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Following Latest Recall Shocker, GM Has Recalled 56% More Cars In 2014 Than It Sold In 2013

Tyler Durden's picture




 

They don't call them Government Motors for nothing.

Over the weekend we titled our summary of GM's unprecedented avalanche of recalls so far in 2014 - the year in which the company's criminal practice of covering up its faulty products became a congressional scandal -  as follows: "GM Set To Surpass Total Recall Record This Year." Three days later we are happy to report that while Detroit, we not only have a big recall problem, we also have a new record, after moments ago GM just announced another 4 recalls affecting 2.4 million cars.

This brings the total number of vehicle investigations since the start of the year to 35, and with today's four latest fiascos, has initiated a whopping 29 recalls. More importantly, this also means that the number of domestic recalls rises to 13.6 million, smashing the previous record of 11.8 million recalls in 2004, and brings the number of global recalls to 15.2 million: or a stunning 56% greater than the 9.7 million cars GM sold in all of 2013!

As was expected, as part of today's most recent recall, GM took yet another charge, this time for $200 million. But don't worry: hedge fund pandering sell-side analysts everywhere will be sure to addback these recurring "non-recurring" charges to EPS and all shall be well.

Here are the highlights from today's announcement:

In a continuing effort to quickly address emerging safety issues, General Motors announced today it is recalling about 2.42 million vehicles in four separate U.S. recalls. The recalls are for:

  • 1,339,355 Buick Enclave, Chevrolet Traverse, GMC Acadia full-size crossovers from the 2009-2014 model years and Saturn Outlooks from 2009-2010 because front safety lap belt cables can fatigue and separate over time. In a crash, a separated cable could increase the risk of injury to front seat passengers.
  • 1,075,102 of the previous generation 4-speed automatic transmission Chevrolet Malibu and from the 2004-2008 model years and Pontiac G6 from the 2005-2008 model years  because of a shift cable that could wear out over time, resulting in mismatches of the gear position indicated by the shift lever. 
  • 1,402 Cadillac Escalades and Escalade ESVs from the 2015 model year because an insufficiently heated plastic weld that attaches the passenger side air bag to the instrument panel assembly could result in a partial deployment of the air bag in the event of a crash.
  • 58 Chevrolet Silverado HD and GMC Sierra HD full-size pickups from the 2015 model year because retention clips attaching the generator fuse block to the vehicle body can become loose and lead to a potential fire.

GM has added 35 product investigators since the beginning of 2014, and, including those announced today, has initiated 29 safety and non-compliance recalls in the U.S. so far this year. Two of the recalls involve fewer than 100 vehicles.

 

* * *

 

GM stopped sale of the 2015 Escalade and Escalade ESV and sent overnight letters, called and emailed the 224 customers who had taken delivery of the vehicles and instructed them to not let occupants sit in the front passenger seat until the vehicle has been serviced. GM knows of no crashes or injuries associated with the Escalades.

 

* * *

 

GM expects to take a charge of up to approximately $400 million in the second quarter, primarily for the cost of recall-related repairs announced in the quarter. This amount includes a previously disclosed $200 million charge for the five recalls announced May 16.

Here is the full list of recalls announced just in 2014. Considering we are barely five months into the year, expect this to grow substantially by the end of the year.

 

And the chart that puts it all in context: the amount of recalls in the first five months of 2014 alone is more than 15 times greater than the total recalls announced in 2013, and is 70% greater than the total number of recalls announced in the prior five years combined!

Once upon a time, executives would lose their jobs for such an unprecedented, and ongoing fuck up not to mention criminal cover up. But this is the New Normal, in which this company only exists because of the government's blessing. And one certainly wouldn't want to imply that once the government gets involved in the private sector all hell breaks loose, now would one?

 

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Tue, 05/20/2014 - 11:50 | 4777696 NotApplicable
NotApplicable's picture

Perfect timing!

