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GM Channel Stuffing Surges Most Since November 2013
Moments ago, GM was pleased to report that its dealers delivered 226,819 vehicles in the United States in October leading to "the company’s best October sales in seven years." GM added that Chevrolet sales were up year over year on the strength of the Silverado, Cruze, Traverse and Equinox, and "Buick had its best October in more than a decade." Alas, Cadillac did not, October sales tumbled -8.0%, and are down -4.6% on a YTD Y/Y basis. Bottom line: total GM sales increased a tiny 0.2%, well below the 3.1% expected.
But it could have been much worse if GM had not resorted to its favorite sales "boosting" gimmick: channel stuffing. Indeed, as GM reported, in October, total units at dealer lots, rose to 792,489, or a whopping 94 days supply, up from 753, 928 (81 days) in September, and up a whopping 8.9% from the 728K in October of last year, when, again, sales were only 0.2% lower. This was the biggest one month jump in "dealer stuffed" vehicles since November of 2013.
Expect to see much more channel stuffing into year end, as the subprime-funded purchasing tide crashes, now that regulators and authorities are aggressively looking into a surge in subprime loans to fund auto purchases.
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Clear signs of an automobile recovery...clear signs
...Buy two new GM cars, get one free...plus No down payment until Jan 2020
sarc off
They may actually resort to something like this soon! This might actually be a good idea! LOL You should send en email to the marketting department of GM!
GM has been doing this channel stuffing/fleet sales/rebate technology crap for as long as I can remember. They haven't learned a damned thing. Invest in them at your peril.
I saw an ad saying all Chevys at 0% for 60 months. Oh yeah, I'm sure people financing Chevys for 60 months are all super credit worthy to the point of having no risk of default hence 0%. Yeah, right, this isn't just total bullshit.
I commented about this a while ago -- it is total bullshit, they just need the first payment to clear and then the loan is off the car side's books. My brother works with a dealer where one of the sales guys has sold his fifth repo to the same couple who figured out the scam and realized that no one is getting blacklisted. So they buy a new vehicle every 6 months or so: make a single payment, wait for the repo man, and then do it again, over and over. Every party to the transaction is aware of the situation and it still goes through -- insanity and total BS alright.
Neither Ally Financial nor AmeriCredit will finance anyone with a repo in the past 12 months, period. If they do happen to have a repo over 12 months ago, they may get approved for a very small car loan ($8,000-$12,000), with a huge equity position at an exceptionally high interest rate and only if they can satisfy every standard, bad-credit stipulation (POI, POR, employment check, phone interview, etc.). If the guy repo's this 2nd car, the bank wins because they were in a high equity position; the car goes to auction and the bank collects the equity. If the car happens to sell at a loss, the bank sues the owner for the deficiency balance. At this point, there are no lenders that will consider him, at any interest rate, for several years. Maybe after a few years, a guy with 2 repos might be able to get financed at a buy-here, pay-here used lot that has in-house financing at 29.9% and a kill-switch on the ignition if his automated, bi-weekly payment goes 1 minute late.
Also, when Ally Financial issues a 0% loan, they are heavily subsidized by GM. Meaning, GM gives Ally Financial the $2500-$6500 rebate the transaction qualifies for, instead of giving it to you. This is why you are always getting 0% IN LIEU OF rebate money. There is no such thing as a free lunch.
Lastly, this article is a little misleading. The cars reported sold this morning are deliveries to real, end-users. Real customers. This is clearly stated in the press release. It says, "dealers delivered 226,819 vehicles in the US in October....."
http://media.gm.com/media/us/en/gm/news.detail.html/content/Pages/news/u...
It does NOT say, "GM factories delivered to dealers 226,819......"
In other words, the cars sitting on the dealers' lots at month-end are NOT included in the retail, government or fleet sales reported today. They are mentioned separately, as part of dealer inventory, exactly as it should be, and exactly as every manufacturer reported today. If you notice in ZeroHedge's inventory chart, there is always a bump in inventory in October and November because November and December are typically very good retail months in the car business.
