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Record GM Recalls Lead To Best June Since 2007

Tyler Durden's picture




 

GM sold more cars in June 2014 than any other June since 2007. Just imagine if GM had killed more people, recalled more cars, been busted for more lies, and had more congressional hearings. As GM's head of sales exudes, this was "the third very strong month in a row for GM... in fact, the first half of the year was our best retail sales performance since 2008, driven by an outstanding second quarter." We can only imagine the depths of FICO scores, terms of financing, and margin-crushing incentivization that dealers were subsidized into offering to sell this many 'kevorkianesque rolling sarcophagus." How did they do this? Government (+14%) and Fleet sales (+48%) - sound sustainable?

 

 

But what drove all this exuberance was not the average joe...

Commercial fleet sales were up 48 percent, driven by strong pickup, van and small car sales. Government deliveries were up 14 percent thanks to strong car sales.

 

And incentives remain notably above industry average and rising...

Incentive spending as a percentage of ATP was 10.9 percent, up 0.2 points from a year ago, according to J.D. Power PIN estimates. The industry average for June was 9.7 percent, also up 0.2 points from a year ago.

*  *  *

We assume this proves that the old adage that "there is no bad publicity" is true... though in this case, it seems a bit far-fetched.

 

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Tue, 07/01/2014 - 09:46 | 4913499 TeamDepends
TeamDepends's picture

America is now clearly suicidal.

Tue, 07/01/2014 - 09:48 | 4913503 tarsubil
tarsubil's picture

What could possibly go wrong?

Tue, 07/01/2014 - 09:54 | 4913523 Haus-Targaryen
Haus-Targaryen's picture

Who in God's name would buy a Buick when you can get an Infiniti/Lexus/BMW/Mercedes/Audi for the same price?

Tue, 07/01/2014 - 09:56 | 4913527 Bananamerican
Bananamerican's picture

Memo to GM: Sell more cars to .gov!

Tue, 07/01/2014 - 10:00 | 4913540 Headbanger
Headbanger's picture

If only GM gave cars to ISIS...

Iraq would be trouble free today.

Tue, 07/01/2014 - 10:08 | 4913561 Four chan
Four chan's picture

this is like pointing out the fact zh has been wrong on every doomsday prediction since 08. its just being indignant to a fact contrary to the fact you want. this settlement is going to be a drop in the bucket for gm, now weather they can build a flawless car from here on out as expected is another question entirely.

Tue, 07/01/2014 - 10:10 | 4913583 NoDebt
NoDebt's picture

GM's been living on highly-discounted fleet sales for 30+ years.  So in answer to the question in the article: 'Sound sustainable?', the answer is YES.  It is absolutely sustainable.

Tue, 07/01/2014 - 11:59 | 4914032 Manthong
Manthong's picture

“GM sold more cars in June 2014”

Might that not be better phrased “GM stuffed more dealer descending colons (AKA ‘channels” ) in June 2014”?

Tue, 07/01/2014 - 13:31 | 4914382 Lost Word
Lost Word's picture

An example of the old saying, Americans don't read/watch the News ???

An example of the old saying, There's No Such Thing as Bad Publicity ???

Tue, 07/01/2014 - 10:15 | 4913601 booboo
booboo's picture

How ironic, he said "weather" must be a .gov shill

Tue, 07/01/2014 - 10:47 | 4913705 sodbuster
sodbuster's picture

Had baseball size hail come thru Blair NE about a month ago. I was told Woodhouse lost 4200 new cars and trucks. They handle all  brands- Ford, GM, and Chrysler. That had to be good for "sales".

Tue, 07/01/2014 - 10:44 | 4913699 Hippocratic Oaf
Hippocratic Oaf's picture

@Four chan

weather

Yep, he owns GM

Tue, 07/01/2014 - 10:06 | 4913562 666
666's picture

If sales to the gubmint are up, then there will be fewer live gubmint employees on the payroll. I guess that's one way to reduce the deficit...

Tue, 07/01/2014 - 11:38 | 4913923 TheReplacement
TheReplacement's picture

Did you miss the pictures of ISIS on parade?  They are full on GM/Toyota.

Tue, 07/01/2014 - 11:05 | 4913765 flapdoodle
flapdoodle's picture

Actually, this is true. I work for a company that is funded by .gov - lo and behold, half a dozen new GM vehicles have just shown up last week!

The guys in the motor pool hate these GM pieces of junk  - they are pure crap and spend lots of time in the garage, but the guys who keep them running weren't in the loop when they were acquired/purchased/donated...

Tue, 07/01/2014 - 10:04 | 4913554 Dr. Engali
Dr. Engali's picture

.gov..., and they have nothing to do with God.

Tue, 07/01/2014 - 11:40 | 4913926 TheReplacement
TheReplacement's picture

Nothing to do with God... wouldn't want be them at dying time trying to test that theory.

Tue, 07/01/2014 - 10:56 | 4913724 starman
starman's picture

The sheep and (foreigners)love GM.

How can you go wrong with 84 months financing and  subprime lending?

Tue, 07/01/2014 - 11:01 | 4913759 Reaper
Reaper's picture

The ads on the local radio stations say come on into your various local Government Motors dealers, where everyone is approved for credit. Did this happen in housing, earlier?

Tue, 07/01/2014 - 14:59 | 4914690 madcows
madcows's picture

I keep hearing those adds, and think the same thing.  But, it worked, right.  sales are up.  What bank is willing to finance an 8 year sub-prime loan?  Didn't they learn their lesson 6 years ago in housing?  Maybe they did.  They'll line up for the next bailout, who coulda known it would all come crashing down.  handouts.  get your handouts.

