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The "Stuffing" Is Back As GM's February Dealer Inventory Soars To Second Highest Ever

Tyler Durden's picture




 

For those technical analysis aficionados who enjoy charts that go "from the lower left to the upper right" as much as the next predictor of the future, may we recommend some deep OTM calls on GM's now endless channel-stuffing (a topic we have discussed to death and back here), which saw the bailed out company from the currently bailed out city, a near record 743K cars with dealers - the second highest ever. This is obviously an indication of soaring, if inverse, demand for the cars only federally-funded NINJAs can love.

Source: GM

 

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Fri, 03/01/2013 - 16:22 | 3291428 nightshiftsucks
nightshiftsucks's picture

So thats why it's been so busy at work.

Fri, 03/01/2013 - 16:39 | 3291492 Buckaroo Banzai
Buckaroo Banzai's picture

Like every good turkey, GM is full of tasty stuffing!

Fri, 03/01/2013 - 16:44 | 3291513 DoChenRollingBearing
DoChenRollingBearing's picture

I wonder how "stuffed" Hyundai´s channels are....

Fri, 03/01/2013 - 17:53 | 3291769 Whoa Dammit
Whoa Dammit's picture

Local BMW channel stuffed dealers park their excess at the Andretti go cart lot. 

Fri, 03/01/2013 - 18:18 | 3291841 negative rates
negative rates's picture

Go tax payer funded GM nijas.

Fri, 03/01/2013 - 19:23 | 3292026 WayBehind
WayBehind's picture

They still make cars? Who knew!

Fri, 03/01/2013 - 19:04 | 3291963 clara-to-market
clara-to-market's picture

I own a Hyundai.

It has a diesel engine.

No kidding.

http://angrysinner.blogspot.kr/2013/03/yesterday-dragon-lady-served-burger.html

Sat, 03/02/2013 - 01:06 | 3292787 rotagen
rotagen's picture

Repeat after me:  American... Cars ... Are... Crap.

Fri, 03/01/2013 - 16:24 | 3291429 nightshiftsucks
nightshiftsucks's picture

Whoops

Fri, 03/01/2013 - 16:23 | 3291434 CharliePrince
CharliePrince's picture

are they storing all them in detroit

Fri, 03/01/2013 - 16:56 | 3291568 onelight
onelight's picture

Good question...if so they don't seem visible in this picture:

http://ninetymilesfromtyranny.blogspot.com/2013/03/your-country-on.html

Sat, 03/02/2013 - 12:15 | 3293416 Freewheelin Franklin
Freewheelin Franklin's picture

Yeah. They are using them for temporary public housing.

Fri, 03/01/2013 - 16:24 | 3291439 Bunga Bunga
Bunga Bunga's picture

Don't worry, Yahoo employees will suck it in.

Fri, 03/01/2013 - 16:25 | 3291442 ParkAveFlasher
ParkAveFlasher's picture

Say, does anyone know if there is financing available for a brand new 2014 Cadillac Escalade?

Fri, 03/01/2013 - 16:35 | 3291477 azzhatter
azzhatter's picture

apparently a lot of inner city banks on south side of chicago. See a lot of escalades. See if you can finance the 22" too

Fri, 03/01/2013 - 16:40 | 3291494 ParkAveFlasher
ParkAveFlasher's picture

"The Cadillac Effect".

Fri, 03/01/2013 - 17:15 | 3291646 Divided States ...
Divided States of America's picture

Yeah well they know that car manufacturing plants in Detroit will be shuttered soon forever so thats why they are loading up 10 years of inventory over the past few months.

Sat, 03/02/2013 - 11:29 | 3293348 jerry_theking_lawler
jerry_theking_lawler's picture

dude, you don't finance them....you rent them.

Fri, 03/01/2013 - 16:26 | 3291446 irie1029
irie1029's picture

No big auto analyst but do fleet sales go through dealers?  I would not think so but ya never know.

Fri, 03/01/2013 - 16:33 | 3291456 ParkAveFlasher
ParkAveFlasher's picture

Good question.  I wonder how much of this inventory will become perpetual rotating in-and-out of government cars on lease agreements, closing off / completing the Gordian Knot / Mobius Strip of our American Economy. 