Hey Tyler, look at this, HuffPo is claiming they've debunked the recent "cars on lots" conspiracy story. Cuz they're still "selling" them, duh. LOL

http://www.huffingtonpost.co.uk/2014/05/19/unsold-cars-google-maps_n_535...

At least they didn't call ZH a low-brow, fringe blog.

 

Tue, 05/20/2014 - 11:56 | 4777717 knukles
knukles's picture

Good God, man!
On the verge, the cusp of heresy!
for what I have no idea, but that matters naught anymore, no?

 

PS  Take a look at the list above or older press articles of the recalls.  The Cruze has been listed in a number of recalls.  The Cruze platform is the one and same for the Volt.  The recalls are for front wheels falling off, ignition and such.  But Note No Volt Recalls

Shit shit shit shit shit shit

Tue, 05/20/2014 - 12:11 | 4777786 American Dreams
American Dreams's picture

None of this business of recalls matters.  GM will keep making more cars, paying union labor, channel stuffing its dealers, and finally parking said unsold cars until they rot from weather exposure.  Then send the undriveable vehicles to government approved and supported recyclers that will process the metals, plastic and rubber.  The recyclers then sends all the recycled materials back into the manufacturing cycle of government approved and supported automobile builders.  This continues until the energy and wages to produce the "auto" becomes to much of a burden on the host system, which, if looked at hard enough, may be never.  

American Dreams

AD

Tue, 05/20/2014 - 12:14 | 4777796 doomandbloom
doomandbloom's picture

BACKWARD!

Tue, 05/20/2014 - 12:20 | 4777825 StacksOnStacks
StacksOnStacks's picture

I've heard of Broken Windows but Broken Cars?  They just look desperate now.

Tue, 05/20/2014 - 13:43 | 4778097 economics9698
economics9698's picture

If it was Toyota this would be front page NYT’s.

Tue, 05/20/2014 - 12:35 | 4777862 rubiconsolutions
rubiconsolutions's picture

Automotive backwardation. Or bastardization.

Tue, 05/20/2014 - 12:43 | 4777885 onewayticket2
onewayticket2's picture

Now we know how they hit profit targets....

 

....when you have an implied backstop, why not take risk with crappy parts?  Barry's got your back.

Tue, 05/20/2014 - 12:15 | 4777797 TBT or not TBT
TBT or not TBT's picture

The UAW has done such wonderful things for our republic. Take Barack Obama, please.

Tue, 05/20/2014 - 12:17 | 4777804 rlouis
rlouis's picture

Thanks to non-GAAP accounting, none of this really matters.

Tue, 05/20/2014 - 12:19 | 4777815 max2205
max2205's picture

Feds can now rig the deatb numbers througg

 

Medicine

Drugs

Health care

Food

Auto safety

Air safety

Milk

FSA uprisings

Race card

Corp tax

Corp political contributions

Govt blackmail via spying

Market rig

Monopoly price fixing

Ect

Ect

Tue, 05/20/2014 - 12:32 | 4777854 thatthingcanfly
thatthingcanfly's picture

What's an "Ect?"

Why did you list two of them?

Tue, 05/20/2014 - 15:23 | 4778495 drendebe10
drendebe10's picture

Electroconvulstive therapy.... shock the brain of psychiatric patients...

Tue, 05/20/2014 - 19:55 | 4779317 mrpxsytin
mrpxsytin's picture

It is definitely not good. But I prefer .gov to be making millions of cars than having those factories pumping out millions of tanks, fighter jets, war vessels, etc. We know where that ends. Enjoy the car making phase while it lasts. 

Tue, 05/20/2014 - 12:13 | 4777791 Headbanger
Headbanger's picture

What about all the Toyota recalls last year?? 

Was that the largest in history?

Tue, 05/20/2014 - 12:20 | 4777817 TBT or not TBT
TBT or not TBT's picture

The MSM lets us know when non-UAW car makers have done wrong to us, and the federal regulators are extra attentive to outing their offenses.

