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GM Vehicle Sales Collapse 11%
Just a month ago, we were exuberantly told that the 14.7% rise in August sales for GM (against an expectation of an 11% rise) was not just great news but was entirely sustainable. Some suggested that this was merely demand dragged forward as rates rose, dealers channels were stuffed, and the vinegar strokes of an exuberant Fed were occurring. Today we have our answer...
- *GM U.S. SEPT. VEHICLE SALES FALL 11%, EST. DOWN 4.2%
- Inventory up to 82 days from 64 days!! (Surge to 670,191 units from 628,644 prior)
We are sure that weather played a role; the calendar didn't help; government (Republicans) are probably at fault somehow; and it's a 'blip' but it seems like quite a miss for a "sustainable" new normal in auto sales.
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With the government shutdown, who will buy GM cars?
it's ok. liberals will blame republicans next month when employment numbers stink...."SEE!? republicans dont want people to have jobs...or healthcare"
i literally will not be surprised when BRAWNDO is marketed on obamacare websites.
It's got what plants crave.
It's got electrolytes.
C'mon, Tylers
The headline is misleading, an 11% pullback is not a collapse by any stretch.
I'm very supportive of ZH and its efforts, however titles to articles like this breed the notion of doom and gloom.
DaddyO
WE need lower interest rates NOW.
oh wait.
DaddyO, how could you possibly complain about an article that describes the Fed's actions as "vinegar strokes?"
I LOLed.
I wasn't complaining about the article, just the title and its broadcasting that 11% pullback represented a collapse.
Who gives a rip about gov't motors anyway?
Now if the headline had been about an 11% pullback in PM's, I would have been up on my high horse!;>)
DaddyO
ObaMobiles for everyone, just like on Oprah.
You get a new car! You get a new car! You get a new car!
But DaddyO, the entire system is built on continuous, infinite growth (in a finite world of course). 11% will take a bit to correct.
Margin Compression Bitchez!
>> liberals will blame republicans next month
Yeah, imagine that, playing the old red/blue card. Good thing nobody around here pulls that one,.
82 days of inventory... that is just about 1 quarters of vehicles sitting there gather dust and beginning to rust. Maybe negative interest rates on car loans will move this inventory. Wait, the goberment will bail this out again for a larger loss.
IT is also during the "New Model Year" Rollout month... September.
Tire will get permane flat spots, seals will dry out in the top end and etc. I suspect the unions insist that the companies keep manufacturing cars that people can't afford so the union dues that pay the union big wigs will keep coming in. After all can't the Fed keep printing money and sending some to GM for wages??
Need to restart the Cash for Clunkers program. Clunkers being any car manufactured before 2013.
I've noticed this year how all domestic dealer lots are absolutely stuffed with cars. And as mentioned dealers are now getting '14 model cars... which will make moving all those '13s lots of fun.
On the bright side I can only assume with so much inventory that deals are a'plenty...
Especially for those 8 year loans. /sarc
The FED
How is it that GM is reporting numbers during the government shut down? I'm so confused.
I wish someone would look into that...Every government agency from local, state and federal buys nothing but GM and Dodge now. Something is going on with that and it is obvious. I know of one little shit stain police department that recieved three dodge chargers. Found out it was through some government grant and that the department could only put so many miles a day on the vehicles. After the miles were reached for that day they would have to start driving the run down shit cars.
But then the FT has this headline
Busy GM factories showcase US car boomWTF? Is everything just propaganda now?
http://www.ft.com/intl/cms/s/0/5129c82c-277f-11e3-8feb-00144feab7de.html...More of General Motors’ North American factories are working at full capacity than at any time in recent history, in the latest sign of how resurgent demand and plant closures have transformed the US car industry.
The sharp increase in productivity underscores the revival of the Detroit Three carmakers – GM, Ford and Chrysler – in the wake of 2009’s sweeping industry restructuring. GM and Chrysler underwent government-led bankruptcies as part of the overhaul, while Ford closed several plants and renegotiated many contracts.
If you have to ask whether it's all propaganda, there's a good chance it's all propaganda.
If there were a chart for lying, it would be going exponential.
https://www.techdirt.com/articles/20130715/11210223804/anti-propaganda-b...
And isn't Chrysler Italian?
What about super Tesla? Did they sell another 5 cars? Up 25% from 4 cars?
OT but hilarious: http://www.bloomberg.com/news/2013-09-30/bank-secrets-exposed-in-eu-s-credit-derivatives-antitrust-probe.html
Note how quickly they concluded that the fault was with the humble IT workers (consultants?) instead of the lawyers and managers responsible for the documents.
No matter...Phil Lebeau to the rescue. Way to go COMCAST! Nice job buying an entirely bankrupt network...and do nothing to address the problem. I'm sure your shareholders are thrilled by your utter lack of action.
TSLA will pick up the slack. Bullish.
It is simply how NOT to get Cyprused.. They can only take whats available at the time.
Don't worry, Gen Y will get jobs lucrative enough to pay their student loans and buy a house and car to boot any day now...
>_>
<_<
>_>
Don't forget my SS, MC, WIC and food stamps.
Is this month over month (I suspect it is) or year over year? If it is year over year, it's more significant.
If they got out of the physical car game and transitioned into a more robust paper market of car futures and car options then all these inventory issues would go away and they could manage the sales and price any way they wanted.
LOL! And BTW, please delete your comment before Mythe Blasters reads it.
Fix that the Obamacare way. Require people to buy a GM car or face a tax... eh it worked with health insurance, why not GM cars? It's the same principle and SCOTUS said it was constitutional!
