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Stunning Fact Of The Day: In 2014 GM Has Recalled More Cars Than It Sold In 2013 And 2012

Tyler Durden's picture




 

Just as we were about to proudly announce that today was one of those rare days when the bailed out consortium of union votes for purchase also known as Government General Motors did not announce the now generic daily recall of its atrociously built flaming paperweights, here comes the late afternoon stunner and proves us wrong yet again:

  • GM TO RECALL 3.16M 2000-'14 MODEL YR CARS ON IGNITION ISSUE
  • GM SAYS HAS LAUNCHED 44 RECALLS THIS YEAR
  • GM SAYS TOTAL NORTH AMERICA RECALLED CARS NOW 20.0 MLN

More details from Bloomberg:

GM told NHTSA it would recall 3.16m older model vehicles because combination of too much weight on key chain and “jarring event” may cause ignition to inadvertently rotate to accessory position.  Also announced 5 other recalls decided last Wednesday.  Sees charge up to $700m in 2Q incl. $400m for May 15, May 20 recalls.

And the bottom line, and why this entire bailout farce is now beyond simply criminal and purely ridiculous: as of this moment, GM has recalled more than double the number of cars it sold in all of 2013, or, another way of putting it, more than the total number of cars it sold in 2013 AND 2012 combined.

The good news, all those dealer and non-dealer parking lots still have space to accommodate more GM "sales" that just sit there and wait.

The bad news: all the dealer and non-dealer parking lots are getting full.

 

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Mon, 06/16/2014 - 16:21 | 4862553 SilverIsKing
SilverIsKing's picture

I sometimes forget but recall is a good thing, right?

Mon, 06/16/2014 - 16:23 | 4862561 Bennie Noakes
Bennie Noakes's picture

I can't recall.

Mon, 06/16/2014 - 16:25 | 4862577 lordylord
lordylord's picture

Isn't this a Keynesian's wet dream?

Mon, 06/16/2014 - 16:30 | 4862584 Occident Mortal
Occident Mortal's picture

$11.2bn of tax dollars later...

and GM are still making absolutely shit cars.

USA is making Stalin proud.

Mon, 06/16/2014 - 16:31 | 4862600 aVileRat
aVileRat's picture

Last post for the day.

Fucking love it how CH.11 bankruptcy fraud is now being used as a bullish case for GM

http://online.wsj.com/articles/gm-says-it-has-a-shield-from-some-liability-1402874861?mod=WSJ_hps_sections_business

 

 

Mon, 06/16/2014 - 16:37 | 4862612 Occident Mortal
Occident Mortal's picture

Fuck you Schumpeter!

Mon, 06/16/2014 - 16:40 | 4862621 aVileRat
aVileRat's picture

wut?

(don't get it Occident, I'm dumb and slow)

edit: got it, I'm dumb & slow.

 

Mon, 06/16/2014 - 17:00 | 4862719 SafelyGraze
SafelyGraze's picture

another stunning fact: 

GDP has been redefined so that each recall contributes

not only the repairs performed during the recall itself, but the repaired vehicle when returned to its owner counts toward gdp a second time

this is Great News for the GDP

 

Mon, 06/16/2014 - 17:08 | 4862747 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

Why should GM worry about making money when Uncle Satan can print it whenever GM is in trouble?

Mon, 06/16/2014 - 17:20 | 4862789 linniepar
linniepar's picture

Makes that 50% haircut "we" took on the stock loss that much more stomachable. Fuck you cronyists!

Mon, 06/16/2014 - 17:38 | 4862839 Larry Darrell
Larry Darrell's picture

Look, GM is bankrupt again.  It's official.  Their audit this year shows it pretty clearly.  The accountans have various opinions about how long they can keep it a secret ranging from 8 to 16 months.  By the time it's all said and done, a 50% loss actually will beat the average, but it doesn't matter because it's all imaginary anyway.

Edit:  No, I'm not one of the accountants.  I may or may not have actually spoken to someone on the accounting team.