Tue, 05/20/2014 - 12:03 | 4777761 thatthingcanfly
thatthingcanfly's picture

That huffpost arcicle was the lamest effort at debunking I've ever read. They made no counterpoints to the central argument, but rather just said that the photos were dated, spouted off a few "sales" numbers from the auto manufacturers, and concluded with a, "they wouldn't do that now, would they?" rhetorical device.

Unbelievable. Do these journalists not take ANY critical thinking or debate classes?

Tue, 05/20/2014 - 12:22 | 4777830 NotApplicable
NotApplicable's picture

That's what makes it all so sad/beautiful to watch.

All they know is character assasination and...

 

...never mind.

That's all they know.

(as that's all they need to know for their "enlightened" audience)

Tue, 05/20/2014 - 17:49 | 4777874 Froman
Froman's picture

...this was surprising coming from that beacon of journalistic integrity and paragon of objective reporting, with absolutely no agenda, we have come to know as huffpost.  

/sarc

Tue, 05/20/2014 - 12:41 | 4777879 Citxmech
Citxmech's picture

A grade above a C- in "Critical Thinking" probably gets you disqualified from being hired.

Tue, 05/20/2014 - 12:48 | 4777904 fallout11
fallout11's picture

Thetruthaboutcars.com has covered the huge lots of unsold, channel-stuffed vehicles as far back as 2005, with rather meticulous investigation and evidence. Nothing new here, only the scope and scale of the problem. 

Tue, 05/20/2014 - 13:38 | 4778070 NOTW777
NOTW777's picture

they are not "journalists"; they are advocates & idol worshippers

Tue, 05/20/2014 - 12:05 | 4777767 Son of Loki
Son of Loki's picture

"Hecho in Merika"

Tue, 05/20/2014 - 12:19 | 4777816 rlouis
rlouis's picture

too sa

Tue, 05/20/2014 - 12:23 | 4777832 yrbmegr
yrbmegr's picture

They let the air out of their own debunking story by admitting the photos are compelling and that other industries do the same thing.

Tue, 05/20/2014 - 15:21 | 4778489 drendebe10
drendebe10's picture

Additional proof that anything the gummint sticks its nose into turns into a big doodoo pile... wait til obamascare kicks in fully....  Phoenx VA style care for everyone...

Tue, 05/20/2014 - 11:47 | 4777697 knukles
knukles's picture

Obamamobiles & Pelosimobiles brought to you proudly by Government Motors

Tue, 05/20/2014 - 11:51 | 4777718 dontgoforit
dontgoforit's picture

Don't forget the Stoogebidens!

Tue, 05/20/2014 - 12:06 | 4777746 Emergency Ward
Emergency Ward's picture

For the 2016 Presidential Campaign, Hillary and Joe will promise not two, but three Chevy Volts for every garage.

 

[Jeb and Chris might promise four.]

Tue, 05/20/2014 - 12:25 | 4777836 TBT or not TBT
TBT or not TBT's picture

But they're shutting down the coal plants that make the things go. Not too good at math and science, these science-is-settled types.

Tue, 05/20/2014 - 12:51 | 4777918 fallout11
fallout11's picture

Helps to create brownouts, so they can further "deregulate" the electricity producers for more short term profiteering, financialization, sweetheart deals, then enact some more socialist legislation when the vox populi clamor for them to "do something!". Hegelian dialectic at work again.

Tue, 05/20/2014 - 12:52 | 4777919 oklaboy
oklaboy's picture

break out the marhmellow, it's campfire time

Tue, 05/20/2014 - 13:56 | 4778121 813kml
813kml's picture

It would take at least four Volts to haul Christie's fat ass and sense of entitlement around.

Tue, 05/20/2014 - 13:43 | 4778094 813kml
813kml's picture

I'm still waiting to get my hands on a Studebiden, just like its namesake it has a fancy grill and no power.

Tue, 05/20/2014 - 11:46 | 4777698 LawsofPhysics
LawsofPhysics's picture

and yet they remain in business...

moral hazard?  accotuntability?

tick tock motherfuckers...