I notice that when all this stuffing started the NYC DEP (Dept. of Environmental Protection aka the Garbage Men) started sending their foremen and checkers out in brand new GM hybrids.  These hybrids, for a couple of years now, never seem to look dirty or old or beaten - which is a logical impossibility for any car over four seasons in the five boroughs, much less one left out in the elements at municipal parking sites.

Fri, 03/01/2013 - 16:41 | 3291502 AlaricBalth
AlaricBalth's picture

Speaking of hybrids. The federal governments green vehicle of choice is...the Hyundai Sonata. 

"The Korean-made hybrid version of the Hyundai Sonata unseated Ford Motor Co. (F)’s Fusion hybrid as the top-selling alternative-technology vehicle purchased for the federal fleet. U.S. hybrid purchases in previous years were made almost exclusively from domestic automakers."

http://www.bloomberg.com/news/2013-01-09/obama-green-fleet-shows-ford-lo...

Fri, 03/01/2013 - 16:44 | 3291519 ParkAveFlasher
ParkAveFlasher's picture

I believe that's what they call a "international aid package".

Fri, 03/01/2013 - 16:58 | 3291577 onelight
onelight's picture

Ford did not need or want a bailout so somebody else got the sugar contract...

Fri, 03/01/2013 - 17:12 | 3291633 glenlloyd
glenlloyd's picture

Indirectly Ford did get a bailout since many of the GM suppliers are also Ford suppliers. If GM wouldn't have gotten bailed out then those suppliers would have gone bust and Ford would have gone bust....so in a very backdoor way they did get bailed out.

Fri, 03/01/2013 - 23:03 | 3292477 tarsubil
tarsubil's picture

Have you noticed the bigger shittier looking postal service trucks? Do you know where they came from? Do you know why the postal service decided to get bigger less fuel efficient Ford SUVs for their fleet? No big corporation today is clean. They all pay to play.

Fri, 03/01/2013 - 18:18 | 3291838 max2205
max2205's picture

Who in the fuck buys US cars anyway....oh wait

Fri, 03/01/2013 - 22:19 | 3292390 Common_Cents22
Common_Cents22's picture

there are reports of cities sitting on many many unused new GM cars.  Fed govt gives all kinds of money to local state agencies thru various means.

Fri, 03/01/2013 - 16:36 | 3291479 azzhatter
azzhatter's picture

Yes, dealers get a prep and handling fee on fleet cars.

Fri, 03/01/2013 - 19:17 | 3292005 Cleveland Steamer
Cleveland Steamer's picture

The company I work for has appx 2,000 fleet cars at any given time. They all go through dealers.

Fri, 03/01/2013 - 16:28 | 3291451 docinthehouse
docinthehouse's picture

See the USA in your Sequester, eh?....da dah dah dah dee dum dee dee dee dah....

Where's Miss Shore when ya need her!

Fri, 03/01/2013 - 16:30 | 3291454 mdtrader
mdtrader's picture

Cash for clunkers V 2.0.

Fri, 03/01/2013 - 16:32 | 3291463 Fix-ItSilly
Fix-ItSilly's picture

Poor Article.  More important to understand Days Sales Outstanding (DSOs).  GM's YOY sales have increased - so the absolute level of what's in the channel must adjust.

Fri, 03/01/2013 - 17:15 | 3291645 glenlloyd
glenlloyd's picture

So you're trying to suggest that what we see above isn't really happening? I'm not sure I buy your argument on that although I recognize the issue of DSO.

Fri, 03/01/2013 - 23:08 | 3292485 tarsubil
tarsubil's picture

Who was the guy that always came on to defend GM? Are you his new account? This trend keeps going up and we're very likely headed into a recession with zero growth in 2012 Q4 and higher taxes and fucked up government spending in 2013 Q1. How in the fuck is GM going to be able to move all these cars? This is exactly like 2006-2008 with the 0% financing shit. It is all going to blow up. Just wake up. Stop living in fucking denial man.