If you think I'm lying and Zerohedge's article is correct (channel stuffing is propping up sales figures), simply buy GM stock. Here's why:If the stock goes up, you WIN. If the stock goes down, YOU WIN. You can argue Zerohedge's point that GM is reporting dealer inventory into their sales figures (channel stuffing), while their press release says the exact opposite, as I clearly pointed out above. If you are to believe ZeroHedge's position, you are suggesting that GM is caught in a MASSIVE LIE and, if true, GM would be sued into bankruptcy.... you'd win a huge class-action, shareholder settlement.
You indeed ARE the new incarnation of that pissant Max Fisher.
First I was guessing because of the pompous prose and pretentious avatar. But now your defence of GM leaves no doubt.
Your previous incarnation left when Tyler showed you to be full of shit. Now you're back under a different name, and still full of shit.
If shouldn't matter who I am; all that matters is the content of my commentary.
To be perfectly honest, I like Zerohedge, even if I don't always agree with their articles. If someone doesn't agree with a particular article, that person should have the freedom to voice their opinion. Or are you wanting the North Korea of internet blogs?
Additionally, i think the comments section would be a more informed community if there were more comments pointing to "other" side. There is far too much of an echo-chamber around here. You guys should embrace a different perspective and different sides of the debate, whether that opinion comes from "Max Fischer," "CognacAndMencken" or someone else.
AGAIN:
"[A]s GM reported, in October, TOTAL UNITS AT DEALER LOTS ROSE TO 792,489, or a whopping 94 days supply, up from 753,928 (81 days) in September, and up a whopping 8.9% from the 728K in October of last year, when, again, sales were only 0.2% lower. This was the biggest one month jump in "dealer stuffed" vehicles since November of 2013."
Comprende, Max Fisher?
Reading is fun-derrr-mental.
Edit in: You completely erased/edited your prior post. My response below is to your original post which was factually incorrect. Obviously you figured that out, and that's why you deleted the entire thing.
Here's my response to your original post:
You are, once again, confusing two sales numbers.
Retail sales reported today: GM's sales figures released today are the retail sales that dealers sold to end-users, as I clearly stated. GM and all auto manufacturers reports these "franchisee" retail sales numbers monthly, sometime in the first few days of each month.
2nd set of sales numbers: When GM CORPORATE records a sale for their accounting books, they count it sold when it is delivered to the DEALER. This report comes out quarterly when GM CORPORATE reports their earnings. This is NOT what was reported today.
And by the way, not all dealers floor plan with their parent company. This is a grey area that varies from one dealer to the next. Some dealers finance their inventory with normal banks like Chase. Other dealers have different arrangements with their parent company and can carry the inventory for free for 30 days, or other such arrangements.
Here's a simple question: Did GM dealerships have nearly 800,000 new vehicles sitting on their lots (on a consignment basis) as of October?
...they are bought, typically with financing, not consignment.
Vehicles ARE NOT BOUGHT by dealerships. They are held as collateral AND inventory, to be sold, then paid off:
http://www.sba.gov/content/what-floor-plan-financing
What is floor plan financing?
Floor plan financing is a revolving line of credit that allows the borrower to obtain financing for retail goods. These loans are made against a specific piece of collateral (i.e. an auto, RV, manufactured home, etc.). When each piece of collateral is sold by the dealer, the loan advance against that piece of collateral is repaid.
In short, ***Dealer Floor Plan financing allows dealers to borrow against retail inventory. The dealer then repays that debt as they sell their inventory and borrows against the line of credit to add new inventory.***
It all comes back to warping the cost of debt. It is like a drug addiction that will end badly.
Who in there right mind would pay 85k
For a Escalade
http://www.edmunds.com/cadillac/escalade/2015/?sub=suv&zip=70508
Fuck that
For that kinda coin I would buy a Mercedes diesel van
Tides crash and waves receed ior is it the other way around?
Manufacturing revival. Buying is optional.
Thanks to QE.
You produce, we print and we meet half way?
Straight out of the Kremlin's playbook!
"Moments ago, GM was pleased to report that its dealers delivered 226,819 vehicles in the United States in October leading to "the company’s best October sales in seven years."
thats 226,819 vehicles to be recalled in 60 days lol
Planned - Procured - Financed - Manufactured - Sold-in to Dealers - Shipped - Parked in Lots - Shuffled Around Markets - Leased to Muni's - Beaten Up - Returned - Refurb'd - Shipped - Parked in Lots - Leased - Beat Up - Returned - ad infinitum....
