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Chinese Auto Sales Crash, Inventories Soar In November
Despite ongoing exuberance at auto sales in America (which disappointed) - as crashing credit standards enable every Tom, Dick, and Muppet to buy too much 'depreciating asset' for their incomes - there are numerous problems few are talking about for automakers worldwide. Aside from "plans to buy a car" tumbling in the latest confidence surveys, and inventories-to-sales surging, China just poured ice cold water on any hope of stability in that 'growth' market as auto dealers issue the highest inventory alert since June. November data from China shows demand plunging, sales collapsing, and inventories soaring - a triple whammy of "no, things are not 'stabilizing'."
As sales begin to disappoint...
- *GM NOV. TOTAL U.S. VEHICLE SALES UP 1.5%, EST. UP 2.9%
- *FORD NOV. U.S. LIGHT-VEHICLE SALES UP 0.3%, EST. UP 3.2%
- *FIAT CHRYSLER NOV TOTAL U.S. VEHICLE SALES UP 3.0%,EST. UP 3.2%
- *TATA MOTORS: TOTAL NOV. SALES DOWN 7% YEAR OVER YEAR
First, Inventories are at record (absolute) highs and at recession-signalling ratios to current sales...
Second, and that is a problem because the much-hyped and hoped-for future sales to soak all this excess inventory up is not coming soon... As the consumer confidence survey shows the lowest level of "plans to buy an auto" since January 2013...
And finally, Third, do not look to China for any help at all... China November Vehicle Inventory Alert Index rose to 61.8% (from 54.1% in Oct.), the Beijing-based China Automobile Dealers Association says in e-mailed statement.
Automakers appear to have two options, offer buy-one-get-one-free to all new Syrian refugees or cut production dramatically in hopes of easing inventory excess. Good luck.
We are going to need more up and to the right of this...
Charts: Bloomberg
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Time for a clash for crunkers program.
Reary good idea!
London (Platts)--1 Dec 2015 844 am EST/1344 GMT
Crude oil is flowing through the Kurdish-controlled Iraq-Turkey pipeline at 650,000-700,000 b/d and the line's pumping capacity will be lifted to 1 million b/d by 2016, the Kurdistan Regional Government's natural resources minister said Tuesday.
Ashti Hawrami, speaking at a Kurdistan oil conference in London, said: "We could have been there by now with IS [Islamic State militant group] in 2014, stopped work and halted activities. Particularly explorers slowed construction", he said.
Although more than a year behind schedule, Hawrami was confident the increase would be completed in 2016. "To do that, we need to ensure the oil companies are being paid. We should not fall back on that", he said.
The KRG has faced difficulties making regular payments to international oil company contractors looking to recover their costs. The companies, in turn, have struggled to justify further capital expenditure.
Payments for November to the contractors were delayed by 7-10 days, Hawrami said, adding they were authorized Monday.
KRG production totaled 18.418 million barrels in October, or 594,126 b/d, compared with around 442,000 b/d in January, according to natural resources ministry data Tuesday.
Exports through the KRG pipeline to Turkey in October were 595,528 b/d, including 156,455 b/d from Iraq's North Oil Company.
The KRG's direct exports have earned about $3.3 billion this year, along with nearly $2 billion paid by the federal Iraqi government, though payments from Baghdad ceased in June.
The writing is, and has always, been on the wall.
so, you're saying those first time Chinese car buyers, who don't need a car in the first place, who drive 3,000 miles a year, don't need to replace their car yet? No kidding!! The absolutely last thing China needs is more cars on their roads...when you can walk to work and walk past all the cars on the street (parking lot) then you don't need a car.
Oh, this one is interesting due to the fact that it is dated for July 31st, 2014; it goes to show us, that the bird was underneath our nose the entire time, but we did not know where to look just yet.
An exerpt of paragraph one:
"Part of a Kurdish oil cargo has been offloaded from a Greek-managed tanker into another tanker in the South China Sea, but mystery surrounds the identity of the buyer and where the two tankers are headed..."
The entire article from Reuters:
http://www.reuters.com/article/2014/07/31/iraq-oil-kurdistan-asia-idUSL4...
I am starting to wonder if this illegal trade has been going on long enough that the removal and disbursment of the culpable parties and pathways may be too farfetched to entirely conceal. If they were in the South Sea in 2014 using ship2ship transfers under secrecy, then there is more than just Israel in the mix. Of course they want you to bite on Israel, fucking American.