Tue, 07/01/2014 - 11:30 | 4913824 madcows
madcows's picture

They're not the same cost.  The buick's are thousands cheaper(still way too fucing expensive).  Granted, they're not as high end.  I'd put them above the general vehicle, but not as luxury as a german / jap brand.

I'm happy with the buick.  I'll let you know if it's reliable later on.

That said, I'll never own another chevy.  The Chevy's i've owned were complete shit.  Never owned a GMC.

Tue, 07/01/2014 - 09:56 | 4913532 BurningFuld
BurningFuld's picture

Meanwhile things are not so good for GM sales in Canada...................

http://www.huffingtonpost.ca/2014/06/30/gm-dealers-lawsuit-canada_n_5544...

Tue, 07/01/2014 - 10:09 | 4913577 Hippocratic Oaf
Hippocratic Oaf's picture

Phil Leblowme is cock hard reporting on GM right now on CNBS.

Stock up .50

Lies and untruth up 1000%

Tue, 07/01/2014 - 11:24 | 4913858 drendebe10
drendebe10's picture

1% YOY is strong?

Gummint Motors makes nuthin i want to own or drive. 

Tue, 07/01/2014 - 10:04 | 4913555 Caviar Emptor
Caviar Emptor's picture

I love this recovery! Very Kafka-esk with a bit of Sartre and Shopenhauer thrown in for good measure !

Tue, 07/01/2014 - 10:42 | 4913691 Freddie
Freddie's picture

I love that Tesla thing.

Tue, 07/01/2014 - 12:46 | 4914201 kchrisc
kchrisc's picture

The DC US may be suicidal, not America.

America is the American people and the land they inhabit. The DC US is the criminal interloper that occupies the American country and oppresses the American people.

 

 

"Is ones deserved fate on a guillotine suicidal?!"

Tue, 07/01/2014 - 09:49 | 4913504 youngman
youngman's picture

Amazing...this market is crazy...so are the people who are invested in it...GM selling cars...new ones at that....that will be recalled....the payout fund will be a full time job for Fienburg......

Tue, 07/01/2014 - 10:04 | 4913553 Son of Loki
Son of Loki's picture

"We're # One!!!"

 

BoooYaaaa!!!!

Tue, 07/01/2014 - 09:50 | 4913506 Dr. Engali
Dr. Engali's picture

Maybe taking the Blackwater approach is what I need to do in order to grow business:

 

Work with me or I will kill you.

Tue, 07/01/2014 - 10:07 | 4913564 Cognitive Dissonance
Cognitive Dissonance's picture

The ultimate 'incentive'.

Tue, 07/01/2014 - 11:11 | 4913793 Jlasoon
Jlasoon's picture

Vote or Die!!! "motherfucker"

Tue, 07/01/2014 - 13:34 | 4914399 Lost Word
Lost Word's picture

Similar to the Mafia approach to Business.

Tue, 07/01/2014 - 09:50 | 4913508 MeMongo
MeMongo's picture

Mongo misses that ole Kevorkian! A legend before his time

Tue, 07/01/2014 - 09:51 | 4913509 Billy Shears
Billy Shears's picture

"Sarcophagi," there fixed it for you.

Tue, 07/01/2014 - 09:51 | 4913510 SoDamnMad
SoDamnMad's picture

All those burned up Iraqai police and military vehicles have to be replaced. Bullish  Thank you ISIS  Your check is in the mail.

Tue, 07/01/2014 - 09:52 | 4913513 shovelhead
shovelhead's picture

That 14% rise in sales to Govt. is encouraging if they all go up in smoke.

Gotta start somewhere.

Tue, 07/01/2014 - 11:14 | 4913818 Jlasoon
Jlasoon's picture

How big is the Mojave Desert? Should make for a big parking lot.

 

Wait, Yucca mountain would be even better. Glowing "lightbright" glow-in-the-dark GMs anyone? 

Tue, 07/01/2014 - 09:53 | 4913514 El Hosel
El Hosel's picture

Gee Wally, just wait until we get some goods news.

Record setting daily market highs for government stocks, record setting daily recalls for government motors.... Wake me up when we break a record for recalled politicians.

BREAKING NEWS ...."Best day for DOW in two weeks" stocks gap higher on poor auto sales,  escalating violence, poverty, and war around the globe.

Tue, 07/01/2014 - 09:53 | 4913519 frankTHE COIN
frankTHE COIN's picture

This is Off Topic.
Since some Brokerages are leaving the Barclays DarkPool the early volume in Spy, Dia and Iwm have exploded by 4-5 times over the last few days. The Lit Mkts are revealing.

Tue, 07/01/2014 - 09:57 | 4913530 El Hosel
El Hosel's picture

Federal trading theme song, only the sexy people.

    http://www.youtube.com/watch?v=YleXlgHI1oM

Tue, 07/01/2014 - 09:58 | 4913534 oklaboy
oklaboy's picture

maybe they get to double count the recalled cars??

Tue, 07/01/2014 - 09:58 | 4913538 The Most Intere...
The Most Interesting Frog in the World's picture

I demand a channel stuffing article!

Tue, 07/01/2014 - 10:05 | 4913556 SWCroaker
SWCroaker's picture

Hey.  I own a GM.  Had it for about 2 years.  Has been in for two recalls.  Compared to other cars I've owned in my life (Mazda, Toyota, Saab, Ford, Land Rover, Mini, Mercedes, Audi) the car ranks near the top in general quality and reliability.  It's a keeper and does it's job.

The recalls are annoying, but I'd rather have things fixed if the issues are serious.  It sux that some people got hurt or died to find the problems.  It sux that the gov bails people out.  But lots of things sux.   

Keep in mind that I, and millions of others, maybe just like and are happy with our Chevys; compared to most other consumer goods these days, they're not bad at all.