Mon, 06/16/2014 - 20:22 | 4863387 rcintc
rcintc's picture

Chapter 22, Here We Come!!

Mon, 06/16/2014 - 16:27 | 4862585 Rainman
Rainman's picture

...and this pig is up 1.2% on the day ....just another reward for failure

Mon, 06/16/2014 - 17:53 | 4862901 max2205
max2205's picture

General Recall Motors and Wheels.

Mon, 06/16/2014 - 17:35 | 4862841 world_debt_slave
world_debt_slave's picture

Total Recall

Tue, 06/17/2014 - 02:41 | 4864153 shitco.in
shitco.in's picture

Broken Car Fallacy

Mon, 06/16/2014 - 16:20 | 4862554 Meat Hammer
Meat Hammer's picture

LOL.  Good!

 

Mon, 06/16/2014 - 16:21 | 4862556 So Close
So Close's picture

This must be GDP postitive due to all of the extra wages paid to employees.

Mon, 06/16/2014 - 16:39 | 4862617 ParkAveFlasher
ParkAveFlasher's picture

Extra wages, extra freighting, extra diesel consumption by car carriers, extra redesigning, extra re-backtodadrawingboard-ing, extra promotional campaigns, extra re-fills of pharma perscriptions to employees of dealerships ... Krugman's eyes just rolled into the back of his head out pure ecstacy.  He is right now thumbing his sphincter to leverage the pleasure, as I type this.

Mon, 06/16/2014 - 16:24 | 4862563 Yancey Ward
Yancey Ward's picture

No problem!  GM makes 10,000 dollars on every sale!

Mon, 06/16/2014 - 16:24 | 4862566 Ancona
Ancona's picture

This is good news! Think of all the jobs that will be created!

<sarc>

Mon, 06/16/2014 - 16:24 | 4862568 kowalli
kowalli's picture

So they just building usefull cars and can't sell any. How is it still working???

Mon, 06/16/2014 - 16:25 | 4862569 syntaxterror
syntaxterror's picture

No money down! No credit checks! 8 year loans!

Step right up sucka!

Who cares about recalls?

Mon, 06/16/2014 - 16:25 | 4862570 alien-IQ
alien-IQ's picture

This should have been filed under "Monday Funnies" because that's fucking HILARIOUS.

Mon, 06/16/2014 - 16:25 | 4862571 navy62802
navy62802's picture

Shit, we aren't even half way through the year, either. I wonder what the year-end total will be, because at this pace, they might hit a total of 40 million recalls.

Mon, 06/16/2014 - 18:23 | 4862999 Blood Spattered...
Blood Spattered Banner's picture

That would be over 1 car out of 10 proportionate to US population.  Staggering.

Mon, 06/16/2014 - 16:26 | 4862578 pods
pods's picture

Just a sign of cheapening parts to save $$.

But you can have all the value added crap you (don't) want like bluetooth and all the other fancy (read expensive to fix) crap.

Never thought things would get bad enough that GM could fuck up an ignition switch.

<facepalm>

pods

Mon, 06/16/2014 - 16:40 | 4862623 NotApplicable
NotApplicable's picture

Here I was assuming it was an electrical/computer issue, but no, they can't even make a dependable mechanical switch.

Mon, 06/16/2014 - 16:28 | 4862580 stant
stant's picture

Gm became a pension fund and lender of debt that also built cars. It's hard to get back to just cars a do it well. Lol should have been broke up and sold off the first time

Mon, 06/16/2014 - 16:27 | 4862581 the not so migh...
the not so mighty maximiza's picture

TOTAL RECALL!!!! Why the hell did i buy this piece of sh....(explosion)

Mon, 06/16/2014 - 17:37 | 4862848 phoolish
phoolish's picture

Apparently, Total Recall x2.+

 

 

Mon, 06/16/2014 - 16:28 | 4862589 Binko
Binko's picture

How does it even work to recall 20 million vehicles?