The day they pass that law is the day I drive my Toyota onto the White House lawn, douse it in gasoline, and toss a lit cigarette on it.
>> douse it in gasoline, and toss a lit cigarette on it.
What good would that do, Captainobvious? A lit cigarette won't ignite gasoline.
It does in the movies--in fact it causes (always) a real cool explosion.
thats true and also funny to me, when i was 16 working for 1.65 an hour, at our local gas and repair shop, my crazy boss and not crazy for this...would throw his cigs in a bucket with gas in it......never went up...now today i cant put gas in my can, in my truck "without" a bed liner cause the assholes know im going to blow the world up.....ah, the good times
See! Government shut down less than 12 hours and this is what happens. Reid will be on the tube with his beady eyes blaming Cruz and the Tea Party for collapsing car sales. This is what you get when "Harry the Fairy" doesn't get his way. I'm sure CNN and MSNBC are already on this story like stink on Obamacare.
Fate the Magnificent
"Push the Button, Max
Not to worry new rose colored glasses to be issued as part of the shut down along with rose colored forcasts that will be revised downward in a few months. Obama said so!
Maybe Obama can throw in a Government Motor in go go along with the EBT cards and Obama phone.
Ride a nice new GM car to use your EBT card while talking on your Obama phone. That's living the American good-life.
In the Mean time Bubbles Bernanke and the Federal Reserve use their printed money from thin air to pay for Middle eastern oil and Chinese goods.
In the hood they perfer Cadillac Escalades. How about Obama gas cards as well?
Never, never, never forget what Peggy Joseph said in 2008.
http://www.youtube.com/watch?v=P36x8rTb3jI
"I won't have to worry about putting gas in my car, I won't have to worry about paying my mortgage. You know, I know if I help him, he gon help me."
i blame bush
That's what the liberals tell me. It's Bush's fault. Anything good is because of Obama, anything negative is Bush's fault.
anything negative makes you a racist!
Who the in the heck buys Government Motors cars? Oh yeah, debtor sheep.
It's not just debtor sheep. Government motor pools and police departments buy a lot of that crap.
Seriously, does anybody buy GM cars anymore? My brother has had a Cadillac and a Buick in the last 5 years. both shit boxes, nothing but repairs. Water pump, transmission, starter etc. Sorry but these cars are crap. I, on the other hand have a Honda that is 6 years old, 146,000 miles and only oil changes and tires.
Seriously, does anybody buy GM cars anymore?
No, no way. My father called them "Garbage Motors".
Wouldn't buy any ObamaCar if a gun was held to my head.
Come to think of it the bailouts were a form of gun...and rape...
OK, now I'm pissed again!
See what y'all started!
Are these car dealers stupid? They need to be paving more parking lots so they can park more cars!! Then production can kick into high gear. Or give the cars away and just count them as sales the way the banks do. Free cars, charge the govt. for each car and Ben prints the taxpayer pays. What the fuck? Are they stupid?
They're just still stuck in the 'old economy' that required the creation of real things (even if they are pieces of shit). They haven't figured out how things work in the 21st century - an exciting world of financial transactions funded by complex loan structures hedged and then hedged again by complex derivatives, and then backstopped by the FED's infinite QE machine. If they can make the transition they'll be fine.
Well, I'm just trying to help because I'm very concerned that the CEO won't get a big enough bonus. That would be devestating.
Luckily most of them are near empty restaurants, strip malls and other retail stores with loads of excess parking space for rent.
The local bowling alley has never been more popular!
Oh, and the last time I was given a ride in a dealer courtesy van, the driver told me that they have a satellite lot for every primary lot in town (around half a dozen).
Well, that's good news. But they need to find more parking. maybe they can shoot some of these rattletrap pieces of shit they make into space and use them as sattelietes.
Who needs paved parking lots? These days GM is parking the overflow inventory on the lawn. Heck, you can see fields filled with cars 5 minutes before you get to the GM dealer.
A cash infusion from the FED should bring them around....or just build an artifical reef with those new GM cars.
Sounds like it might be a good time to be sniffing around for a new diesel truck.
Maybe Obama can start a new program called "Cash for GM Junkers" and get everyone to trade in last year's Chevy model for this year's.
Considering they are junk when they come off the line, why not every 6 months?
See, they're branding the product wrong. They confuse their prospects when they call the procuct a "car". maybe if they called it "crap" the customer would be able to be more informed as to what they are being ripped off on.
To be expected- September only had 30 days this year.
In any case, I thought I had noticed there were fewer new cars sitting along side the road waiting for tow trucks.
OT, but speaking of "sales collapse", PMs got smacked down in a NY-minute this morning.
Must be falling demand, in light of the Shutdowm. ;-)
How did they run out of subprime buyers so quickly? Are not there plenty of people living in the street that would rather live in a new car?
What, EBT card holders can't trade in their 2012 Yukon lease for a lease on the 2013 Yukons? Monthly payments only $850. I don't see what the problem is.
I will not use a student loan to buy a car.
I want a house.
So even with easy and cheap loans from the banks given to consumers with bad credit, they still post bad numbers. Imagine if rates were to rise...
just in time for thanksgiving, stuffing isn't just for turkey
What a minute, will the sheeple still get their Chevy Volt subsidies with the government closed? And what about Obama phones, will they go dead?
Righton, go 4 DAI, BMW, VW and ......
MOAR BAILOUTS!!!!!
Oh wait, Ben and Barry are out of the office today. LMFAO!!!!!
Paging Dr. Obama your needed to save Detroit....again.