Tue, 05/20/2014 - 11:59 | 4777740 disabledvet
disabledvet's picture

Treasury just exited the taxpayer's position in December. Coincidence?

I mean who doesn't love debt issuance "for no good business purpose" again? This thing sounds more like the Hatfields and the McCoy's by the day.

Tue, 05/20/2014 - 11:47 | 4777702 RacerX
RacerX's picture

It's sad how Life Imitates Art in the New Normal. Things like this are almost directly out of Atlas Shrugged.

Tue, 05/20/2014 - 11:47 | 4777703 goldhedge
goldhedge's picture

"American Built"

Tue, 05/20/2014 - 11:53 | 4777728 Theta_Burn
Theta_Burn's picture

Nope

Just American assembled with low bid foreign manufactured components, as all cars are.. the question really is about quality control and upper management oversite. promotions and raises for all the heads of these departments (like our Gov.) should get them back on track...

Tue, 05/20/2014 - 11:48 | 4777704 Loucleve
Loucleve's picture

I guess this explains the minimal $35 mm fine.

This is gonna be expensive!

Tue, 05/20/2014 - 11:50 | 4777708 highly debtful
highly debtful's picture

Our second car is a 1994 Lada Samara 1,1 litre. Shit to look at and horribly finished. But at least it starts every single time I turn the key. And the Russians don't do car recalls. I suppose that would be a never ending story. 

Tue, 05/20/2014 - 11:59 | 4777744 Uncle Remus
Uncle Remus's picture

In Russia, car recall you to your maker.

Tue, 05/20/2014 - 12:01 | 4777711 Squid Viscous
Squid Viscous's picture

Thanks Obozo for letting GM survive to continue making shit cars, and the occasional death trap!

Tue, 05/20/2014 - 12:07 | 4777771 Son of Loki
Son of Loki's picture

Squid, just dont turn the ignition on and you'll be safe.

Tue, 05/20/2014 - 13:45 | 4778107 813kml
813kml's picture

The CIA should be able to use them for assassination attempts, they come pre-wired to explode.

Tue, 05/20/2014 - 11:50 | 4777715 Dr. Engali
Dr. Engali's picture

Now that GM has a woman at the helm any charge of incompetence will be labeled as misogynistic, just as any disagreement with Zero's policies is labeled as racism.

Tue, 05/20/2014 - 11:53 | 4777723 dontgoforit
dontgoforit's picture

Heh, heh, heh....bumper cars comes to mind.

Tue, 05/20/2014 - 12:08 | 4777778 Comte d'herblay
Comte d'herblay's picture

I've never seen anything on ZH about NASCAR. 

Tue, 05/20/2014 - 11:55 | 4777730 Flakmeister
Flakmeister's picture

Didn't some guy names Tainter write about the decreasing marginal gains from increasing complexity?

This is a real time demonstration of sorts...

Tue, 05/20/2014 - 12:07 | 4777773 Comte d'herblay
Comte d'herblay's picture

 Not necesssarily.....

 

"......but the Eastern Roman Empire, bordered as it was by the Parthian/Sassanid Empire, did not have the option of devolving into simpler smaller entities".

It's inarguable that the systems globally are so intertwined that complete or even a fractional collapse are nearly impossible. 

 


Tue, 05/20/2014 - 12:55 | 4777931 fallout11
fallout11's picture

Yes, instead the Eastern Roman Empire and the Sassanid Persians bled each other white for ~150 years, then virtually collapsed to the Mahommadian tribal armies that rose up in the power vacuum left on the Arabian peninsula.

 

Tue, 05/20/2014 - 14:03 | 4778183 Uncle Remus
Uncle Remus's picture

History rhymes in Arabic as well. It is in their historical culture, pre-Mohammed.

Tue, 05/20/2014 - 14:21 | 4778261 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

No matter how complex systems get they are always built from extremely simple rules. They have to be and not only that those simple rules are iterative by the nature of how a system would build if you start with a single root thing whatever that is. Because of that they have symmetry also that shows up all over the place. Until people change at the root nothing changes. The cycle will always take the same basic iterative path form. This cycle is about over and unless people figure it out now, the next one if there one is going to be the same shit different iteration all over again.

