GM Channel Stuffing Second Highest Ever In January

Tyler Durden's picture

We touched upon the disappointing GM car sales number reported earlier, which were promptly blamed on snow in the winter in some part of the country, which supposedly also meant that California's ravenous car buyers didn't purchase vehicles due to drought or something. Either way, one thing is clear: there was a big drop in auto demand which was to be expected from an overextended consumer whose plight we have been following for years. However, where GM did surprise, is that despite its apparent realization of climatic conditions, the company decided to plough through with abnormal production levels and flooded its dealer network with inventory. So much inventory, in fact, that in January, GM's channel stuffing pipeline rose by another 42K cars (a quarter of total sales in January), increasing the stock of cars parked at dealer lots and collecting dust to 780K from 748K in December, the second highest ever!


Shown otherwise, post-reorg GM had a record 114 days supply in inventory, compared to "only" 81 at the end of the year.

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SpeakerFTD's picture

Not sure which company, but someone has started leasing parking at Belmont Racetrack.   The rear area of their massive and wildly underutilized parking lot has been filling up with new cars rolling in on trailers.

Big Corked Boots's picture

My local Chevy dealer has a cornfield 1/4 full of new trucks. They are parked In. The. Mud.

Yancey Ward's picture

It is a well-known fact that most California car buyers travel by boat to the dealership, so it is perfectly reasonable to blame the drought for poor car sales.

nightshiftsucks's picture

It's possible,we got 1/2 inch of rain yesterday.

Rising Sun's picture

Get out your fucking POMO book Barry - it's time to buy cars now - you ok with that Barry you fucking prick???

rsnoble's picture

Dell is soon to have a big empty parking lot they could use.

Save_America1st's picture

they may end up doing another cash for clunkers bullshit deal again.  That whole scam was not only to fluf up the car sales numbers, but also look at it this way...they used it to get people into the new cars that have tracking devices built into them.  Whereas the older vehicles do not.  And then they destroyed all the old vehicles making it harder to get parts for them too.

They'll do it again, I'm sure.  More shit credit deals backed by the tax payers, but more trackable cars that they can use their surveillance on more easily. 

I have an old Ford Explorer from 97 and an old Jeep Grand Wagoneer from 88.  I'm never going to own a new vehicle with all that computer and tracking bullshit on it.  Or if I ever do, that shit is going to be ripped out and crushed up. 

Just like that bullshit from, eh hem..."Progressive" car insurance...trying to get people to willfully plug that fucking tracking shit into their car so that they can get a "discount".  What a bunch of bullshit.  Nothing but slave training to condition the sheeple into voluntarily being tracked.  And then they're going to use that shit against us to tax us for our mileage!!! 

fuck that shit, man...

and if they want my guns:  Molon Labe, bitchez...

nightshiftsucks's picture

But who's going to buy all of those high grade treasuries to finance it ? Looks like QE to the moon.

rsnoble's picture

Goddamn why can't someone hurry up and fucking nuke DC and do the world a favor?

walküre's picture

God forbid they would ever think of giving one vehicle per family in America just to get things rolling again. No, instead they replace 2 yr old, low mileage government vehicles which are paid above sticker and sell the used vehicles to those lucky few who can still afford to buy barely used cars and trucks. Government deserves to ride in style and in new vehicles paid for by you, me and everyone else who is NOT driving a new car or truck. Driving around and oppressing us on top of it. Nice gig for them!

Don't you see what is happening? There are two classes of Americans

- the wealthy

- government employees

All of the rest just getting by and surviving so that aforementioned groups can run their parasitic scams.

Underground economy is where it's at. Until the beast is dead anyway.

JR's picture

General Motors is a post office that makes cars.

Insideher Trading wrote recently on ZH;

#1 The entire market for vehicles has been manipulated by the government at the detriment to competitors (and by extension consumers)

#2 The market for GM cars is existent only because of tax payers subsidizing a product they wouldn't purchase to begin with. 

#3 The tax payer gets further into debt

#4 The beneficiaries are the friends of the politicians.

“This is not only detrimental to society as a whole, but it is also the antithesis of what America was founded upon, and what the American revolution was fought over… fascism is pretty sweet when you're wired into the political establishment.”