Tue, 07/01/2014 - 10:17 | 4913589 Hippocratic Oaf
Hippocratic Oaf's picture

No, they're not 'bad, per se

they are gubmint funded and hawked by the left

bondholders got fucked so unions could win

volt (dolt) was a bust

and the fact that you admitted to 2 recalls in 2 years? I have to laugh

shall I keep going?..........

Tue, 07/01/2014 - 10:13 | 4913591 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Give it two more years then repost. I bet you wont own it unless you like owning junk.

Tue, 07/01/2014 - 10:16 | 4913611 NoDebt
NoDebt's picture

I drive a Chevy, too.  A late model Malibu.  It's OK.  Just a cheap lease car to get me around town.

Then I got in my mother-in-law's same-year Ford Fusion.  The Ford is a better vehicle by far.  Get in an Acura TSX, and it's a MUCH better vehicle.  

Then I get in my hotrodded 1978 Malibu and realize two things comparing old vs. new:

1.  New cars have had all their character sucked out of them.  Dry, sterile driving instruments, most of them.

2.  New cars will also usually have their headlights sucked out of them if they line up against my old 'Bu.

Tue, 07/01/2014 - 10:49 | 4913613 TalkToLind
TalkToLind's picture

I wouldn't knock your right to choose the car that works best for you.  However I will give a big F-You to Uncle Sugar for stealing taxpayer money to prop up a private corporation that would have otherwise failed (and will still fail from the looks of things).  It's not the American public's fault that GM couldn't compete.

Tue, 07/01/2014 - 10:32 | 4913653 p00k1e
p00k1e's picture

SWC,

 

Curiously I ask, if your loved one gets burnt-up in your GM vehicle, will you sue?

Tue, 07/01/2014 - 11:03 | 4913766 SWCroaker
SWCroaker's picture

No.  I'm really not the suing type.  That's just me personally, tho.

I've worked as an engineer supporting spaceflight.  I've seen firsthand that spending a gazillion dollars in an attempt to completely avoid any/all failures is mainly delusional; no matter how much is spent tyring to make things perfect, errors happen.  (An infinite amount of money would still not buy you perfect safety, it just makes your poor, and counterproductively reluctant to admit failure when it inevitably does occur).

Far better to recover from failures by learning and fixing, than by idiotically trying to do the impossible.  The net accumulation of knowledge on how to do things right should and does aggregate together over time: the vehicles of today are vastly superior and safter than those we drove in the 70s.  The recall issues today are nits by comparison (keychains and bad airbag sensors vs gas tanks that explode upon collision).

The car (that my wife drives) is, to the best of my assessment, sound safe & of qualify.  It isn't a battle fortress of protection from the world, but a car, one that needs to be treated like a machine, capable of performing a service but within reasonable expectations.  She could end up with a critical failure in her current car; she could have encountered the same in any of our prior vehicles.  I'm just saying that GM isn't special in that regard, depsite their current position in the recall lime-light. 

We can all be killed by many of the tools/implements/devices in our lives; cars are just one of many.  I just happen to believe that ongoing progress of misstep and learn is working.

 

Tue, 07/01/2014 - 11:25 | 4913866 malek
malek's picture

 keychains and bad airbag sensors vs gas tanks that explode upon collision

Just warp the comparison enough, plus downplay one side and grossly exaggerate the other (explode upon collision), and you can come up with any result you prefer.

I mean in the 70's no cars had airbags, shouldn't people be heppy to nowadays have airbags that at least sometimes work as intended?

Tue, 07/01/2014 - 11:32 | 4913902 p00k1e
p00k1e's picture

SWC,

Thanks for the detailed answer.

I don’t drive GM. 

If a GM vehicle ever hurts me, I’m taking everything the owner has.  

No mercy. 

Tue, 07/01/2014 - 11:48 | 4913966 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Do you think GM should have been bailed out in the first place or should have been allowed to fail?

Tue, 07/01/2014 - 14:46 | 4914622 p00k1e
p00k1e's picture

DCW,

Are you asking me if GM should have been bailed or failed?  What does it matter – I did write Bush, he said talk to Obama….  

Any who, Failed.

I already drive a substitute GM product – Toyota.  

Tue, 07/01/2014 - 22:15 | 4916282 El Hosel
El Hosel's picture

The bailout, the recalls, the IPO, channel stuffing... all have the same smell. Subsidized government and wall street excess at tax payers and future generations expense. GM is a perfect example of what a "Free Market" is not.

Tue, 07/01/2014 - 11:10 | 4913792 Overleveraged_a...
Overleveraged_and_Impatient's picture

Attention Zero Hedge, this is a real man in the real world with a real opinion. GM is not as bad as this site makes it seem.

Tue, 07/01/2014 - 10:11 | 4913586 SheepDog-One
SheepDog-One's picture

Pretty easy times when you've got 100% govt backing and bailouts.

Tue, 07/01/2014 - 10:14 | 4913596 SheepDog-One
SheepDog-One's picture

BTW, I guess it's another big POMO 'taper' open today, that's why equities are off to the moon?

Tue, 07/01/2014 - 10:23 | 4913627 El Hosel
El Hosel's picture

June window dressing over, "game on" July... July up early and sporting some very nice morning wood.

Tue, 07/01/2014 - 10:18 | 4913598 Overleveraged_a...
Overleveraged_and_Impatient's picture

I sell cars at a Chevy Cadillac dealership in New England. I've got to say that I am doing really well this year and cars are moving. This June I did 8 new Chevys and 2 Cadillacs. All to real people and most with excellent credit. No gov't fleet deals or Hertz/Avis deals here. Used cars are where it's really at though.