Fri, 03/01/2013 - 16:32 | 3291464 orangegeek
orangegeek's picture

GM puts anyone?

Fri, 03/01/2013 - 16:41 | 3291498 Mark123
Mark123's picture

GM salesmen are waiting outside DHS prisons for the illegals to be released (due to severe budget cuts)....so they can drive away in a BRAND NEW CAR!  (Financing provided by taxpayers)

 

Dealers have also included GPS on these models pre-programmed with location of bank where they can get a mortgage to buy a BRAND NEW HOUSE!!  (Mortgage guaranteed by taxpayers)

 

This recovery has legs gentlemen!

Fri, 03/01/2013 - 18:11 | 3291819 Boozer
Boozer's picture

Should they be denied the mortgage they could then just rob the bank.  Bullish!

Fri, 03/01/2013 - 18:20 | 3291845 negative rates
negative rates's picture

Legs but no traction.

Fri, 03/01/2013 - 16:41 | 3291505 Atlantis Consigliore
Atlantis Consigliore's picture

gm to inrease volt 20%;  make Post office use em for deliveries, or breakwalls & moats in Detroit. or Chicago. 

Keep in the slaves, low information voters, and sheeple. 

Fri, 03/01/2013 - 17:11 | 3291630 Oldwood
Oldwood's picture

Low Information Voter's Entitlement.....LIVE!

Fri, 03/01/2013 - 16:58 | 3291572 NoWayJose
NoWayJose's picture

All I know is that last fall the dealer lots seemed sparse, and now the cars are lined up and crowded. Someone is optimistic.

Fri, 03/01/2013 - 17:06 | 3291606 pasttense
pasttense's picture

Huh?

This is a good thing. It means buyers will have a bigger selection when they go to their local dealer.

Fri, 03/01/2013 - 17:10 | 3291624 Oldwood
Oldwood's picture

I am rapidly being forced to recognize my addiction to the beating of dead horses. I need to find a more productive hobby.

Fri, 03/01/2013 - 17:12 | 3291635 jsmfr
jsmfr's picture

This is a useless chart.  Without comparing inventories to sales, the inventory numbers themselves exist in a vacuum and are of no analytical use whatsoever.  And, beginning the chart at the depths of sales rates rather than encompassing a number of cycles makes it an even more misleading chart. You do yourselves a disservice when you twist and/or omit data in order to support your view (even if the view is an accurate one).

Fri, 03/01/2013 - 17:52 | 3291768 ebworthen
ebworthen's picture

If they sold the cars, they wouldn't be in a month-end inventory.

The chart shows an increasing number of cars in inventory at month's end, meaning they didn't sell.

If they were selling the same # as they were getting the chart would be flat.

If they were selling more than they were getting, the chart would be declining.

Sat, 03/02/2013 - 11:34 | 3293355 jerry_theking_lawler
jerry_theking_lawler's picture

even though you don't have the entire 'picture', you still have about 1/3 of the pixels and should be able to make out what the image really is.....

channel stuffing (ie. increase in inventory) shows one thing, production > sales.

please go back to you business school (genious) and tell me what that means?? you are doing us all a disservice by opening you trap without understanding 'business'......

Fri, 03/01/2013 - 17:26 | 3291692 Piranhanoia
Piranhanoia's picture

Are they taking offers at a 80% discount yet?  

Fri, 03/01/2013 - 17:35 | 3291727 Professor Fate
Professor Fate's picture

Dying for a new Ram 1500 R/T but I'm waiting for the $7,500 rebates to hit.  Need a new "bug out" car. 

Fate the Magnificent
"Push the Button, Max" 

Fri, 03/01/2013 - 18:17 | 3291835 Piranhanoia
Piranhanoia's picture

+1 for the Hannibal 8

Fri, 03/01/2013 - 22:44 | 3292443 Professor Fate
Professor Fate's picture

Saw the Hannibal 8 for sale not long ago at Volo Cars along with the torpedo.  $300,000.  I was just a bit short.