If all the mechanics at all the GM dealers in the USA work full-time on recalled cars how long will it take to get through 20 million? 3 years? 5 years? More.

And how can GM possibly pay for this? With the next bailout I presume is the plan.

Mon, 06/16/2014 - 16:29 | 4862592 Tinky
Tinky's picture

Yes, but to be fair, most of the cars that they have sold will never be paid off, and will require repossessing.

Mon, 06/16/2014 - 16:31 | 4862598 the not so migh...
the not so mighty maximiza's picture

that is the new angle, will the debter die before the repo?

Mon, 06/16/2014 - 16:31 | 4862601 Dr. Engali
Dr. Engali's picture

Hey but they have a woman CEO, and isn't that the only thing that really matters? To hell with quality, the important thing is to make sure we are politically correct.

Mon, 06/16/2014 - 17:38 | 4862852 phoolish
phoolish's picture

Clearly, JUST having a woman CEO isn't diversity enough.

 

Wed, 06/18/2014 - 04:14 | 4868199 Kobe Beef
Kobe Beef's picture

Quality and Equality are mutually exclusive. Lowest common denominator excludes high achievers. Can't be the best when your goal is to include all the rest.

GM is now just another Mulitkult Potemkin like universities, government, and mass media, protected on high by Diversity Kommisars. Race to the bottom, USSA!

Mon, 06/16/2014 - 16:32 | 4862602 kowalli
kowalli's picture

Recall is a spell in a game, nothing so see here,moving on=)

Mon, 06/16/2014 - 16:32 | 4862607 Manny Silva
Manny Silva's picture

Soon enough GM will announce recalls on cars which have yet been produced.

Mon, 06/16/2014 - 16:49 | 4862611 homiegot
Mon, 06/16/2014 - 16:57 | 4862707 giggler321
giggler321's picture

In the GDR, you ordered your Tribant at birth and by the time they reached 18, it would roll of production line. 
KEINE RÜCKKEHR. AS verkauft wird. KÄUFER hüten.

Mon, 06/16/2014 - 17:20 | 4862787 Emergency Ward
Emergency Ward's picture

Aren't Trabants too toxic to recycle?

Mon, 06/16/2014 - 16:58 | 4862711 Five8Charlie
Five8Charlie's picture

If you bought a GM car in the last 30 years you'll need to look somewhere else for sympathy.

Mon, 06/16/2014 - 16:59 | 4862720 NOZZLE
NOZZLE's picture

I heard some media assclown explaining how recalls are good because it shows that GM is being proactive and adding value to cars by fixing them.

Mon, 06/16/2014 - 17:05 | 4862740 cooky puss
cooky puss's picture

At this point it's pretty safe to assume GM is wreaking havoc waaaay more bailed out than bankrupt.

Keep 'em tax dollars comin'.

In your face "common sense".

Mon, 06/16/2014 - 17:13 | 4862751 Racer
Racer's picture

Proof that bailing a company out only perpetuates incompetence!

Mon, 06/16/2014 - 17:15 | 4862774 gcjohns1971
gcjohns1971's picture

Okay,

So when will we be legally required to buy a GM?

The precedent has been set.  It is just a tax.

Who else with a politician in their pocket might want everyone to be REQUIRED to buy their 'services'????

The INSURANCE cartel?

The LEGAL cartel?

Microsoft or Google in return for all the Intelligence they've delivered?

Time will tell.

Because it will be someone and something.

Mon, 06/16/2014 - 17:28 | 4862818 JuliaS
JuliaS's picture

You are legally required to by a GM. It's called the bailout.

Mon, 06/16/2014 - 17:18 | 4862782 Atomizer
Atomizer's picture

Boosting GDP on crutches. 

Mon, 06/16/2014 - 17:20 | 4862786 Wannabee
Wannabee's picture

Holy cow...the ol' key fob and push button start is looking mighty attractive now isn't it GM

Mon, 06/16/2014 - 17:30 | 4862825 Blood Spattered...
Blood Spattered Banner's picture

TOTAL RECALL!