Justin Raimondo has a trail blazing article just out on Obama’s Information Czar and NSA operative, Cass Sunstein. It is Cass Sunstein's job to oversee the “information quality” of not only America’s Five Year Economic Plans but the NSA Surveillance Plans of Obama’s collective system, i.e., like Stalin’s operatives, to provide the official lie.

How to Spot a Paranoid Government Bureaucrat  | Justin Raimondo | Antiwar.Com

February 2, 2014

It begins:

Whatever else one might say about Cass Sunstein, he surely knows who his enemies are. The former head of the White House Office of Information and Regulatory Affairs and member of the President’s panel on NSA "reforms" – infamous for his suggestion that government agents should "cognitively infiltrate" alleged "conspiracy-minded" groups – is out with a new one, this time aimed at "paranoid libertarianism." Taking up where Princeton University historian and Clintonista Sean Wilentz left off, Sunstein avers:

"It can be found on the political right, in familiar objections to gun control, progressive taxation, environmental protection and health-care reform. It can also be found on the left, in familiar objections to religious displays at public institutions and to efforts to reduce the risk of terrorism." 

In short, any objection to the Obama administration’s agenda is indicative of "paranoia" on both sides of the political spectrum. While it would be tempting to write this off as mere partisan bombast, this isn’t the case with Sunstein, an ideologue whose faith in the beneficence of government action underlies all his public pronouncements. If government sees some benefit to state-sponsored displays of religiosity, well then what’s your problem? And as for the Surveillance State – it’s just a program to "reduce the risk of terrorism," and has absolutely nothing to do with industrial espionage, compiling dossiers on innocent Americans, and tapping Angela Merkel’s phone. …

Raimondo concludes:

By carrying on the discussion on the plane of High Theory, Sunstein avoids talking about specifics that contradict his thesis: but for those of us not ensconced in the ivory tower of a Harvard professor this simply will not do. In reality, it has been shown that the justification for the National Security Agency’s data dragnet – that it has supposedly stopped several major terrorist plots in the past – is simply untrue.

http://original.antiwar.com/justin/2014/02/02/how-to-spot-a-paranoid-government-bureaucrat/

ptoemmes's picture

Even the cheer leading optimists in the middle of it all are starting to push back: http://www.autonews.com/article/20140114/OEM09/140119792/autonations-jac...

 

"

DETROIT -- AutoNation Inc. CEO Mike Jackson is warning manufacturers to slow production in 2014.

Jackson said the auto industry is unlikely to grow in 2014 at the same rate it has been growing in the past few years. That means inventory levels must be contained to avoid heavy incentive programs.

"2014 is going to be a test, the first real test after four easy years of a million units of growth," said Jackson during a speech here at the Automotive News World Congress today. "It will test do we really have the discipline to run this business in a rational way for the long term? It's the beginning of a test."

"

I still think he's too optimistic, but never underestimate the power of subprime, until it goes poof.

riphowardkatz's picture

cash for clunkers part 2 coming soon

rsnoble's picture

Next Years IRS checkbox questions:

*Do you own a car that was purchased no later than 2013?

  Yes________   No__________

  Did you pay in cash? _____Yes  _____NO

    If no, how much is your monthly payment(s)  $___________

*Does your disposable income allow for an additional car payment?

  Yes_________  No__________

  If not, are you currently working at least 60hrs per week?

  Yes___________ No__________

*Do you have disposable assets, including cars that are paid off

  bought prior to 2013 that can either be sold or traded for a new car

  this year?

  Yes__________ No__________

*Would you be willing to cosign a car loan for an unknown person in    exhcange for a FREE 10 DAY late filing extension with no penalties if the amount you owe is paid in full by the end of the extension?

  Yes__________ No__________

*Will you keep full coverage insurance on all vehicles that are fully paid off so that you may use the funds as a downpayment on a new car if you have an accident AND not to sign up for any payment plan at least 72 months long?

  Yes________ No____________

*Would you be willing to make a generous contribution to the laid off autoworkers fund which can either be in the form of cash or a new car with at least 72 monthly payments that will be donated at a 75% tax rate to any auto worker that doesn't receive at least 90% of their wage while sitting at home?

 Yes________ No___________