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.

 

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