Thu, 05/22/2014 - 12:57 | 4785268 Comte d'herblay
Comte d'herblay's picture

'about over'.

 

Define that. In measurable terms.

Tue, 05/20/2014 - 12:55 | 4777930 Citxmech
Citxmech's picture

The epic misallocation of resources on display here is positively discusting.

Heard Gerald Celente quote a FT article the other day (that I couldn't find) stating that China has poured more concrete in two years than the USA in the entire 20th century.

Our ability to run on fumes is truly impressive.

Tue, 05/20/2014 - 13:37 | 4778068 Flakmeister
Flakmeister's picture

I find that claim very hard to believe....

Actually, not very hard, damn well nigh impossible...

Tue, 05/20/2014 - 16:13 | 4778655 Citxmech
Citxmech's picture

I thought so too - which is why I tried to source it - but even though Celente is a bit of a douche, I don't think he'd make something like that up.  Not sure about the FT or if he miss-cited the state.

I would've discounted it completely but I keep reading about all of those ghost cities and goosed 6% gdp figures. . . .

Anybody else know anything about this?

Tue, 05/20/2014 - 16:42 | 4778757 Citxmech
Citxmech's picture

Ah ha.  Here it is:  http://www.ft.com/intl/cms/s/0/4f74c94a-da77-11e3-8273-00144feabdc0.html

 

Property sector slowdown adds to China fears
Tue, 05/20/2014 - 11:55 | 4777731 Atomizer
Atomizer's picture

Spoof GM Commercial Claims They Repaid Loan

 

Someone has assburn within the Obama administration.

Tue, 05/20/2014 - 11:58 | 4777737 dontgoforit
dontgoforit's picture

Nah - they feel no pain, no remorse, no conscious thing if it's not purely political.

Tue, 05/20/2014 - 11:58 | 4777741 dontgoforit
dontgoforit's picture

Oh, and I forgot to add:  they are NEVER wrong about anything.

Tue, 05/20/2014 - 11:57 | 4777736 Yen Cross
Yen Cross's picture

      The zero administration has their excuse for the Q-2 GDP miss now... All of the 'Government Motors' drivers had to stay home from work and shopping because their vehicles were in the shop for recall repairs.

Tue, 05/20/2014 - 11:58 | 4777739 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

Alrighty, ma'am, we've replaced that faulty/recalled cigarette lighter, and at absolutely no cost to you!  Now, in doing so, my tech noticed that the transmission seemed a bit off.  He took a look, and that sucker's fried.  If you pull off the lot with it like that, you might wind up flattened under a semi.  But don't worry, we can have that replaced and the vehicle ready for you tomorrow at a cost of $9990, and we have a nice new loaner car ready for you to use, no charge.

Tue, 05/20/2014 - 12:02 | 4777756 disabledvet
disabledvet's picture

"If it ain't broke don't fix it." Be cheaper to have a real warranty, yes yes?

Tue, 05/20/2014 - 11:59 | 4777745 carbonmutant
carbonmutant's picture

This is what happens when the Unions run a company...

Tue, 05/20/2014 - 12:05 | 4777768 ncdirtdigger
ncdirtdigger's picture

By 'union', do you mean community organizers?

Tue, 05/20/2014 - 12:00 | 4777748 JustObserving
JustObserving's picture

!5.2 million recalls will create lots of jobs - Yellen can print the money required in a second or two.

Forward

Last week the US Department of Transportation announced the end of its investigation into General Motors, fining the company a mere $35 million for covering up a deadly ignition switch defect for over a decade. At least 13 people have been killed from accidents relating to the defect, with the true number likely much higher.

The agreement between the government and GM is a whitewash. It shields the company and its executives from civil charges for failing to inform its federal regulator of a major safety defect, in exchange for a derisory fine.