They call this misallocation of capital. My question is, where is that great graveyard in the desert of rotting Aztecs and Arcadias?
"Cadillac dealers have a 152 day supply of the ATS, while the CTS stands at a 215 day supply."
Very healthy inventory levels, there, Government Motors.
http://autoblopnik.com/2014/08/29/gm-explains-slow-ats-cts-sales/
Announcing The Bring Your Pulse Cadillac, Chevrolet, Buick, and GMC Red Tag Month, Where Horribly Qualified Life Forms Can Lease Any Vehicle Of Their Choice for Whatever Change & Pocket Lint They May Possess On Their Person. You Show Up, Fog A Mirror, Sign & Drive!"
It's too bad really, because the motors in those Cadillac's are sweet performing mills.
The only one that's remotely ok is the 3.6
Both the 2.0T and the 2.5 liter (especially) feel positively tractor like compared to the 2.4 liter in the Honda Accord, a car that's 1/2 as much and 5x times as reliable/good.
Cadillac/GM sucks ass.
I'm not sure about your sources. I'd like to see comment in a trade publication or perhaps a financial report. TMZ might be a better source than "Auto Nudes", who autoblopnik quotes.
I'm looking for accuracy here not excess balderdash.
from the article:
"Automotive Nudes recently reported that Cadillac dealers have a 152 day supply of the ATS, while the CTS stands at a 215 day supply.
http://autoblopnik.com/2014/08/29/gm-explains-slow-ats-cts-sales/
How about GM Inside News? Does that work for you?
http://www.gminsidenews.com/forums/f15/gm-idle-ats-cts-plant-3-weeks-cts...
"DETROIT -- General Motors will idle the Michigan plant that produces the Cadillac ATS and CTS for three weeks amid a glut of inventory.
GM spokeswoman Erin Davis said the company "does not comment on production schedules" and that it is "matching supply to demand."
The move comes as U.S. sales of the ATS and CTS sag, pushing inventories to unusually high levels.
...There were 15,100 ATS sedans on dealer lots or in transit, or a 152-day supply based on the recent selling rate, according to the Automotive News Data Center. CTS inventory stood at 16,900 units, or a 215-day supply.
Dealership lots also are swollen with excess supply of Cadillac's two other passenger cars: The XTS sedan, assembled in Canada, had a 152-day supply; and the ELR plug-in hybrid's inventory stood at 1,400 units, a 194-day supply at the coupe's glacial selling pace."
Yeah but this was August. They are back on line since September.
Do you have the updated glut numbers?
GM Employees on Inside News are reporting that dealerships don't even have a single 2015 model on dealer lots yet because the absolute oversupply of 2014s is so massive.
The highest inventory I have been able to find is 94 days, see GM's report, link attached. I don't think you know how to count.....
http://davidstockmanscontracorner.com/trouble-brewing-in-auto-land-gms-d...
But it could have been much worse if GM had not resorted to its favorite sales “boosting” gimmick: channel stuffing. Indeed, as GM reported, in October, total units at dealer lots, rose to 792,489, or a whopping 94 days supply, up from 753, 928 (81 days) in September
http://media.gm.com/content/dam/Media/gmcom/investor/2014/nov/GM-Deliver...
Of course you are refering to specific models of Cadillacs. A broader look at inventories indicates GM is working with 94 days of inventory. It doesn't support your bombast but it is more relavent than what one specific model's inventory is. Let's try to find relavent data not bluster..............
What is your problem? That I pointed out the insane glut of the Cadillac ATS and CTS, both of which are overpriced, half-baked, pieces of shit, that few people are dumb enough to buy?
Get it right sunshine! accuracy matters.
Inventory on dealer lots is cheaper to recall that cars in possession of customers. #bullish
an interesting business model...
gm makes NIM on cars that are sitting on dealer lots via gm financial loans to dealerships...then gm also makes NIM on the gm financial installment sales contract.
