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Here Is The Reason Why GM's July Car Sales Smashed Expectations
Moments ago GM impressed everyone once again when it reported that in the month of July it sold 272,512 cars in the US, or a 6.4% jump compared to a year earlier. This was an impressive beat to consensus expectations of just a 0.6% increase.
What caused this jump?
On one hand the relentless surge in reckless debt-financing for car purchases continues to be a major factor, and as Housing Wire reports (what we have covered extensively in the past) "auto debt accounted for 81% of the increase in overall non-mortgage debt among mortgage holders over the past 4 years."
But at this point it isn't just government-funded loans to subprime car purchasers. At this point it is the government itself which is buying GM cars hand over fist, thereby engaging in yet another indirect bailout of the formerly bankrupt automaker, which was bailed out by none other than the US government. To wit from GM's monthly sales report:
Fleet deliveries in July were down 20 percent year over year, as the company continues to execute its plan to reduce sales to rental customers and grow commercial and government deliveries. Government sales were up 38 percent, with deliveries to state and local governments up 59 percent. Commercial deliveries were up year over year for the 21st consecutive month. Rental deliveries were down 36 percent.
So fleet and rental deliveries plunging but who stepped up? Why the US government itself.
In other words, after bailing out the company's balance sheet in 2009, Obama has taken it upon himself to next bail out the income statement of the government-rescued company which is trading over $1 under its IPO price.
Of course, all of this will be for nothing if GM's Chinese auto sales - far more important for the bottom line - plunge in the coming months as they most likley will in the aftermath of the most turbulent month for domestic consumer sentiment since the great financial crisis.
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Govt for clunkers?
Buyer of last resort for everything
GM "plans" to reduce sales to rental agencies. Sure they do.
Oh you betcha, they want some more of that sweet, sweet bail out money, which is much better than building things people actually want.....
The question is if were sold to govt on competitive bid basis
If you count the bribes...yes.
The world's indespensible democratic officials deserve the finest GM vehicles.
Only if GM buys Yugo.....
Smart, formerly Yugo.
Which one is the clunker? A GM car or .gov? Don't answer that question.
Running out of paint for this pig.
Here in Texas, it seems like every city, county, state, and federal employee with a driver's license is commuting to and from work in a new blacked-out GMC Tahoe.
Because every government worker deserves a free $50,000 SUV with three-row seating and 355 horse power.
Well at least the birds have exercised proper judgement in this case.
Fortunately, car washes, fuel, tolls, registration, inspections, taxes, maintenance, and repairs are all paid for by Big Brother. Plus...you can park anywhere and never get ticketed or towed.
Big Brother loves you, especially if you are a government worker!
Why the fuck can't government agencies buy used vehicles? I shouldn't be surprised that you never hear taxpayers complain about the high-priced, new vehicles all government and law enforcement agencies drive.
That is a barely marked car!
Should you ever be sentenced to community service and made to wash their cars, be sure to use enough wax to cover up the scour marks made by your sandy rags...
What a pig ugly piece of shit.
It's the same everywhere. I'd almost think that the majority of Tahoes on the road are government rides.
In San Diego Tahoes are frequently stolen. Some have been found being driven by the Mexican Police force. Certainly must save in costs.
Miffed
Operation GM Helm
Is that a passenger car? In Europe this would be considered to be a sturdy truck. I sure wouldn't like to bump into one - literally, that is: me and my car would be as flat as a pancake.
And crash/pivot bars
And here I thought it was because everybody was trying to get their hands on a Chevy Volt.
Fleet sales and "rebate technology" is all GM has ever known. Nobody should be surprised by this. Even less so now that they're owned by the government.
Must keep the local City and Town Police nice and comfortable in their new GM SUV's.
even when stopped in your vehicle, keep the engine running.
we need to increase demand.
They've got to keep the battery charging in order to run all of their electronics, lest they die curbside.
Gotta keep up with the perps on Facebook, ya know.
It's not called Government Motors for nothing.
You seem to have missed the part where it said sales to "State and Local governments" up 59%. Or does Obama control all procurement for state and local governments as well?
GSA! GSA! GSA!
Of course that was all part of the plan to take over the States rights. Most gave up those rights when they started taking $$ from the .gov in the form of Unemployment insurance help.
IE: 99 Weeks
Being somebody born in 1967, I accutely remember the fiasco that was different states changing their drinking age from 18-21 in the 1985-1987 time frame.
What I recall particularly clearly is that the FedGov would withhold highway funds to states that wouldn't cave to the Crazy Mothers Against Freedom, I mean MADD pressure.
Louisiana was the last state to cave, and I was glad of that.
Then, they used the same bullying tactic to lower BAC to .08 in every state.
That was about when I got my "DAMM" t-shirt. 'Drunks Against Madd Mothers'.