“Upon receipt of the payment,” reads the agreement, the US government “releases GM, including its current and former directors, officers...from liability for civil penalties” related to covering up for the defect.

In announcing the deal, US Secretary of Transportation Anthony Foxx was forced to admit that, for a company the size of GM, “$35 million is a rounding error.” The auto giant made $3.8 billion profit in 2013, more than 100 times the fine.

Federal law requires automakers to notify the Department of Transportation within five days of discovering a safety-related defect. Instead, the company informed regulators thirteen years after it initially discovered in 2001 that the part did not meet its internal specifications.

http://www.wsws.org/en/articles/2014/05/20/pers-m20.html

Tue, 05/20/2014 - 12:00 | 4777749 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

ahhh..i was out this morning and the nasdaq 100 e mini was unchanged when i left---when I came back, up .21 percent. what happened? oh, the european close happened. It seems as if anything that "happens" is reason for the market to be bought. insane. 

Tue, 05/20/2014 - 12:00 | 4777750 UTICA CLUB XX PURE
UTICA CLUB XX PURE's picture

Too big too fail my ass.

You cant make them successful by merely giving them taxpayer bailout money. Some engineers & managers must also leave!

 

Tue, 05/20/2014 - 12:59 | 4777944 fallout11
fallout11's picture

The British already tried making their auto industry successful via bailouts, receiverships, mergers, government takeovers, etc. It didn't work, but it did delay the inevitable a bit (at great cost).
 http://www.cbsnews.com/news/the-decline-of-the-uk-auto-industry/

Tue, 05/20/2014 - 12:00 | 4777751 Flounder
Flounder's picture

George Carlin would be all over this.

May 18, 2014 Des Moines Register

GM memo reveals banned words

DETROIT – What do the words "safety," "chaotic" and "problem" have in common?

They're all on General Motors' list of banned words for employees who were documenting potential safety issues.

The revelation of the 68-word list is one of the odder twists in GM's ongoing recall of 2.6 million older-model small cars for defective ignition switches.

On May 16, the U.S. government slapped GM with a $35 million fine for failing to report the deadly defect for more than a decade. The government also released a 2008 GM training document that includes the list and warns employees to stick to the facts and not use language that could hurt the company down the road.

The word "defect," for example, "can be regarded as a legal admission" and should be avoided, the company document says.

Adjectives such as "bad," "terrifying," "dangerous," "horrific" and "evil" are on the list. So are unflattering terms such as "deathtrap," "widow-maker" and "Hindenburg." Even seemingly benign words such as "always" and "never" made it on the list.

From there, it veers into the extraordinary. "Kevorkianesque" — as in the late assisted-suicide activist Jack Kevorkian — and "Corvair-like" — a reference to the GM car once called "unsafe at any speed" by Ralph Nader — are on it; so are "apocalyptic," "grisly" and "rolling sarcophagus." Phrases such as "unbelievable engineering screw-up" and "potentially disfiguring" were also discouraged.

GM said flowery language simply wasn't helpful in getting to the root of a problem. Saying "This is a lawsuit waiting to happen," for example, isn't as useful as saying, "Windshield wipers did not work properly." But it also warned that language could be misinterpreted later by someone outside the company.

David Friedman, the acting chief of the National Highway Traffic Safety Administration, said Friday that the materials were part of a larger problem at GM, where engineers were reluctant to send documents with words like "defect" up the chain of command.

"The fact that GM took so long to report this defect says there was something very wrong with the company's values," he said.

GM said now, employees are now encouraged to discuss safety issues.

"We encourage employees to be factual in their statements and will continue to work with NHTSA to improve our safety processes," the company said in a statement.

 

http://www.desmoinesregister.com/story/news/2014/05/18/odd-news-general-...

 

Tue, 05/20/2014 - 12:10 | 4777784 Flounder
Flounder's picture

You have to admit "rolling sarcophagus" is pretty clever.

Tue, 05/20/2014 - 12:15 | 4777800 p00k1e
p00k1e's picture

Instead of building a better car, GM peeps are brainstorming on how to deflect words used to describe their products.
  