Of course, key to NIM is cheap debt and securitizations ... so ideally would make/sell/securitize as fast as possible before the cycle turns.
More anti-dollar news in case you missed it:
Sydney set to become yuan hub, clearing bank appointment eyed* China's central bank to appoint clearing bank Nov 17
* BoC, ICBC, CCB & BoCom, AgBank vying for role
* Deal would include bonds, FX and equities
http://www.reuters.com/article/2014/11/03/australia-china-yuan-idUSL3N0S...
"This was the biggest one month jump in "dealer stuffed" vehicles since November of 2013."
Wonder if this is a cyclical pattern related to some kind of annual event. Or just a shitty economy. Would be interesting to see if the pattern holds in previous years.
see my comments above.
Obviously prepping for the Obamacar program. You need the phone to get an interview and a car to drive there. God bless Amerika!
The official Obamacar will be an Escalade with 22" wheels that keep spinning even while the 'Slade is at a stop.
The Reggie Love trim level gets the owner red shag carpet, silk velour headliner, 24 ashtrays, and a fully stocked body oil cabinet with fold down massage table.
22's are GM option so need to.go to at least 26 spinners
.
.
I'll take a risk at being a contrarian (never a safe venture on ZH).
I bought a GMC Sierra Crew Cab 4x4 last January and could not be more pleased. Gets great gas mileage for a truck that size, has not demonstrated any mechanical/electrical problems, hauls my Kubota L3800 up and down the hills of Northern Arkansas without difficulty, and just plain looks great. Have taken it in for two recalls (timed those with oil changes/tire rotations); the first recall was a one-time check on a transmission fluid line torque, and the second was to reprogram a computer to prevent an uncommanded transmission case shift. Both recalls were unremarkable; and my truck never suffered any of these conditions before the recall anyway.
I'm a satisfied GM customer. Hope they can sell all this inventory. Would be nice if we had some good news about the American manufacturing sector for once.
"The Chevrolet Silverado and GMC Sierra twins rank low on the list compared to other pickups, with only 40 percent of their parts being made in America."
http://gmauthority.com/blog/2014/02/just-how-american-are-gms-trucks-suv...
"Posted 09 December 2013 - 05:21 PM
Just found out today that my LTZ was made in Mexico! I looked at the window sticker and it reads, assembled in Mexico. Thought they are made in Flint Michigan? Still love the truck, but come on GM, really?"
http://www.gm-trucks.com/forums/topic/155754-made-in-mexico/
Hecho En Mexico. Like a rock, Senor. Si.
Yeah, that's my chief complaint too. But then, if I were in GM's executive commitee, and had to choose between Hecho en Mexico and UAW, I'd seriously have to think about it.
Check out jameson18's comment below. Wow. We've got some real winners reading ZH these days.
You couldnt give your truck for free.....
Not to be a dick but your ignorance is astounding.
Gm stole money out of your kids pockets and I guess that's okay with you.
Well, who didn't see THAT coming like a mile away?
You gotta thumbs-up from me on that one. The GMC full sized Sierra is (in my opinion), the best looking full-sized pick up out there right now. And I'm generally a 'Ford guy' when it comes to pick ups. And the mills are smooth as silk and will last 300k easy if you take care of them.
Wow... almost two years and only 2 recalls. Check back in 5 years. I'll bet you can't even keep it that long.
And you base that unsolicited opinion on what body of evidence or knowledge?
Mary? Mary? Hey Mary Barra, don't you have a job to do? Why posting here?
You bought a truck and like it!? We on ZH don't take this kind of shit laying down. Off with this man's head!!!
Too damn bad the company was stolen from the stock and bond holders, then subsidized at my expense so you could buy that sweet car. I may come across as selfish but I'd rather you buy your own car with your own money.
Just a thought!
I'm not a fan of bailouts either. I do know, however, that my truck is being paid for by me. I write the check every month. Obama didn't buy it for me.
I also know that, to paraphrase a recent Chronicles author, if one wants to live in a nation that manufactures things, one should buy the things his nation manufactures.
This is something that seems to be lost on 90% of the commenters on this site.
