GM Halts Sales Of Chevy Cruze; Gives No Reason

Tyler Durden's picture

And the hits just keep on coming for new CEO Mary Barra. By now she must be suspecting Dan Akerson threw her under the bus as he left the sinking ship. On the heels of all-time record high inventories (over-built amid a frenzy of mal-investment last year), massive recalls (amid ignition switch problems linked to 12 deaths), and potential bankruptcy fraud, GM announced today that it has instructed dealers to stop selling 2013 and 2014 Chevrolet Cruzes but gave no reason for the halt.

 

Reuters confirms,

"I can just confirm that we put a stop-sale in last night," GM spokesman Alan Adler said.

 

He said he did not have any details on why the action was being taken, but said stop-sale orders can happen for various reasons. He said stop-sale orders mean the dealers need to do something to the vehicle before it can be sold.

Via WSJ,

Chevrolet dealers received a stop-delivery via email Thursday advising them to halt sales of Cruze models with 1.4-turbo engines, according to a copy of the notice viewed by The Wall Street Journal. A reason for the notice wasn't provided.

 

"This is something we don't see every day," said one dealer who asked not to be identified since he shared the internal document. "To not be given a reason must mean GM has spotted an issue and is still trying to get its arms around it."

 

A GM spokesman confirmed a notice was sent late Thursday but declined to provide details. Automotive News reported the stop-delivery order earlier Friday. The notice affects only 1.4 Liter turbo charge Cruze.

 

The number of vehicles impacted could be relatively small since the notice only covers 60 days worth of production.

If we build it (and stack them high on dealer lots) they won't come if they fear spontaneous combustion...


 

GM Chief Executive Mary Barra is scheduled to testify to both chambers of Congress next week as members of the House and Senate seek to learn how the problem did not result in a recall earlier despite being first noted within the company in 2001.

Bring your popcorn...

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OldPhart's picture

I wlll never buy anything from Government Motors...ever.

NotApplicable's picture

In other news, GM now has a scape-goat to defend record-high channel-stuffing.

666's picture

I can give you a reason for the stop sell order: the Cruze sucks.

tarsubil's picture

They are trying to build inventories for the Christmas blitz.

Town Crier's picture

Union thugs, also known as welfare queens.

Agstacker's picture

My first job was bagging groceries in a supermarket.  It was required to join the union and pay dues, even tho the only position that wasn't guaranteed raises and other union benefits was...the bagger.  I've had no interest in joining a union since.

666's picture

My first job at the ripe old age of 16 was at Bradlees making $1.60/hr. After 30 days, I had to join the union and was given a raise to $2.00/hr. After deducting union dues, my real wage before taxes dropped to $1.50/hr. What a great deal for us workers! And of course the union did nothing to help me when I was fired for refusing to do a dangerous task without being issued canvas work gloves, a task I did once previously for them and ended up all cut up and bleeding.

NidStyles's picture

Statists only want you if they can con you into doing their dirty work for them.

 

mjcOH1's picture

""To not be given a reason must mean GM has spotted an issue and is still trying to get its arms around it.""

 

There was money being made.   The new union owners (Thanks Obama!) became confused by this and ordered a work stopage.  Problem solved.

SilverIsKing's picture

How would you feel now if you already owned one?  Not really in the mood for a weekend drive, huh?

I don't and would never own a GM car or truck.

McMolotov's picture

Dropping the 'i' and replacing the 's' with a 'z' doesn't make a car sound cool, it just makes the person who named it sound like a fucking moron who can't spell.

TahoeBilly2012's picture

See any Avalanches on the road anymore? Chevy is the undisputed king of "trailer park style", gawd help us.

y3maxx's picture

...Will need a "fall guy" for NSA, Obamacare, GM Bankruptcy #2, Student Loan Bubble, Syria, Russia. ..."The Buck stops here"... goodbye, so long, farewell....Comrade Obamao.....Soon to be known as
"the Fall Guy in Chief"

Midas's picture

I always figured the spelling was to appeal to our new hispanic citizens, residents, undocumented workers, pre-legalized friends.  I guess GM learned from the No Va.