 

 

 

 

...except there are no 3-tittied women :(

Mon, 06/16/2014 - 17:33 | 4862834 bombdog
bombdog's picture

Plenty of other mutuants though.

Mon, 06/16/2014 - 17:40 | 4862853 kellycriterion
kellycriterion's picture

I'm not sure about the more recent models but used GM trucks are a good value, especially if you can repair doors and windows yourself.

You should also be aware that many used vehicles will have incorrect parts. Incompetence is rife among used car make ready depts. Deliberate in some cases. This is even true of used car only dealers. If you're knowledgeable this provides opportunities for bargain hunting and bargaining.

Mon, 06/16/2014 - 21:45 | 4863657 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Had a GM truck....cheap rattle trap but it looked good.

Mon, 06/16/2014 - 17:42 | 4862857 Bunga Bunga
Bunga Bunga's picture

When will the recovery be recalled?

Mon, 06/16/2014 - 17:45 | 4862868 NoTTD
NoTTD's picture

When does the stock hit a new high?  Daily? Hourly?

Mon, 06/16/2014 - 17:47 | 4862879 NoTTD
NoTTD's picture

Al Queda on the run!

GM alive!

 

Fuck.

Mon, 06/16/2014 - 17:49 | 4862887 Be_Optimistic
Be_Optimistic's picture

With this news the stock price is sure to go up.

Mon, 06/16/2014 - 17:50 | 4862891 Be_Optimistic
Be_Optimistic's picture

They're really taking this bad news is good news strategy very seriously..

Mon, 06/16/2014 - 17:54 | 4862906 pagan
pagan's picture

Why do Americans keep buying junk like GM cars?

If you want a nice expensive car, buy German.

If you want a cheaper good quality car, buy Japanese.

Mon, 06/16/2014 - 18:12 | 4862962 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Ford builds the best american cars/trucks imo. German cars are mind numbing to drive after awhile almost boring, but are the best overall. Asian cars are tools to get from a to b.............. reliabilty is the best imo.

Mon, 06/16/2014 - 18:09 | 4862955 ejmoosa
ejmoosa's picture

The fact of the day should be that more dollars are collected by the Federal Government in taxes than all the profits of ALL American businesses after taxes.

Your Federal Government:  1.934 Trillion Dollars

Amercan Business after Tax:  1.655 Trillion Dollars (source: BEA GDP Report)

Seems that the Federal government is profitting more from the private sector than the private sector.

Marx would be pleased.

 

 

Mon, 06/16/2014 - 18:15 | 4862958 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

19 million pieces of shit recalled, yet the stock stays green.....   ;)-~~~~

Mon, 06/16/2014 - 18:41 | 4863063 yellowsub
yellowsub's picture

Now would htat ratio be even higher if it counted real customer sales vs channel stuffing as sales too?

Mon, 06/16/2014 - 20:36 | 4863430 whoopsing
whoopsing's picture

Talk about timing .... I just  recieved a letter in the mail today informing me that the car I bought from them in  '04 may have a potential problem with the steering as the electric power steering (EPS) might basically crap out at any given moment whilst driving said car  and while they realize this is a serious problem, unfortunately they do not posess the parts to fix the problem, they will notify me when they do.

Mon, 06/16/2014 - 21:03 | 4863511 Last of the Mid...
Last of the Middle Class's picture

Jeez, I hope those nice union folks don't lose their jobs. If everyone just sits down and has a nice meal I'm sure this can all be worked out. Bwwwwaaaaaa TBTF shits all over the american people who's money it used to be bailed out one piece of shit car at a time. You gotta love the irony.

Tue, 06/17/2014 - 02:31 | 4864141 Seeing Red
Seeing Red's picture

Kudos -- I'm not seeing the usual "it's the (union) workers fault the cars aren't better" thinking here.  Not that I'm pro-union ... I just have this CRAZY idea that assemblers can't make something any better than ... wait for it ... THE DESIGN (hint: engineering).

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