I've been selling GMs since 2010 and my income is better than most people my age (26). GM really does have better cars than the other brands.

Don't worry about the recalls. Most of these aren't even REAL recalls, they're just doing them so it looks responsible to congress and so they just avoid any more deaths.

However, with that said, I still have poor expectations for America and the economy as a whole.

Tue, 07/01/2014 - 10:20 | 4913621 El Hosel
El Hosel's picture

No bubble is complete until every teenager is driving a $40,000 car with 60 month zero down financing.

Tue, 07/01/2014 - 10:24 | 4913632 Overleveraged_a...
Overleveraged_and_Impatient's picture

Well the bubble isn't nearly finished then. U need excellent credit to qualify for 0% interest. Even so, most teenagers can not afford $800 per month.

Tue, 07/01/2014 - 10:43 | 4913695 Atomizer
Atomizer's picture

How many Chevy Volts did you sell during career showmanship?

Don't get your panties in a knot, just asking.

Tue, 07/01/2014 - 10:52 | 4913722 Overleveraged_a...
Overleveraged_and_Impatient's picture

I am actually pretty cool, calm and collected here (unlike some other commenters) so no worries.

I have sold 2 new Chevy Volts in my career and 1 used. They are not big movers. I haven't opened up a door to a Cadillac ELR yet. We've got 4 on the lot and they've been sitting for months.

Tue, 07/01/2014 - 11:39 | 4913925 fonzannoon
fonzannoon's picture

Overleveraged thanks for the boots on the ground info. I see GM cars piling up by me in unfilled lots and it blows me away. I said I would get pics into this site and I still have to do so. With that said a lot of my friends have bought/leased GM cars so they are definitely selling. The whole thing is confusing and it's hard to know what the real deal is. Good to see you are cool and collected and down worry about anyone giving you shit. When the economy finally collapses and the masses come roaring out of the countryside into the big cities our salesman jobs will be at a premium as the producers tear each other to pieces for a chance to push paper like we do.

Tue, 07/01/2014 - 12:10 | 4914066 Overleveraged_a...
Overleveraged_and_Impatient's picture

Hell yeah, brother.

Tue, 07/01/2014 - 10:27 | 4913629 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Fucking salesman.

Tue, 07/01/2014 - 10:29 | 4913640 Overleveraged_a...
Overleveraged_and_Impatient's picture

Salesmen make the world turn. Made $74K in 2012, $86K in 2013 and I'm on pace for $94K this year. (Before Taxes).

 

What do you do besides basement dwelling?

Tue, 07/01/2014 - 10:35 | 4913662 Hippocratic Oaf
Hippocratic Oaf's picture

He's a yid, you fuck.

It's understood he has $$$.

You sound like a true 'company guy'.

and never, NEVER, reveal your income/rip/vig on fight club!

You can leave now.

Tue, 07/01/2014 - 10:41 | 4913683 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Farmers/agriculture/food supply makes the world turn you stupid little fuck...never show all your cards to me again.

Tue, 07/01/2014 - 10:47 | 4913708 Overleveraged_a...
Overleveraged_and_Impatient's picture

Yeah, so a guy like me can go into the grocery stores and SELL the farmers produce to them. The world needs guys like me or nothing would get done.

 

What would Apple have been if Steve Wozniak was in charge of expanding the business? Complete shit, that's what.

 

 

 

Tue, 07/01/2014 - 11:36 | 4913912 Jlasoon
Jlasoon's picture

Mrs Henderson, I have this beautiful brand new Cadillac with shinny wheels and 27 layers of protective paint. It has all sorts of leg room, plenty of storage for your husband and his walker, and it comes with a 14 speaker Dolby Atmos surround sound package. You won't even need that hearing aid to listen to that talk radio. Ohhh and look at that Mrs Henderson, it's on sale for today only. This brand new CTS retails for $72k, I'll take $30k off the top, plus 5k because I like you, I'll throw in a wax job, some free oil changes and it can all be yours for the incredibly low price of $37k. That's only $385/month for 8 fucking years loser. Oooops did I say that out loud, I apologize Mrs Henderson. Should we get started on that paperwork?

 

 

Tue, 07/01/2014 - 11:40 | 4913930 fonzannoon
fonzannoon's picture

press hard, 4 copies.

Tue, 07/01/2014 - 11:45 | 4913954 Overleveraged_a...
Overleveraged_and_Impatient's picture

This made me chuckle. Good satire.

Fully loaded CTS V-Sport (Twin Turbo V6 engine) is around $70 grand. However, maximum discount plus rebates would bring you to about $62K.

Mr Henderson, check out this pre-owned 2012 with only 15K miles. Its yours for only $32,998.  <--- more realistic pitch.

Tue, 07/01/2014 - 11:45 | 4913950 Ness.
Ness.'s picture

Car salesman are like realtors - not necessary to complete the transaction.  They only increase the cost of business.  

the world needs guys like me or nothing would get done

 

Whaaa?  You didn't design it, you didn't help make it, you didn't finance it, you didn't transport it to a lot, you don't wash them on the lot, and you probably can't fix it if it's broken - so tell me again where you fit into this puzzle?

Tue, 07/01/2014 - 11:49 | 4913959 Overleveraged_a...
Overleveraged_and_Impatient's picture

Steve Jobs vs. Steve Wozniak...

 

I am Steve Jobs and I make the world go around. I am a professional communicator. I can talk to people... all sorts of people. I can present. I can make you feel confident. I plant good ideas in your brain, I make you feel good.

I encourage the consumer to consume. I create want. I make the world go around.

Without me the inventors starve, the mechanics starve.