What’s going on?? 

Tue, 05/20/2014 - 12:49 | 4777903 dontgoforit
dontgoforit's picture

Let the unions fix it, heh, heh, heh.

Tue, 05/20/2014 - 13:05 | 4777967 fallout11
fallout11's picture

The internal culture at GM has been defective, myopic, insular, and geared towards failure since John DeLorean penned "On A Clear Day You Can See General Motors".  Like some kind of semi-recovered addict, they seem to get better for a while, then fall right back into the already failed mentality.

Tue, 05/20/2014 - 12:27 | 4777841 PoliticalRefuge...
PoliticalRefugeefromCalif.'s picture

..just a prescient tribute to the death panel concept..

 

For war!..

Tue, 05/20/2014 - 12:46 | 4777892 dontgoforit
dontgoforit's picture

Or if it's a mini-van, 'sarcophagi.'

Tue, 05/20/2014 - 12:59 | 4777946 kchrisc
kchrisc's picture

"Our cars are doubleplusgood."

Tue, 05/20/2014 - 12:00 | 4777752 Youri Carma
Youri Carma's picture

The US really looks like the ol soviet union now, GM is the new old Russian Lada http://img.photobucket.com/albums/v393/youricarma/Miscellaneous/Colligno...

Tue, 05/20/2014 - 12:05 | 4777766 The wheels on t...
The wheels on the bus are going to fall off's picture

This is business suicide, imagine the cost of recalling over 15 million cars in a year......jesus christ......bullish...

Tue, 05/20/2014 - 12:19 | 4777813 p00k1e
p00k1e's picture

C’mon, how will dealers perform common tasks such as tire rotation work in a timely manner considering the bays are flooded with recalled machines.

GM is killing their dealer network. 

 

“It took me four hours to get my radiator coolant checked.  I’m going to Sears next time!”

Tue, 05/20/2014 - 12:07 | 4777776 ebworthen
ebworthen's picture

Time to push more inventory.

Tue, 05/20/2014 - 13:06 | 4777968 fallout11
fallout11's picture

....off a barge, into the ocean.

Tue, 05/20/2014 - 12:14 | 4777794 jpc578
jpc578's picture

How is this going to affect GM's ability to pay its dividend?

Tue, 05/20/2014 - 12:18 | 4777809 Bunga Bunga
Bunga Bunga's picture

Calm down, crappy quality is a completely normal symptom in central planning.

Tue, 05/20/2014 - 12:24 | 4777833 Sudden Debt
Sudden Debt's picture

sold or build? big difference there....

Tue, 05/20/2014 - 12:29 | 4777845 Rican
Rican's picture

Long bicycles.

Tue, 05/20/2014 - 12:31 | 4777850 TalkToLind
TalkToLind's picture

Bullish!  

~Idiocracy II:  Reverend Upgrayedd's Ministries

Tue, 05/20/2014 - 12:57 | 4777937 kchrisc
kchrisc's picture

Sheeple: "Bill, I just bought a new car. A new Chevy."

Bill: "Where is it? I'd like to see it."

Sheeple: "I left it at the dealer for repairs."

Bada-bing...

Tue, 05/20/2014 - 13:10 | 4777977 Miss Expectations
Miss Expectations's picture

John Oliver's GM Commercial Parody Asks Why WALK Through The Valley Of Death When You Can Drive?

http://autospies.com/news/John-Oliver-s-GM-Commercial-Parody-Asks-Why-WALK-Through-The-Valley-Of-Death-When-You-Can-Drive-81365/

Tue, 05/20/2014 - 15:27 | 4778506 kchrisc
kchrisc's picture

Now that was funny, even the serious parts, as the memo is just insane.

Tue, 05/20/2014 - 13:10 | 4777979 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Maybe it is Mary Barra the engineer taking charge instead of Mary Barra the lying CEO in this case?

Either way there will be no consequences for GM at the end of the day. They've become TBTF for the automotive industry and the unrigged stock market will make sure they keep getting the backdoor funding they need.