Fate the Magnificent

"Push the Button, Max"

Fri, 03/01/2013 - 17:46 | 3291751 Falconsixone
Falconsixone's picture

The gov. alphabet blobs of shit will need new cars....oooo look at the sales! People are buying more autos ...... economies on the strong fast recovery road... Better get one before they're gone!

Fri, 03/01/2013 - 17:48 | 3291755 Wile-E-Coyote
Wile-E-Coyote's picture

I hope those GM volts are not stored too close together, friction causes fire, well that 's what the press release will say.

Fri, 03/01/2013 - 17:49 | 3291758 ebworthen
ebworthen's picture

Phil LeBlow on CNBC will deny it, claim that GM inventories are low because they are selling like hot cakes, and quality is at it's best ever.

Fri, 03/01/2013 - 18:20 | 3291822 Yen Cross
Yen Cross's picture

  I can't wait to see the new and improved Boeing Volt.  OOPs (That's cross branding) GM/ Chevy 787.  

   How's that for channel stuffing, aka "trade loading" ?

Fri, 03/01/2013 - 18:55 | 3291940 Wile-E-Coyote
Wile-E-Coyote's picture

Ah yes the Dreamliner Volt, why didn't we make the connection. Every purchase comes with a free fire extinguisher.

Sat, 03/02/2013 - 00:10 | 3292684 Cardinal Fang
Cardinal Fang's picture

We were joking at work about Boeing replacing the batteries in the 787 with Chevy Volts. If the batteries started overheating, the crew would push a switch, pop a hatch and the volt would eject out the side of the plane.

Of course, then we said there would have to be a parachute and siren to warn people on the ground. Sorta like a Stuka attack.

Fri, 03/01/2013 - 19:14 | 3291989 Fix It Again Timmy
Fix It Again Timmy's picture

Building up the inventory for "Obama Cars"...

Fri, 03/01/2013 - 19:24 | 3292030 Smegley Wanxalot
Smegley Wanxalot's picture

It isn't just GM.  Ford dealers look overstuffed, and Chrysler/Toyota/Honda/Nissan/BMW/VW also.

Plus when I go to department stores the racks are overloaded with non-essentials. People are buying food, but cutting down on routine crap and making what they have last longer. Not a bad thing, all in all, unless you are hyper-dependent on frivolous consumerism for a living.

Fri, 03/01/2013 - 19:25 | 3292034 q99x2
q99x2's picture

I know I can buy a car with a student loan but I want a house.

Fri, 03/01/2013 - 19:53 | 3292110 Zgangsta
Zgangsta's picture

I like "the collapse is neigh!" articles as much as the next Zero Hedger, but as sales increase, isn't it natural that inventory also increase in order to keep up with expected demand?

Sales increased 7%, while the inventory went up only one percent, so expected length of time that inventory would remain unsold is actually dropping.

Fri, 03/01/2013 - 20:55 | 3292219 BullyBearish
BullyBearish's picture

From my local radio station, "Eric, with a credit score of 500 just drove a beautiful new Chevy Malibu off the lot!  Come on down, credit is NOT a problem!"

Sat, 03/02/2013 - 03:35 | 3292955 Atomizer
Atomizer's picture

That is awesome. Just wait until the headlights go out. You'll have to remove the front bumper to replace a $10 bulb. This happened to someone I know. Government Motors strikes again.

Fri, 03/01/2013 - 21:55 | 3292337 Jim B
Jim B's picture

I want my ObamaCar! 

Sat, 03/02/2013 - 00:00 | 3292655 Gamma735
Gamma735's picture

I own my Dodge Ram, fully paid for and bought before the 2008 crisis. I am driving it until the wheels fall off.

Sat, 03/02/2013 - 03:24 | 3292943 Atomizer
Atomizer's picture

In America, we channel stuff automobiles. In China, they channel stuff empty buildings. Central Planners think we haven't figured out the GDP Bullshit game.

Sat, 03/02/2013 - 03:57 | 3292969 dunce
dunce's picture

There are GM ads on my home page for crew cab 1/2 ton pick ups discounted over $7,000. That tells me that they are pushing hard to get sales up. No one else comes close to that size discount. I am not tempted.

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