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Why GM Is Back Below Its IPO Price - Pictures From GM's China "Parking Lot"
Despite broad and deep price cuts introduced earlier in the year, GM's sales in China were roughly flat in June continuing the streak of weakness since March (when GM changed its reporting to retail sales from wholesale delivery). This is the weakest start to a year for China auto sales since 2012 and GM's share price is now back notably below its 2012 IPO price. Judging by the massive volume of cars 'parked' in GM's Shenyang Liaoning lots, it is clear that automakers learned nothing from the last "if we build it, they will come" channel-stuffing inventory surging dysphoria that, among other things, led to their last bankruptcy... if only Chinese buyers would take up the credit terms like Americans.
GM's stock is back below its IPO price...
As sales in China slump... (as Reuters reports)
General Motors Co vehicle sales in China were roughly flat for June as broad price cuts introduced earlier in the year failed to boost demand.
GM and its Chinese joint-venture partners sold 246,066 cars in June, virtually unchanged from the same month a year ago, the U.S. automaker said in a statement on Monday.
That compares with a 4 percent year-on-year drop in May sales and a 0.4 percent dip in April, when the automaker switched to reporting retail sales rather than wholesale data for China.
GM has largely failed to counteract sluggish auto sales so far despite slashing prices on 40 models in May by up to 20 percent, as China's economy grows at its slowest rate in 25 years. The automaker also faces rapidly shifting tastes among Chinese consumers, now showing a pronounced preference for small, affordable sport-utility vehicles.
As it appears there just is no more room to stuff inventories in its Shenyang, Lianing province parking lots (as China has become the new car graveyard over the last 3 years)
* * *
And with allthis inventory, sales are a problem...
For the market overall, sales for January to May rose only 2.1 percent from a year earlier, giving 2015 the slowest start since 2012, according to the most recent statistics available from the China Association of Automobile Manufacturers (CAAM).
And finally, there is an even bigger probelm...
- *CHINA PASSENGER CAR SALES HIT BY STOCK-MARKET ROUT, CUI SAYS
- *CHINESE CANCELLING CAR PURCHASES ON STOCKS ROUT, PCA'S CUI SAYS
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*CHINESE CANCELLING CAR PURCHASES ON STOCKS ROUT, PCA'S CUI SAYS
Just BTFDYFIdiots
Look at all those white cars, racists.
Where are the Volts? We need to see the fucking Volts! Bammie negotiated a Volt Treaty so that everybody would have to buy a Volt or pay a fine. Every year. Including the Chinese.
Where are the Volts?
I remember when DCFusor would boast about his Volt, and attack anyone who would dare question the wisdom of a taxpayer subsidized $40,000 electric-hybrid car.
There's a Pontiac in there! Last built in 2010.
(Are these OLD photos?)
"Are these OLD photos?"
Yes they are. At least one dates back to 2009 and wasn't even taken in China.
http://finance.townhall.com/columnists/ricedelman/2009/05/07/a_final_wor...
I hate it when Zero Hedge fucks up like this, as they did with their last photo of "aerial view" of unsold cars that was years old, posted 1 or 2 years ago.
I do believe China's automotive market will crash (it's just begun), but these outdated photos tied to current events do ZH's credibility no favors.
Maybe the cars have not moved since 2009? Maybe in China every car lot has the exact same cars parked the exact same way and only produce vehicles from 2009? Maybe Zerohedge is all about what sells advertising and could care less about research or ethics? Nah, all three questions must be wrong.
Hush...this is not the same click bait story once again. And you should not get free bitcoin at: http://freebitco.in/?r=25727
cars make no sense to me.
steel gets dug out of the ground in china, or someplace.
then we melt it down, turn it into cars, put them in a big parking lot in china again, and pay people to stand around guarding it.
anyone watching from mars would be scratching their head.
hugs,
warren buffet
http://www.goodreads.com/quotes/546212-gold-gets-dug-out-of-the-ground-i...