 

Tue, 05/20/2014 - 13:12 | 4777984 homiegot
homiegot's picture

Where can I buy one of these pieces of shit?

Tue, 05/20/2014 - 13:20 | 4778016 Fix It Again Timmy
Fix It Again Timmy's picture

GM: "We roll cars off the production line as quickly as possible and finish them at the dealers."....

Tue, 05/20/2014 - 13:23 | 4778023 Atlantis Consigliore
Atlantis Consigliore's picture

"Total Recall"  a Schwartzennegger near you at the junk pile soon.  (Stuff dat Channel) 

Tue, 05/20/2014 - 13:28 | 4778041 orangedrinkandchips
orangedrinkandchips's picture

Luckily (and seriously) NONE of these recalled pieces of shit are in the hands of consumers....

 

They are all STOCKPILED on lots around the country via channel stuffing....

Tue, 05/20/2014 - 13:37 | 4778066 young turk
young turk's picture

havnt owned a GM vehicle since 1972

Tue, 05/20/2014 - 13:54 | 4778134 FredFlintstone
FredFlintstone's picture

I must be slow. My last one was a new 2004. I have since purchased 3 Hondas. Tired of being the patriotic dumb shit who was hurting himself financially.

Tue, 05/20/2014 - 14:33 | 4778320 p00k1e
p00k1e's picture

Same.  I only drive Toyota now – the most American made car sold in North America.  

Here’s a funny.  I live near Detroit and in general Detroiter’s complain about people who buy foreign cars with the same excuse, “You’re sending profits overseas…” These same people embrace the idea of the Chinese buying Detroit property and fixing the place up all the while overlooking the profit from a rent check paid to  a Chinese landlord will be sent overseas.

How weird.

Tue, 05/20/2014 - 13:45 | 4778109 TalkToLind
TalkToLind's picture

The good news is that most of these vehicles will end up as fleet vehicles for .GOV as part of their "Stealth Attrition" program. 

~Idiocracy II:  Reverend Upgrayedd's Ministries

Tue, 05/20/2014 - 14:40 | 4778345 Fix It Again Timmy
Fix It Again Timmy's picture

I haven't bought an American car since the day I was car shopping and looked at a Dodge engine and then looked at a Toyota engine....

Tue, 05/20/2014 - 14:53 | 4778392 Blood Spattered...
Blood Spattered Banner's picture

It's too bad GM wasn't allowed to go under.  They've been making shitty cars for the last 30+ years and were rewarded with our tax dollars for doing so.  Just another poignant example of how capitalism is truly dead in America.  Think of the better car companies that could have emerged from GM's demise.  Instead we're left with this bureacratic monstrosity that spends more on PR and damage control than on innovating better and safer vehicles.  We've become a nation of pussies that are afraid of failure, fucking pathetic.

Tue, 05/20/2014 - 15:21 | 4778488 p00k1e
p00k1e's picture

You are correct.

America put GM out of business.  Instead of investing the money into future tech, as taxpayers we were forced into supporting obsolete technology.

Tue, 05/20/2014 - 15:03 | 4778428 crazybob369
crazybob369's picture

Chevy, the new Yugo.

Tue, 05/20/2014 - 15:09 | 4778452 TalkToLind
TalkToLind's picture

You shouldn't insult Yugo like that. ;)

 

~Idiocracy II:  Reverend Upgrayedd's Ministries

 

 

Tue, 05/20/2014 - 16:29 | 4778696 John Law Lives
John Law Lives's picture

There is some potential upside to all of this mess.  Maybe Godzilla will take a break from making movies and go stomp on all the unsold cars sitting on dealer lots and the rest of the cars involved in the recalls.  That should REALLY stimulate the economy in a fashion that Krugman might applaud.

GM_FUBAR.

Tue, 05/20/2014 - 17:01 | 4778837 esum
esum's picture

buy a GM auto  elect an incompetent unknown  amerikans are plain FUBAR

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