Ever heard of something called "Federal grants." Local and state don't have the budgets by themselves to buy most of this crap. Government budgets are all centered on the Federal budget now.
Of course. Government Motors. I'm just shocked they don't have the balls to put all the public pigs in Cadillacs. As you can see from the sales YOY.
I new when the bailout was going on..that the Government would make GM the car of Government..
Absolutely
Must keep all those GM unionized workers happy
edit - repeat
Dot gov. is loading up the balance sheet with GM cars. No problem, just hold to maturity.
For fucks sake for how long will this global Ponzi keep going on???
"What caused this jump?
On one hand the relentless surge in reckless debt-financing for car purchases continues to be a major factor,"
Yes ... but ZH left out another reason from the release
INCENTIVES are climbing. YTD incentives have been 10.9% (around industry avg) of ATP (average transaction price). In june reached 12.1% ... july 12.5% ... august??
They must replace cars every year...
I will not even allow a GM vehicle in my driveway. Brother has a new buick parks in the street
What's in your driveway? Hondas or BMWs? :)
LOL went to a show last weekend and one of these monsters was parked within striking distance of the box office. Running of course couldn't tell for sure but it appeared no one was in the vehicle. Saw the show came out a couple of hours later. Sucker was still running and yeah no one was in it......Seriously the freaking waste by all these a-holes is driving me crazy. Pissing off money and resources like they are unlimited and free.
I guess this is supposed to be some kind of decoy but seriously.....its a waste
.gov has filled all the states and municipalities with the ex-war, mine resistant vehicles ( at $600,00 a pop) that ISIS hasn't already captured and now they got to double up on all the police cars that have been burned up in post police shooting riots.
Silly goyim. You need pay closer attention. UNHCR make sure all third world refugees get resettled include new car. You stupid goyim taxpayers pay for Somalis free housing, EBT cards, healthcare, clothing allowance, education, and car. Must have car get to store, get to doctor, get to job was once yours. We make you goyim work twice as hard so you keep your clunker running, and pay for third world hoards live on dole. We make you want your pretty white daughters have children not look like you. Hahaha – Oy Vey!!
what was GMs inventory build at dealers?
Go Government!!!!! What would the economy do without it?
Why so little Caddies? Under 20k. I thought Cadillacs were selling like hot cakes just like BMW and Mercedes.
The government is the economy, stupid.
It doesn't need The People anymore.
You're obsolete.
Yep,,, those guvvy parasites dripping your blood are driving around in brand new classy vehicles purchased by.......... you!
Brand new GM SUV's Fiat Chargers, Ford 250's. Soaking an average $90,000 per year salary, the finest health plans, the best retirement plans, even Federal Credit Unions catering just to them! All paid for by .... you!
Go to Sams, Costco, Lowes, Home Depot, Wally World and see the signs giving your pubic servants discounts on everything they purchase using money from ...... you!
Utopia,,, at least for a few!
Be sure to vote,,, your vote counts and is needed by DieBold to flip for your favorite candidate(s) they choose.
Remember this?
GM's Russia sales hit by low adaptability to consumers, ruble fall ...
St.Petersburg plant goes idle. Dan Akerson is a genius.
http://www.bloomberg.com/news/articles/2012-06-22/gm-ceo-says-russia-gro...
so - lemme see if I have this straight: my taxdollars were used to buy cars from a company that was bailed out with my tax dollars? where do i sign up to get my business in on a deal like that? oh, that's right...i'm not an oligarch. fuck.
I hope they park most of them in attatched garages at thier homes so they all stay nice and clean for resale. To ISIS.
It's the circle jerk that keeps on giving.
State of Kalifornia is hiring. http://www.news10.net/story/money/workplace/jobs/2015/07/28/state-of-cal...
I'm sure all of these 3,800 jobs are essential personnel and not just government job stuffing.
Did they list a Government Issued Tahoe with free fuel, maintenance, and parking in the job bennies?
The people worth hiring left due to taxes and reverse discrimination. The ones who stayed are... retiring, to collect on their CalPERS pensions!
Last week it was reported on the news that FIFA World Cup management in Toronto purchased hundreds of GM vehicles three moths previous to the opening games in Toronto. The CBC reported that all the FIFA Cup vehicles were parked under the Gardener Expressway for three months and that they were regularly taken to a Car Wash in Toronto to wash the dust off them that had accumulated each week. The total cost of car washes that was billed to the Canadian taxpayer was $10,000. Each car wash ticket was around $12.
GM CANADA is ripping Canadian taxpayers off BIGtime on fleet sales, and car washes.
I don't think its reckless. According to krugmanomix, as long as a few hundred thousand *moar* cars are stolen this year, the burden transfers evenly across state coerced insurance slaves. Fuck you, pay me. Cryptojew El Chapo is always shopping for deals like this, we're good.
On the other hand, while it addresses The Goyim Problem, the exploding Dodge Ram just doesn't pump enough numbers.