Time to melt them down and start over again! Think of all the progress...
Gubmint Motors makes nothing I want to own or drive much less pay for.....
Tahoe/Suburban is a nice vehicle if you need a full size SUV.
Well, never in my life I would have thought I would once buy an American car. Until the time came some months ago to finally replace our 2001 Citroën Evasion with 260.000 km on the odometer. Since it's my wife who does 90 % of the daily drving it was up to her to choose the make and model - my part is to check if her choice is technically sensible. We always buy second hand, but it needs to be a low mileage car in good condition that'll keep us on the road for at least 10 to 15 years.
To my great surprise (and utter despair) she went for a Fiat Freemont aka Dodge Journey. True, this Journey underwent some major modifications (tougher suspension, redesigned dashboard, Fiat diesel engine) for the European market, but I must say I was highly suspicious because for some reason I always associate any modern American car with, well, utter crap.
And you know what? It turns out to be a great car, which cannot be merely attributed to the European specs: no, this means that the basic Dodge concept was well thought through. In fact, it's one of the best I've ever taken to the road.
So I guess you Americans still know how to make decent cars. You don't always feel like doing so, but you still have the skills.
The Chief called. He asked a one word question.
Pontiac?
Sure doesn't look like a Buick.
I had one. The radio would go off when I hit the brakes and there was a time where I had to steer with the volume knob.
Is bullshit. Note the "Pontiac" in the picture. When did they take these pictures, hmm?
Whenever these overstocked car stories run, they seem to contain outdated pictures. Pontiacs. Really? So, I guess the take away from this story is that somewhere in the world at some time GM had a lot of cars parked somewhere?
Yeah, one of the pictures is in obvious winter. Heavy coats and snow.
They can get current ones in the fields around car dealers in s.Florida.
Big fields full of them.Very 2008.
Take the pics and send them in to ZH.
Dear GM, You can keep your personal information gathering, automatic geo-locating, behavior tracking POS, I'm not buying one....ever.
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You almost think it might be better to wait until JADE HELM is over just to be on the safe side.
P.S. No more Central Banks run for the benefit of crooks, 100% reserve private banking system and no more supranational currencies (ie. euro or IMF-SDR's) after this sucker implodes and 99% of the problems are gone.
P.P.S. Focus the spying efforts of NSA and CIA on the Nation's bought and paid for Leaders and those who have bought them. Waterboard whenever necessary. On second thought waterboard them all just to be on the safe side...
If that shit isn't some kind of FBI operation to entice 'patriots' to do something stupid so they can get themselves arrested on terrorism charges like all those dumbass Muslim kids they keep arresting I will eat my dirty underwear I just worked out in.
Go spam elsewhere.
hey carl, that was my reaction, some gov't. agency
looking for rebels
They pay someone to take part in a drill with a fake bomb, except the bomb is real. The bomb goes off then they kill the "terrorist" or slit his throat so he can't talk. Then they go kill his friends who knew about the drill.
I ask again, what is this supposed to acheive?
Start a GoFund me requesting donations to raise an army.
spam spam spam spam spam spam
Maybe white Texans will wake up and turn off the Trayvon knock out game football because they are dumb sheep for college ball and the NFL. Whitey cheering on Tray Tray.
Also maybe Texans will start ax-ing questions about Waco 1 and Waco 2. I will not hold my breath.
Until whitey Texans start turning off Trayvon ball - they are all hat and no cattle.
I'd be more comfortable going back to the confederation. It's obvious that the constitution caused there to be less freedom and I'm pretty sure that's why we were done out of the confederation. See more here: http://home.earthlink.net/~gfeldmeth/chart.art.html
smh
Cash for clunkers #2.
Bigger and better.
This time offer $6500/junker.
Jagovs for Junkers?
This is China, It's "cash for crunkers."
Only three more bailouts over the next seven years.
rolling sarcophagus 4 u donkeys
Sponsor more demolition derbies,
I see a pontiac, why? Also of note.. Lots of white cars. Second to last pic, those don't look like GM cars.. but they could be Buicks or something.