We know you are factually incorrect. We know that all of its steel and most of your truck's parts was not made here. It was made in Taiwan, Japan, S.Korea, Mexico, a mish-mash of central American Countries, China, India, Malaysia, Vietnam, Canada, and then some assembly was completed here in the USA. Mostly elsewhere though, so no, you aren't supporting our "manufacturing nation". How cluless can one be?
As to what you paid for it; the price you paid did not include the $50+ Billion in subsidies and other losses that I and the rest of US taxpayers pumped into GM that will never ever be recovered. Ever. That money was printed/taxed/embezelled to prop up the organization that stole the company from it's rightful owners.
As we see, you have no idea who paid what all for your special little truck. You are just another muppet who thinks he is doing something rightous by signing a document at your local Chevy dealer that allowed you to take that special little truck home. You sir didn't buy a damn thing! The rest of US did; INCLUDING, the 90% of the commentors on this site you seem to have contempt for!
So you have that going for you..........and your special little truck.
Taking that argument (and it wasn't much of one) to its logical conclusion, and nobody should ever buy anything from any company EXCEPT foreign ones with approximately zero chance of being subsidized, bailed out, eased, etc. by the US government. Nobody should EVER buy Ford, GM, Cat, Apple, Microsoft, Stihl, IBM, etc. because the taxpayers spent - or might spend in the future - "$50 Billion in subsidies... that will never ever be recovered. Ever."
This line of thinking is insane. You are the one who is clueless. If your disapproval of government intervention, ie. bailouts, prompts you to reject the notion of buying from this American company altogether, then you have no idea what logical argumentation looks like.
If you don't like the fact that sizeable portions of the American manufacturing sector have been offshored to places like Taiwan, China, and Mexico, why in the world would a reaction to that include... not buying GM? How may the offshored parts of my "special little truck" be brought back onshore, unless domestic demand (from guys like me) increases to the point that the transit time from China to the US interferes with production, thereby making it more cost-effective to make the steel, electronics, etc. back here?
Quit looking only 6 inches in front of your face; and look at the big picture.
Thank you for your response CANFLY. Since you know I am correct in my points you decide to talk about other companies and other circumstances. You can't debate the topic so you change it. Very typical of those who support corrupt business/government relationships. I don't support corruption in business or goverment so I choose to stick to the issues. To each his own.
Now back to cases.
First, you started this conversation by saying that having the tax payers buy you your special little truck was supporting our "manufacturing nation". It isn't so we have dispelled that silliness. You acknowledge that if you took away everything that originated off shore from your special little truck you would have about enough product left to fill a fifty gallon drum (even the plastic spec'd on your little truck is mfg overseas as well as the fabrics). I really don't care what special little truck you buy I only ask that you pay for it yourself. Don't make me, my neighbors, my kids, and every other tax payer in the nation buy it for you. Which you did.
Second, this conversation is not about Apple, Cat, Microsoft, Stihl, IBM or any other US corporation it was specifically about GM. GM is a problem specifically because it was stolen from it's rightful owners, Stock and Bond holders at the time of the GM collapse. Your purchase of your sweet and special little truck was a support of that corruption, plain and simple.
Don't piss on my boots and tell me it is raining.
Are you illiterate?
I'm done trying to talk sense into you. You use strawman arguments. You lie about what I wrote. You repeatedly refer to yourself as "we" to imply superiority, ignorant of the fact that educated people see weakness in this rhetorical device. You're incapable of seeing the end result of your bizarre line of thinking.
I'm done with you.
I know you want to make this about "buy American" it is not. It is about GM was stolen, in fact Nationalized, from its rightful owners. Since you are tolerant of that we aren't going to agree. I suppose we all have different thresholds for what we are willing to steal or imbezel from our neighbors. You are simpy willing to steal a truck. I'm not.
I have great pitty for you.
Theft is bad:
http://www.forbes.com/sites/realspin/2013/11/14/the-governments-bailout-...
"The survey, sponsored by the National Legal and Policy Center, was conducted in Texas, the leading state by far for pickup truck sales. Pickups are important because they are one of the most lucrative segments of the automakers’ lines, meaning strong sales are essential to overall profitability.
More than 60 percent of respondents said the fact that GM had taken bailout money would influence their decision on what brand of truck to buy. This news comes as GM says it hopes to send 40 percent of new Chevrolet Silverados to dealerships in Texas.