Tue, 07/01/2014 - 11:55 | 4914010 fonzannoon
fonzannoon's picture

Ned: Phil? Hey, Phil? Phil! Phil Connors? Phil Connors, I thought that was you! 
Phil: Hi, how you doing? Thanks for watching. 
[Starts to walk away
Ned: Hey, hey! Now, don't you tell me you don't remember me because I sure as heckfire remember you. 
Phil: Not a chance. 
Ned: Ned... Ryerson. "Needlenose Ned"? "Ned the Head"? C'mon, buddy. Case Western High. Ned Ryerson: I did the whistling belly-button trick at the high school talent show? Bing! Ned Ryerson: got the shingles real bad senior year, almost didn't graduate? Bing, again. Ned Ryerson: I dated your sister Mary Pat a couple times until you told me not to anymore? Well? 
Phil: Ned Ryerson? 
Ned: Bing! 
Phil: Bing. 

Ned: Do you have life insurance, Phil? Because if you do, you could always use a little more, right? I mean, who couldn't?

Tue, 07/01/2014 - 12:02 | 4914046 Overleveraged_a...
Overleveraged_and_Impatient's picture

Ah, I love Groundhog Day.

 

After I graduated from college in 2009 I did apply to some insurance jobs... but didn't go for them because it's too much referral / family / friends business.

People come to ME when they want a car, and I make it really easy from there.

Tue, 07/01/2014 - 12:05 | 4914055 fonzannoon
fonzannoon's picture

I like the confidence man. Good stuff. Good attitude.

Tue, 07/01/2014 - 11:32 | 4913901 malek
malek's picture

The funny thing is all the GM fanbois here only talk in general terms such as "Chevys" and "Cadillcs" and "Buicks" but carefully avoid to mention exact models...

Tue, 07/01/2014 - 10:15 | 4913604 Proofreder
Proofreder's picture

Most American cars share the same shitty dashboard look that seems to have beginnings in the '61 Corvair.  Or Corvette.

Coolest instrument panel I ever encountered was a '49 Pontiac - a little red indian-shaped dashlight popped on when you pressed the high-beam foot button (remember the days before multiple steering wheel stalks ? ) Big as a bedroom in the back seat, too. 

Tue, 07/01/2014 - 10:28 | 4913639 MeMongo
MeMongo's picture

"Big as a bedroom in the back seat, too"

Is that where you porked your imaginary meme?

Tue, 07/01/2014 - 10:33 | 4913655 Atomizer
Atomizer's picture

/bahahahahaha

Tue, 07/01/2014 - 10:17 | 4913609 Duc888
Duc888's picture

 

 

 

Question:  When GM produces a car and channel stuffs it, is that car consider "sold" if it is sittin on some dealer lot, unsold?

Tue, 07/01/2014 - 10:18 | 4913618 Overleveraged_a...
Overleveraged_and_Impatient's picture

No.

Tue, 07/01/2014 - 10:49 | 4913712 Colonel Klink
Colonel Klink's picture

Actually YES, once it leaves the GM lot and makes it to a dealer, it is considered "sold" from GM stock.  It's now carried by the dealership.  If everything I've read is correct.  Thus the term "channel stuffing".

Tue, 07/01/2014 - 10:55 | 4913732 Overleveraged_a...
Overleveraged_and_Impatient's picture

When GM puts a car on a dealer lot, GM receives money for it, yes. However, the car is not "Sold" and not reported to the public as such until a real person buys it.

 

The chart you see in the article are actual sales from actual people. A person has to actually buy a car for it to be considered "Sold".

Tue, 07/01/2014 - 11:17 | 4913827 Colonel Klink
Colonel Klink's picture

Which explains the offloading of channel stuffing to government and rental car companies.  I'm sure they were sold at cut rate prices.

I'd like to see proof of your assertion.

Tue, 07/01/2014 - 11:21 | 4913849 Overleveraged_a...
Overleveraged_and_Impatient's picture

Every month the dealership has to report our sales to GM. GM receives these numbers from all the dealerships and uses them to make charts above.

Look at the chart above for your proof. For example, Escalade EXT is no longer in production and hasn't been for over a year, yet 2 were sold. How does a car out of production get 'channel stuffed'? It doesnt.

Those units were sitting on the lot for a while and was sold to an actual person.

Tue, 07/01/2014 - 11:24 | 4913861 Colonel Klink
Colonel Klink's picture

GM US deliveries as that chart states but I'm not sure that's the same number used at GM corporate for cars "sold".  Either way I'll defer to your explanation, although I believe there are more accounting tricks going on beyond what you state.

Tue, 07/01/2014 - 11:35 | 4913907 Overleveraged_a...
Overleveraged_and_Impatient's picture

I won't say it's impossible for them to fib some numbers in some way. Every money making business uses some type of accounting trick.

Tue, 07/01/2014 - 11:44 | 4913949 fonzannoon
fonzannoon's picture

Overleveraged is their a difference between putting the car on the dealer lot or some lot 5 miles away? That is what I see all over here. Empty lots full of GM cars. Not a dealership in sight. About 20 mins from me is the parking lot for Belmont raceway. As you drive past it you see thousands of cars sitting there (all makes and models). They have been sitting there for years now. The dealerships got paid for them? That is considered a "sale"?

Tue, 07/01/2014 - 11:52 | 4913985 Overleveraged_a...
Overleveraged_and_Impatient's picture

I understand there are lots full of unsold cars in various parts of the world. ZH had an article on that some weeks ago right?

 

I can only explain what I know and what I see. I work at a dealership that has between 700 - 1000 new and used vehicles on the lot. We do about 225 - 300 vehicle sales per month.

Tue, 07/01/2014 - 11:58 | 4914025 fonzannoon
fonzannoon's picture

fair enough. That article was suspect. Thanks for the numbers. 

