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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SilverIsKing's picture

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

lordylord's picture

Isn't this a Keynesian's wet dream?

Occident Mortal's picture

$11.2bn of tax dollars later...

and GM are still making absolutely shit cars.

USA is making Stalin proud.

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

 

 

aVileRat's picture

wut?

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

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

 

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

 

Gaius Frakkin' Baltar's picture

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

SoberOne's picture

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

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.

rcintc's picture

Chapter 22, Here We Come!!

Rainman's picture

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

max2205's picture

General Recall Motors and Wheels.

So Close's picture

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

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.

Yancey Ward's picture

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

Ancona's picture

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

<sarc>

kowalli's picture

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

syntaxterror's picture

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

Step right up sucka!

Who cares about recalls?

alien-IQ's picture

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

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.

Blood Spattered Banner's picture

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

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

NotApplicable's picture

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

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

the not so mighty maximiza's picture

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

phoolish's picture

Apparently, Total Recall x2.+

 

 

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.

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.

the not so mighty maximiza's picture

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

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.

phoolish's picture

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

 

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!

kowalli's picture

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

Manny Silva's picture

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

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.

Emergency Ward's picture

Aren't Trabants too toxic to recycle?

Five8Charlie's picture

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

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.

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".

Racer's picture

Proof that bailing a company out only perpetuates incompetence!

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.

JuliaS's picture

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

Atomizer's picture

Boosting GDP on crutches. 

Wannabee's picture

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