If the bailout was such a big success that President Obama could use it as a major issue in his reelection campaign last year, why isn’t GM’s stock isn’t worth more? Why is it increasingly unlikely that Obama’s prediction that taxpayers will make money on the bailout will come true?"
"We’ll never know where GM would be today if it had been allowed to go through bankruptcy in the ordinary way. But there’s no reason to believe the current management, appointed by Washington politicians, has been more competent than the executives who might have taken over following a Chapter 11 reorganization."
http://nypost.com/2013/12/16/general-motors-bailout-vs-taxpayers-loss/
"The problem is that the real costs of the bailout are both higher and hidden. For one thing, bailing out a carmaker was certainly not what Congress had in mind when it passed the Troubled Asset Relief Program. For another, the political nature of the intervention ensured that when the claims were sorted out, politics guided the decisions as much as economics. That’s why the United Automobile Workers Union made out and certain creditors did not."
http://www.foxnews.com/opinion/2012/05/18/what-gm-bailout-really-cost-am...
In addition to the more than $50 billion given to General Motors in the bailout, the Obama administration quietly snuck in a special tax break for GM, which allows the company to write off approximately $45 billion in post-bankruptcy losses against post-bankruptcy profits.
The result? In 2011, GM paid nothing in federal income taxes despite claiming record profits of $7.6 billion, the “highest profits in the 100 year history of that company” according to President Obama.
In fact, that’s not quite right. GM paid a tax rate of negative 1.5% on its record profits – less than nothing.
That’s right, while you were paying your income taxes last month, the IRS was sending General Motors a check for $110 million. And GM’s tax break is a gift that will keep on giving every year at tax time.
It’s good for twenty years.
As with the original $50-plus billion bailout of General Motors – and the $7,500 Chevy Volt tax credit that goes to people with an average income of $170,000 a year – this multi-billion dollar tax gift comes at the expense of ordinary taxpayers who lack GM’s close connections to the White House.
How did this blatant example of crony capitalism come about?
GM’s tax break arises from the Obama administration’s distortion of legitimate tax provisions which allow companies to use prior-year losses – of which the Old GM had plenty – and certain other costs to reduce their current-year federal income taxes. In Section 382 of the tax code, Congress limited these "net operating loss" (NOL) carry-forwards to discourage the buying and selling of tax deductions.
As a result, New GM could not have written off the Old GM losses that were discharged in the bankruptcy. However, as Harvard Law School Professor J. Mark Ramseyer and Indiana University’s Dalton Professor of Business Eric Rasmusen explain, the Obama Treasury Department “‘solved’ this problem by issuing a series of ‘Notices’ in which it announced that [Sec. 382] did not apply [here].”
Because companies like GM that file for fast-track bankruptcy without affording due process protections to creditors don’t normally get to preserve NOLs, Treasury’s unprecedented Notices allowed GM “to retain the cake while eating it,” notes Duke Law Professor Jeffrey Coyne.
Though the Treasury Department “had no legal or economic justification for these Notices,” according to Professors Ramseyer and Rasmusen, a GM spokesman tried to justify the company’s negative income tax rate by noting that GM pays “other taxes,” including “taxes around the world.”
Are we supposed to be reassured by knowing that GM only stiffs American taxpayers?
The Channel has been Stuffed across the board
Recesssion near at hand
I noticed they are advertising 72 months for 0.0 apr. That's 6 years guys! The car's designed in obsolesence is shorter than that. This is pure despiration.....
Fog a Mirror Special GM Financing Plan
They've got the roads all tied up out here with what looks like high rises going up for long term auto storage next to the lots.
Won't that slow down the "hail storm / insurance payout" side of the business?
I think the next round of QE will be infrastructure and cash for clunkers 2....... there really arent any more bonds to buy, and even attempt to call it a market, so unless they go for corporate paper, or ETFs, then its these type things....
Fuck the housing manufactures, car manufacturers, computer manufacturers, bullshit numbers manufactures, which included both the feral Federal Reserve and our feral federal government, until the lying and graft stop. Vote with your wallet, starve the beasts.
any car dealers around? I would be curious how much the max is more or less that a dealer can store at the average location. 100 days? 120 day? there has to be a limit.
the only channel gm is stuffing is the collective anal passage of the country.