Tue, 07/01/2014 - 11:51 | 4913981 Urban Redneck
Urban Redneck's picture

1) when a consumer buys a car who is the legal seller- the local dealer or publicly traded government motors?

2) does the dealer have to pay for the cars it receives from GM?

If 1) the former and 2) yes, then GM must recognize revenue when it sells a car to dealer, (pass through discounts, rebates, buybacks, and other financing gimmicks excluded and factored in later). As to how they "report" units to sheeplemedia, they can use whatever BS methodology they like, from an accounting & legal standpoint. As long it is the same BS from month to month- Uncle Sam doesn't care.

Tue, 07/01/2014 - 11:54 | 4914004 Overleveraged_a...
Overleveraged_and_Impatient's picture

1) The local dealer is, and the sale is reported to GM for them to produce in their reports.

2) Yes, and we also pay interest for the time they spend sitting on the lot.

 

Tue, 07/01/2014 - 10:30 | 4913646 Atomizer
Atomizer's picture

Raise the vehicle incentive rebate to $12,000. Lure the lemmings behind the wheel of a GM deathtrap. Advance new Obamacare enrollments. See, just laid out the dastardly plot.

/sarc

Tue, 07/01/2014 - 10:31 | 4913647 Guitarbill
Guitarbill's picture

This must be another accounting trick...counting recalls as sales or something fucking stupid. GM has had more recalls then sales and the recalls keep coming. Clearly very bullish for gubbmint motors.

Tue, 07/01/2014 - 10:35 | 4913663 Overleveraged_a...
Overleveraged_and_Impatient's picture

No tricks. Believe it or not real people with real money (those that are left) are buying GMs because they are good quality vehicles which are better than the competition.

Government no longer owns GM....

 

 

Tue, 07/01/2014 - 10:39 | 4913678 Hippocratic Oaf
Hippocratic Oaf's picture

Government no longer owns GM....

Ah, shit.......please, please stop.

Laughing hurts when you're hungover!

Are you talking about that little stock thingy?

Gubmint OWNS GM....think about it. 

and the next time you say they make quality I'm gonna take another drink

Go back to the carlot and stand alone with all your 'customers'

Tue, 07/01/2014 - 10:46 | 4913703 kito
kito's picture

actually guys like kyle bass own GM.  kyle preaches chicken little doom porn and gold to guys like you, all the while making real money on stocks like GM. too funny....oh and kyle isnt a yid!!! imagine that!!!

Tue, 07/01/2014 - 10:52 | 4913719 Colonel Klink
Colonel Klink's picture

Being a Yid in order to make real money isn't a requirement, stealing it usually is.

Tue, 07/01/2014 - 11:01 | 4913754 kito
kito's picture

ah yes, the bitterness of failure in your life shines through. blame others for your flaccidity!!! its the JEWS!! they are the reason i live in a trailer home!! they are the reason mama and papa are siblings!! they are the root cause of all things wrong with the world. why dont you man up and accept some personal responsiblity for your life and instead of blaming your ills on others....

Tue, 07/01/2014 - 11:12 | 4913799 Colonel Klink
Colonel Klink's picture

Yep retired at 42.  I'm a failure.

Please feel free to die of any one of these kiko.

https://www.jewishvirtuallibrary.org/jsource/Health/genetics.html

Tue, 07/01/2014 - 11:28 | 4913884 kito
kito's picture

haha. "retired" because you never had a fucking job other than plugging leaky tires for $5 a pop. your blind hate for others is rotting your soul colonel. if the world does go dark, i wouldnt waste my last bullet on your brain, since there would be no destruction of mass to effectuate your death......

Tue, 07/01/2014 - 11:38 | 4913921 Colonel Klink
Colonel Klink's picture

Yep, your superior inteleckt gots it nailed.  My soul is fine.  My cheeky comments to ridicule the theft and sheer lawlessness by certain Wall street and political class in order to draw attention to the disproportionate percentage with regards to actual percentage of the population isn't appreciated by those associated with them.  Go figgur!

No need to worry about wasting any bullets I have plenty to go around if ever needed.  Not self inflicted of course.

Thanks for playing pumpkin!

Tue, 07/01/2014 - 11:41 | 4913934 fonzannoon
fonzannoon's picture

no way you are retired at 42 unless you are a damned Jew. I call Jew on you. 

Tue, 07/01/2014 - 11:45 | 4913948 Colonel Klink
Colonel Klink's picture

Hahahaha, damn I've been discovered!  Thanks for the laugh today Fonz.

Tue, 07/01/2014 - 11:18 | 4913838 Atomizer
Atomizer's picture

Tornados and trailer home compounds never mix or match.

Tue, 07/01/2014 - 11:19 | 4913843 Colonel Klink
Colonel Klink's picture

I lovingly refer to them as disaster magnets.

Tue, 07/01/2014 - 11:06 | 4913781 MeMongo
MeMongo's picture

Haha Klink!

BINGO!

Tue, 07/01/2014 - 11:10 | 4913791 kito
kito's picture

i see the backswamp nazi movement is still alive and well post FS!!!

Tue, 07/01/2014 - 11:21 | 4913812 Colonel Klink
Colonel Klink's picture

As is the Jewish mafia one.  I guess the truth stings enough to lash out, eh kito?

Tue, 07/01/2014 - 11:36 | 4913914 kito
kito's picture

your jew envy is oozing from every orifice in your body klink......

Tue, 07/01/2014 - 11:44 | 4913943 Colonel Klink
Colonel Klink's picture

Trust me there's no envy, just anger at the lack of prosection for those who desperately deserve it.  As for what's oozing from an orifice, that would be your kind.

