless you wanted to go to Alabama to pick it up!

Now.....YOU CAN FIND THOUSANDS AND THOUSANDS OF USED JEEPS.....why? cause they suck ass. Nothing personal Chrysler....just the fact that the Asians can make cars and we cant. Game over.

KEEPING THE BUSINESS ALIVE FOR SENTIMENTAL REASONS??? 

die GM...die!

Wed, 12/05/2012 - 10:21 | 3035309 virgilcaine
virgilcaine's picture

Drive the unsold cars around the block, cut the price 50% and call them used Cars.! New New GM business model.

Wed, 12/05/2012 - 10:21 | 3035313 orangedrinkandchips
orangedrinkandchips's picture

"Hanging on in quiet desperation is the English way....THE TIME IS GONE...THE SONG IS OVER...THOUGHT I HAD SOMETHING MORE TO SAY...."

Pink Floyd

 

KEEP IT ALIVE....JUST KEEP THAT CORPSE AT THE BREAKFAST TABLE.....DONT LET GO! HANG ON 

Wed, 12/05/2012 - 10:23 | 3035327 ptoemmes
ptoemmes's picture

I suppose/assume that a vehicle is considered sold when delivered from the manufacturer to the dealership.  Not sure excaclty where the uint has to be physically:in the dealer's possesion, at the port, on the truck, in the mfg lot, etc.  Dealers do have to finance their "floor" inventory.

I also assume that new car registrations reflect when the vehicle is actually sold to an end user, but am further not sure how that might work when it is a rental unit, government vehicle, etc.

My point is I have no doubt there is much channel stuffing.  I just wonder if there is a different way to quantify it.

 

 

Wed, 12/05/2012 - 10:30 | 3035360 Pairadimes
Pairadimes's picture

Nothing that a 'buy one, get three free' promotion or a federal 'GM Dealer Inventory Excess Carry Cost Tax' on your IRS return can't fix.

Wed, 12/05/2012 - 10:33 | 3035372 Common_Cents22
Common_Cents22's picture

"I see dead Chevys."

 

Maybe Obamageddon and CONgress will pull an obamacare move.   Everyone deserves a car.  We'll hire another 50k IRS agents and implement ObamaCar tax.   You are required to buy a car or you will pay an IRS penalty.

Wed, 12/05/2012 - 10:37 | 3035390 CheapBastard
CheapBastard's picture

Hostess is not GM.

Wed, 12/05/2012 - 21:08 | 3037793 StychoKiller
StychoKiller's picture

So, go long Twinkie™-mobiles?

Wed, 12/05/2012 - 10:43 | 3035423 Common_Cents22
Common_Cents22's picture

The best way to buy a used car.  Find a car broker or any small time dealer that goes to dealer to dealer auctions such as Manheim.   Just pay him a few hundred bucks as a finders fee.   You buy with cash at true dealer cost but could finance it after, off lease cars etc..2-3 yrs old, saving several real thousand bucks.    The dealer/broker can log into Manheim and give you a list of recent sale prices for the vehicle you are looking for.   

Wed, 12/05/2012 - 10:46 | 3035438 Doug
Doug's picture

There's always a bull market somewhere.  (or is that bullsh*t market?)

Wed, 12/05/2012 - 11:29 | 3035653 sessinpo
sessinpo's picture

WSJ readership is under 5 million. This is hardly a victory. I'll let you do the math on how much 5 million is on either the US population or the world population.

 

There is a severe problem in defining the MSM and what it actually reports. The typical person does not read the WSJ. Furthermore, the other MSM outlets do not pick up on such stories.

 

Until that starts to happen regularly TD, the WSJ has very little impact on the general population. It only confirms what you have been reporting for months now. But for the average person on the street, they would have no idea of what the term "channel stuffing" even means.

Wed, 12/05/2012 - 12:52 | 3036052 justsayin2u
justsayin2u's picture

Don't forget about their $45.4B in tax savings they enjoy over the next few decades!  As long as they can generate a profit to shield (GMAC mebbe????).  Jus another governmant scam.

Wed, 12/05/2012 - 20:20 | 3037703 WillyGroper
WillyGroper's picture

Got a mailer today. "Total Vehichle Elimination Event". You may have won a 2013 Chevy Cruze. Bring the key to your dealer for a scratch & win!

Pretty desperate.

Wed, 12/05/2012 - 22:43 | 3038037 sydneybound
sydneybound's picture

I don't want to be a party pooper, but there is certain amount of seasonality regarding November levels.  Look at previous years and it happens every time.  I'm not saying that there isn't channel stuffing happening, but I am saying that November has historically had a huge jump and then back down in December.

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