USD $4,000• 5,000 rebates begs Union failure on new car sales bullshit that people don't want. Moar Democratic monies are needed to throw good $$$ at bad business models.
Welcome to Marxist Crony Capitalism Rule of Law.
You ever talk to an autoworker? LOL
by 2020, one of gm, fcau, or f will not exist.
Where are all these POS cars being stored?
Every empty strip-mall, bowling alley and Kmart parking lot within 5 miles of the dealer. I drive by these places and wonder just how could they ever find a particular car if they had to.
At least I get some practice chasing down the salespeople who are constantly running across the street, ferrying vehicles to and fro. A couple of them are even starting to lose their gut from the workout!
I commented on this months ago. Empty mall and commercial building parking lots is the choice du jur in my area. Used cars and new cars piling up.
Yeah, but they're now constructing a billion dollar solar farm on top of their beclouded ----90% of the time ------Lordstown Ohio ( you know, the Sun State of the midwest) plant that will provide an Eye-popping .05% of their energy needs in the year 2525.
And you all think GM is a dawg.
You can likely find the link to Solyndra, theBamster, and GM somewhere in the White House Tapes.
Lordstown is a antiquated facility. That's why they build Cadillac and other brands in China/Russia. Newer facilities. The Unions ran the Ohio location into the ground. Chrysler in Twinsburg, OH and the Ford engine plant on Brook Park Rd in Cleveland, OH. The union maggots no longer have a job.
They killed it on their own. Lawsuits and petty grievances cases blew away the union piggy bank.
Fuck the union, welcome to reality.
Is Mexico on Russia's sanction list. If it isn't couldn't they just set up a tent and sell them the vehicles since Germany can't sell BMWs, Audi's or Mercedes. Each pickup truck comes with the bed full of cases of vodka (damn, I'm a marketing genius).
GM will start the Globalisation process of building cars in Africa. New Hepa auto cabin filters will become a standard to combat Ebola infection. The people that write fear are the ones who loose subsidizing taxpayer monies to create new products for derivatives, re-monetizing unpayable debt.
not only turkeys are stuffed in November
Not sure I will be any more accurate than Gartman, but me feeling the economy is heading for a crash. Right now in my area, and have heard same around the country, multi-family housing is going up EVERYWHERE and cars being "sold" for $99 per month. I feel we are at the top of a cyclical "boom" and the vacuum on the other side will be huge. Easy credit for consumers is no issue at all. Autos are being rented at cents on the dollar and it doesn't take outstanding credit to rent an apartment, especially when the apartment was just built and it is empty. The whole thing reminds me of 1999 when everyone was updating their technology for Y2K issues. This left a gaping hole in demand on the other side as everyone had already updated their computers, servers, etc. This, coupled with a stronger dollar is going to crunch revenues and profit margins. Look out below!
I hope that one of the after-effects is a return to QUALITY. Maybe an economic crash will scare everyone enough to realize that more of something crappy is NOT better than one or two well-made things.
A market of renters doesn't do the kind of accumulating that settled people in established neighborhoods do. People who don't intend to buy a lot of something tend to demand better quality.
I would LOVE to see all the Walmarts and Dollar stores go away, replaced by a multitude of smaller, unique businesses, who do one thing REALLY well at a fair price, instead of doing 1,000 things poorly and cheaply.
GM vehicles get recalled straight off the lot. They need a bigger inventory...
And in breaking news, GM announced earlier today that it was issuing a recall for all vehicles they intend to make in 2016, and are considering recalling their entire production line through to 2020. In a conference call to shareholders, CEO Mary Barra said, "We intend to be more aggressive going forward, more pro-active. Why wait for these vehicles to actually start killing people, and be seen as being forced to recall them? That puts us on the defensive. Why not front-run the issue and do the recall first? Send a message to the GM buyer..."Yeah, the car is crap, but we got your back, so what's your problem?"...Which is the theme of our new advertising campaign. And now let me introduce our director of marketing, who will explain it all to you..."