Deathrips's picture

New Slogan.

 

The Chevy CURSE. The moneypit of planned obsolescence.

 

RIPS

Silver Bully's picture

'I can give you a reason for the stop sell order: the Cruze sucks.'

I wonder if this is also related to the ignition recall. GM has been using this same freaking ignition switch on multiple models since they slapped it on the Saturn Ion back in 2003. It's currently on the Chevy Cobalt, which started the whole ignition switch recall to begin with. now this with the Cruz. makes me wonder what other vehicles of theirs are having starter issues.

TruthInSunshine's picture

"...makes me wonder what other vehicles of theirs are having starter issues.."

It's more of a stopping and/or not crashing into things/other cars/buildings/trees/etc. issue, but yeah...

KickIce's picture

The Janet Yellin of the auto industry.

de3de8's picture

But it's Chevy truck month

Boxed Merlot's picture

Chevy truck month...

 

That's only during baseball season.  Well, until football starts.  And then there's March Madness.  Oh wait, no, that's Toyotathon.

 

 

The_Ungrateful_Yid's picture

I used to be a chevy guy, no longer EVER again.. Now I'm loving my F150 and a 5.0 Mustang GT that is really fast and handles well now that I have spent a few dollars in the suspension. I love corvettes, but it's still a chevy.

NidStyles's picture

The 20 year old Honda Civic I have outside still starts everytime and gets great gas mileage. It was also only a $2k car and I own it outright. I can not complain with it, as it has never failed me. 

Dollarmedes's picture

I hope this means we Americans get a "do-over" on the GM bailout.

Oh regional Indian's picture

Low to nil, I'd say. Conservatively speaking that is. 

 

BandGap's picture

Th Chevy Aveo, the fucking Edsel of this generation.

The Aveo is easily the biggest piece of shit car since the Pinto.

BandGap's picture

I bought  '74 Vega for $50 in 1984. Loaded all my shit into it and went to graduate school. Never drove it agian, signed it over to a friend a year later who drove it into the ground at around 90K miles..

Yes, an original aluminum block engine. Only two of the fur cylinders held compression whe I got it, hence the sale price. It was such a piece of shit people wanted it because of that aluminum block and the doors (?). Nostalgia doesn't have to make sense.

Chevy disaster.

 

caShOnlY's picture

When your a shit corporation with a shit union in tow, u make shit.   The only thing keeping this hulking sorry sack of shit mixed with crushed assholes alive is our 30 billion "gift" of taxdollars.

do you really believe free markets exist? just look at GM to get your answer.

Blood Spattered Banner's picture

^ This.  They made shitty cars for decades, and deserved to go out of business, not get bailed out.

What is lost on most people is that if GM would have been left to die, several better car manufacturers would have surfaced. 

 

V in PA's picture

What about the UAW? Have you no heart sir?

NidStyles's picture

Nothing but a bunch of violent over-paid uneducated statists. 

Bangin7GramRocks's picture

I agree. They should have gone out of business. But the same applies to every big bank and investment bank in this country. They all did shitty banking for a decade and deserved to die. But they were all saved too and it cost exponentially more to the American taxpayer. This entire country is bankrupt. Stop pointing fingers at isolated broke dick companies.

pods's picture

Well there are many leaks in the dike, so we might need them.

pods

 

laomei's picture

Yes, GM makes garbage and deserves to go under, but they were bailed out not because of the UAW, rather it was due to all the parts manufacturers and supporting infrastructure.  It was a systemic issue, not in any way isolated.  Letting GM die would have knocked out suppliers which would have resulted in Ford and others dying as well, basically, the entire sector would have gone under.  Over a million jobs vaporized is what would have been the end result.  The lesson learned from this crap is to be systemic as possible and ensure that your failure guarantees the failure of far more than you alone.  With this leverage, you are too big to fail and the government will bend over backwards to throw free money at you.