Tue, 07/01/2014 - 11:44 | 4913944 Abitdodgie
Abitdodgie's picture

Kyle Bass he owns 4GS , the money behind it.

Tue, 07/01/2014 - 10:49 | 4913715 madcows
madcows's picture

The Enclave/Acadia/Traverse are the only 7 seat alternatives to the minivans.  And, they cost less, except for the caravan which is an absolute POS.  GM got that one thing right.  They gave a decent looking alternative to minivans but offered the same seating.  We'll see how it holds up, but right now I'm very impressed with the Enclave.  It cost less than a damn odessey or siena, and it's exceedingly quiet.

Tue, 07/01/2014 - 10:56 | 4913737 Overleveraged_a...
Overleveraged_and_Impatient's picture

Smart man. Those SUVs are big movers! You're right, Grand Caravan is complete crap and it's ugly.

Tue, 07/01/2014 - 11:07 | 4913782 yogibear
yogibear's picture

Plus Chrysler has issues with their engines. If your mopar engine takes 1 quart of oil every 1,000 miles the dealer deems it as normal rather than fixing it.

Tue, 07/01/2014 - 11:43 | 4913939 madcows
madcows's picture

We owned 2 caravans.  never had an engine problem.  But both vehicles had sliding door problems, trouble with the locks, trouble with the seatbelts, MAJOR RUST, and the AC needed to be replaced (THE WHOLE FUCKING THING, not just the coolant) at least every 2-3 years.  I was so disgusted with their lack of reliability that I will never buy another dodge / chrystler product.

The only brand I've ever had engine trouble with was Nissan.  The 2004 Altima engine died at 135k.  Modern engines should last until nearly 200k.  That car truly suckd.  it was a lemon all over.  AND, the dealer was a complete asshole.  Never again.  No Dodges, no Nissans.

Tue, 07/01/2014 - 11:28 | 4913880 g speed
g speed's picture

wow--8 vehics in June and on track for 90K+ ----thats 1K commish for you per/off the lot?  so car sales guys/gals rake 1K per 'kevorkianesque rolling sarcophagus."  --who whoulda thought--and you work nights and weekends too I bet---70-80hrs /wk---

sorry --I call BS ----  I'll bet you work in garage part of the dealership changing oil and stuff and get your info from your buddy who works the showroom---and car salesmen never never fib---

 

Tue, 07/01/2014 - 11:39 | 4913893 Overleveraged_a...
Overleveraged_and_Impatient's picture

Well I will take your bet and you would be dead wrong. I'd post my pay stub dated June 28th but I cant put photos on this site...

I work between 42 - 48 hours weekly. I have a salary of $32,000 a year ($600 a week) and the rest is comission and bonuses. I have Fridays and Sundays completely off. I also have 2 weeks paid vacation per year. I also sell a lot of USED cars which are not reported by GM.

Some cars do have 4 digit comissions but it only once in a while.

Tue, 07/01/2014 - 13:37 | 4914418 FieldingMellish
FieldingMellish's picture

You are not your job. You're not how much money you have in the bank. You're not the car you drive. You're not the contents of your wallet. You're not your fucking khakis. You're the all-singing, all-dancing crap of the world.

Tue, 07/01/2014 - 11:45 | 4913945 Dingleberry
Dingleberry's picture

overleveraged, not sure why you are getting hate mail. You are only telling it like it is as you see it.

Their new cars are better, but still not up to par.

They had to make a choice between paying high wages to unions and execs, or put cash into the product.

The results are obvious.

My buddy has 2 new GMs. Neither has broken down, but he does not like the cheap feel of everything. But hey....he got a small SUV for 22k.  And a truck for another 20k (with 5 cylinders?).  You get what you pay for. He will find out the hard way when he sees the rsale value of his cheap vehicles.

 

However, I cannot remember the last time I saw ANY late model car from ANY company on the side of the road. It just doesn't happen like it used to. Thanks to the Japanese competition.

 

 

 

Tue, 07/01/2014 - 11:48 | 4913964 Abitdodgie
Abitdodgie's picture

New cars = lots of gas and only do 97 mph and then they cut out.

Tue, 07/01/2014 - 11:56 | 4914011 Overleveraged_a...
Overleveraged_and_Impatient's picture

Yeah it's ok. Zero Hedge as much as I love this site paints a bad picture of GM and the haters are gonna hate. No worries.

Tue, 07/01/2014 - 14:18 | 4914537 Atomizer
Atomizer's picture

 

Best car commercial ever: Fuck you 
http://www.youtube.com/watch?v=U1dUk8x2XkA

 

Tue, 07/01/2014 - 19:06 | 4915596 Overleveraged_a...
Overleveraged_and_Impatient's picture

Haha that is an absolutely hillarious commercial

Tue, 07/01/2014 - 11:12 | 4913805 Atomizer
Atomizer's picture

The next alternative to driving a soccer mom van. Has anyone rented a GM equinox for personal travel? It sounds like you’re traveling on the roof of the car. Extremely noisy cabin db. POS manufacturing quality.

Tue, 07/01/2014 - 11:37 | 4913915 Atomizer
Atomizer's picture

Madcows,

Beg to differ with you. There are alternatives to 7 seat. My bitch sitting in the garage is a 2008. Sure, you can outdo my 7-10 MPG. I just don't give a fuck. I can afford it, you cannot.

http://www.lincoln.com/suvs/navigator/

Tue, 07/01/2014 - 11:49 | 4913968 madcows
madcows's picture

Lincolns have very bad reliability ratings, though I've never owned one.

There are a number of cars with "Seating for seven", but the third row is only accessable by climbing over the second row, or going in through the rear.  We tried the Explorer.  It's tiny inside, and the kids had to climb over the seats, or fold them twice to squeeze through.