GM owns Buick. Just saying.
Sir, I know that. That was mean of you to say.. Maybe my sentence structure was screwed up? I don't want to be mislabeled as "omg wats the GM make" 'guy'.. It's depressing. You have a good day, though.
edit: Just noticed that I was onto something by the initial "WTF pontiac" thought.. Apparently, these are older pictures. I feel better (kinda).
even if the Bank of China paid for all that...
GM = Gubmint Motors.
That is all.
De-unioninze GM. Take their pensions and give it back to the taxpayers . They should not be in business.
+100
Acres and acres of rusting GM-Obola-UAW shitboxes.
Oh come on, I see enough room in there to kick the can another 6 months.
Ho Ree Fuck! How in the fuck did even one of those little Chinese fucker get out of the car after parking it that close? That's the big story here.
I was thinking windows... although the last picture suggests the trunk.
Hahahahah . I think hollywood should make next Fast nd Furious in China enough cars to blow .
Too bad these photos are from 2013, and most aren't China -- http://www.usatoday.com/story/money/cars/2014/04/17/gm-judge-recall-do-n...
http://www.chinadaily.com.cn/business/motoring/2013-06/19/content_166381...
Nice find.
Exactly why I take this site with a grain of salt. Waiting for some more non labeled graphs saying crash. At least the comments are always entertaining.
grains of salt..
lime slice.....
tequilla........
got it.
At 2015 grains of salt, you need 32.185 lime slices to get below the $33 IPO. Now drank that Tequila because we are aiming for the GM symbol.
lol i thought i saw snow in one of those.
Look on the bright side, at least they are not tanks.
7th photo down. That's a Pontiac logo squeezed in.
1. Pontiac has been stopped.
2. How are the cars parked so close together?
How so close?...Stevedores' secret.
Man....those are some ugly-ass cars. The Chinese are simply insulted.
I like the vehicle on the left bottom. The silver one. No, the black one.
Ghost Cars are needed for Ghost Cities
But their ghost money is gone in stock carnage .
Bring some crab rangoon to the finance guys at the dealership and they will set you up with a real gem of a deal: 40 year loan at 14.99% APR with merely a pre-payment penalty equal to 50% of retail sales price if paid off prior to 20 years.
FREE GM CARS!!!
no thanks, I don't like them.
Put a Chinaman in each one with an Uber sign and they can employ a few milion until those shitboxes rust into dust like GM-UAW-Obaola shit is known to falls apart.
Will anything slow the Chinese highways of death or stop the Chinese shitting on the side of the road?
Buy stawks and soon you can buy a fleet of cars
Why don't they offer free margin loans?
Margin loan price riot! Get em while they last...
Or they can do a shares for cars swap offer...
Looks a lot like my backyard guillotine storage lot.
"Build it, and they will bring them to it."
Liberty is a demand. Tyranny is submission..
Guillotine stocks should be skyrocketing worldwide. Has private ownership of guillotines been banned yet?
Even the Chinese know a shit car when they see one.
Another BS article like that one about the US Mint running out of silver. LOL. ZH seems to like to repeat some of their threads for some reason even when they've been debunked.
junk in the trunk
don't sit down
I saw a Pontiac. Is this stock footage?
That's the worst job of photoshopping I've seen in awhile. Only on the Hedge.
Key word 2012. Buy a Frisker and uncooked chicken. Bring your own BBQ sauce. You can host your own YouTube channel.
How to burn down channel stuffing and cook da best food.
The new cash for unsold TARP auto clunkers. Obama, I have a pen and a phone.
These pic are missleading they only represent 8 hours of production .
Very first picture was roughly 1,000 cars...
Sell them to Cuba - finance them at 1% for 600 months - Cubans know how to maintain a vehicle - 50 years loans will not be a problem.
We are on track for September turmoil.