 

Realistically speaking, better car manufacturers already exist, they'd simply just eat the market share, primarily Japanese, Korean and German. 

Blood Spattered Banner's picture

While I don't disagree that the auto parts/servicing sector was the underlying cause for keeping GM afloat, where I disagree is that they too couldn't have rebounded.  The entire US auto industry wouldn't have went under.  In capitalistic societies failure is part of the game, but in an actual free market (which we sure as shit don't have), businesses rise from the ashes leaner, smarter and stronger.  I certainly would have stung in the short-term, no doubt. 

TuPhat's picture

Blood is right.  A lot of GM parts (including engines etc.) are purchased from japanese, Korean, and chinese companies.  Delco Remy, the premium GM parts company was sold to the Japs several decades ago.  Parts suppliers would have only lost the money GM owed them and then they would have continued to sell parts to car makers that are doing a better job.  We would have all been a little better off including the UAW workers.  I know GM engineers whose job is to decide wether japanese or chinese parts are better.

BigJim's picture

 Yes, GM makes garbage and deserves to go under, but they were bailed out not because of the UAW, rather it was due to all the parts manufacturers and supporting infrastructure.  It was a systemic issue, not in any way isolated.  Letting GM die would have knocked out suppliers which would have resulted in Ford and others dying as well, basically, the entire sector would have gone under. 

I've heard this argument that the bailout was to save all the smaller, independent parts manufacturers. The implied corollary to this 'reasoning' is that if those parts had been manufactured by GM in house, then it would have been ok to let GM fail? Despite the fact that the number of people being laid off in toto would have been the same?

Suppliers reliant on GM orders may have gone under - but you appear to forget Bastiat's chief lesson regarding government spending - that which is unseen.

First, when the government bailed out GM, that capital had to come from somewhere, thus reducing the buying power of everyone it was taken from. So the government 'saved' GM at the expense of other, more efficient manufacturers, of vehicles and everything else. Second, with GM no longer supplying vehicles, demand would have meant more orders for the other manufacturers, in turn creating demand from those shops/employees who had been supplying GM.

Saving GM reduced the citizenry's buying power. It made everyone not immediately downstream of the bailout poorer.

NidStyles's picture

Not everyone actually understands economics. This is something I am sure you have learned as well. 

chinoslims's picture

I would not even call that economics.  I would just call it common sense

OldPhart's picture

Goobermint also set up the Cash for Clunkers program.  Another offset to GM...and other car companies.  It encouraged morons to scrap their cars in exchange for a newly financed piece of shit car.

Trade ins distroyed...and the unseen cost was soaring prices for used cars.  Those that couldn't afford a new car to begin with couldn't afford the used one now. 

SilverIsKing's picture

I think I figured out the problem.  There's a moron in the engine.

Larry Dallas's picture

Reason #245 why I will never buy a "Murican car.

 

Scoobywan's picture

I've only driven GM since I was 16

'85 Regal

'68 Impala

'79 Camaro (Still have this, but doesn't see the road except on pristine days)

'95 S-10

'02 Blazer (Only one I bought new)

 

All bought before Government Motors was formed from General Motors.

 

Still drive the Blazer, it's old, shows its age, and is being replaced in 4 weeks...with a Toyota Tacoma.

Not because I'm tried of GM, but Toyota is a better product.

 

GM did me just fine over the last 20 years

 

 

 

 

BigJim's picture

Well, I calculate that on average each GM car lasted you 4 years. You might think that's 'fine' but I personally would prefer spending the money on a vehicle which will last a whole lot longer.

NidStyles's picture

Even a used car that needs a little work would be better if it was from a reputable company and good on gas.

I would never waste money on a GM product, as I know it's going to break down and I prefer to have my money in my pocket.