The Buick Enclave had bucket seats in the middle, and a bench in the third row.  There are Larger SUVs that feature the same seating but they're $60 (Yukon, Tahoe, Suburban etc...).

Tue, 07/01/2014 - 11:49 | 4913974 Abitdodgie
Abitdodgie's picture

Even if you can afford it , why?

Tue, 07/01/2014 - 12:01 | 4914044 Atomizer
Atomizer's picture

After you fucked over a GM bond holder, you loose a customer forever. Get over it. I hope you and the union go bankrupt.

Tue, 07/01/2014 - 11:17 | 4913831 FieldingMellish
FieldingMellish's picture

Lots of GM defenders on here. As an owner of a GM vehicle I must say I think they are absolute PIECES OF SHIT! The dealers are slimy salesman who use gimmicks and tricks to get people to buy their crap (par for the course in the entire industry), the engineering is shoddy and often sup-par, the quality of the materials used is poor and the repairs are outrageously expensive and, again, often shoddy.

So many higher quality alternatives out there, why buy a rolling sarcophagus?

Tue, 07/01/2014 - 11:28 | 4913882 Overleveraged_a...
Overleveraged_and_Impatient's picture

Stop... just stop.

Your entire comment can be copied and pasted to the hate page of any automaker brand

Tue, 07/01/2014 - 11:46 | 4913952 FieldingMellish
FieldingMellish's picture

Not really. I have owned other makes both import and domestic but none of them have had reason to make me regret my purchases. Looking at their offerings recently, I think the quality of engineering and materials has taken yet another leap downward and the number of recalls backs me up on this.

 

Interesting that you feel the need to reply to any negative posts on this thread. 

Tue, 07/01/2014 - 11:49 | 4913973 Dingleberry
Dingleberry's picture

Over...if you think you are going to get a bunch of Honda owners to say this, you are mistaken.

All dealers have repair bays.

Some are busier than others, and more shaddy too.

The domestics still love them repair scams, er bills.

Tue, 07/01/2014 - 11:55 | 4914006 FieldingMellish
FieldingMellish's picture

Still have my 89 Accord hatcback (since new!). Looks good for a 25yo car and so easy to repair (on the rare occasion it needs one).

Tue, 07/01/2014 - 11:51 | 4913983 Abitdodgie
Abitdodgie's picture

I would always stand by Toyota untill i got a Toyota Seqoua what a pice of shit.

Tue, 07/01/2014 - 12:53 | 4914223 MeMongo
MeMongo's picture

isn't there countless automotive sites where you Bitchez can go circle jerk youselfs? For Christ sake move on, or get a room!

Sheesh!

Tue, 07/01/2014 - 11:45 | 4913938 g speed
g speed's picture

I own a 91 Chevy WT 1500 that sits out in the sun in FL---It has no--I repeat--NO interiour left-- the seat was rebuilt by a local lady who does that, but the dash and door panels (and all plastic ) are completly gone (just the gage panel remains) --the glass fell down into the doors (junk yard fix) ---it still runs though--180K miles (with a few fixes like alternator and radiator and hoses etc) I needed a sledge hammer to get the rear brake hubs off for a brake shoe change out--rusted together.   Its ok for around the farm--but I don't take it on the Interstate--

and they're made more cheaply now? 

Tue, 07/01/2014 - 11:36 | 4913916 post turtle saver
post turtle saver's picture

ABP --> add filter --> ||grllopa.com/* --> haha suck it

Tue, 07/01/2014 - 11:47 | 4913919 Dingleberry
Dingleberry's picture

GM is getting all the bad news out at once.

Their numbers don't lie. They are still selling like hotcakes.

Because they got in on the ground floor in China and South America.

They sell more cars overseas that in the US. And this trend will no doubt continue.

Yes, their cars are made of cheap shit. Just like most other domestics. Crap plastic, hard seats, etc.

They became a bank in disguise, and got burned by the crisis.  They lost money making cars, and may still do.  Their money came from financing. In fact, you cannot not get a car for a certain low, low price unless you financed.

This biz model may be changing now that the gov gave them billions. Or more accurately, the unions.

Perhaps they will focus on autos again, now that they have half of their divisions left. 

We live in Wal Mart world, and if people can save a dime, they will buy it, consequences be damned.  

As long as GM makes cheap shit cheaply, they got no worries.

See you at the repair shop for the recall.

 

Tue, 07/01/2014 - 11:52 | 4913987 g speed
g speed's picture

An interesting part of the graph is the Cadillac sales---Cadillac went big in China with manufacturing and sales---could this be another little glimpse into the China situation?? --just askin--

Tue, 07/01/2014 - 12:34 | 4914153 NotApplicable
NotApplicable's picture

Step 1: Purchase GM fleet

Step 2: Purchase life insurance policies on drivers

Step 3: Profit!

Tue, 07/01/2014 - 13:13 | 4914304 theyjustcantstop
theyjustcantstop's picture

i remember the 1979 chrysler bail-out, all you seen driven for police cars, and every govt. worker was a dodge, or chysrler. 

couldn't pass a gas staion without seeing 1-2 govt. cars getting gas, and that was during the oil-crisis, thats the reason they couldn't sell their product, they got 1/2 the mpg as other cars.

to put gm, and sustainable in the same sentence is a large leap, or know nothing about the former gmac, and their present fincial arm.

Tue, 07/01/2014 - 13:27 | 4914345 Iriestx
Iriestx's picture

So wait, a car company owned by the government is selling cars to itself?  How the fuck does that work?

 

As for the people that own GM cars... you bought a car made by the federal government and you're surprised it's a piece of shit?

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