The Chinese are quite resourceful and very prodigious savers. Consumerism is just not in their blood.My former gf is from Tianjin, CN..I should know. Money and LUCK (even numerology) are so entwined and ingrained, in their culture. Cars...they ALWAYS buy in cash (even houses, properties, etc.) over credit. Generally, they own till they drive them to the ground.
I wouldn´t want one more Volkswagen into Beijing. Could make the air tilt.
traded in his chevy for a cadill ack ack ack ack ack...
......you outa know by now.
Americans are driving plenty of beaters around. I can see Obama doing a cash-for-clunkers #2.
Anything to boost the elections in 2016.
It's become print and simulate until a currency crisis.
Obama doesn't give a shit what heppens after he's gone. In fact, he's hoping crashes good and hard. That's what he was sent there to do my his superiors, after all.
I got a big clunker over at my house on Pennsylvania Avenue. How much can I get on a trade for a 2016 Trumpmobile or Cruzer?
Who the fuck buys a TATA car?
Fuck man am I missing something?
Maybe I should start a car company and name it DOoDOo Motors.
Anyone who owns a Jaguar, Land Rover or Range Rover.
Didn't Tata buy Jaguar and Land Rover but pretends they are British with all the Eton accents and shit like that.
Imagine using the local talent...
Oh, sahib, that wagon would look so beautiful behind your musk ox. You must buy to please the beautiful lady, yes?
Buy a Laptop get a free car.....
Both equally useless
You're driving me to drinkin' in your hot rod Lincoln.
They need better marketing in China to turn this around. Something catchy like "See the USA in a Chevrolet". Maybe "See a Ghost City in something really shitty"?
"Experience first hand, the USA in a chevrolet"...more fitting.
I would like to take a wait and see approach...China sales probably down due to weather and fog...I mean they really need alot of vehicles to go visit their ghost cities in the country...
Globalization.
China remains a single party centrally planned communist state. Their numbers will be exactly what the state dictates...
same as it ever was...
Good news for GM, right? They could always use those cars to fill in potholes in the US that haven't been fixed since the last winter.
Last winter?
Some potholes here in Chitown have been around since the city was built! Pipes too...
Same thing in California. The infrastructure in th US is at a D- grade and steadily declining. I guess we will just have wait until the golden state bridge collapses and kills some black folks
They're gonna' need another 'warehouse' explosion.
To repeat: crash harder. Crash faster. I'm not seeing any splinters here.
Sale on Riksha. Buy light now! Row Financig avarable. Tly befo you buy! come take for test lun. Free flied lice wit perchase.
How come no stats on American built cars? i.e. Toyota
I am just about ready to buy a 2003 Chevy Trailblazer if the guy wants some Christmas money. Kind of a bizarre engine though as a 4.2 liter in-line six. Why did you do that GM? I am not buying it for me but if the price is right I will buy it because I know I can sell it. It is a hard to make any money in the used car business but I still think that is where the money is going to be because who can afford this new shit? Any new car is not worth the price paid and I think we all know that.
For non first responder government employees, I think they should get 15 year old junk cars like we have to buy and fix it themselves if they want a government vehicle.
New car not worth the price paid? Blasphemy! You see this new Mercedes E550, the seats TURN as you TURN. I mean, my god, the tech! Its unbelievable!
And the 2015 Honda Civic SI? Its got no limiter and has 400ft-lb torque! So when your cousin drives it and redlines it at 7k RPM and accidentally gears from 5 to 4 (actually easier to do than you think) and blows the engine up, you know you have one beast of a machine!
And dont get me started on the new BMWi3. Thats one FINE looking machine, especially for the LOW price of 50k, I mean, who doesnt want a pimped up Nissan leaf for 2x the price? I do!
Running a country like China is like raising a baby tiger that runs free in your house. It starts out all cute and cuddly then you notice you're depopulating your entire lifestock reserves just to keep it fed then you run out of livestock so you devote your life to procuring food to feed it lest it eat you.
As long as it's alive you are in fact it's slave not the other way around and if you skip a meal you are the meal.
Now that's not how Conrad Dobler would talk. He'd have that tiger doing his laundry before the week was out.
Jos. A. Bank sale, but for pieces of garbage (new cars).
Buy one, get four free...Keynesian economics solution
But,but they said China would be buying all the TESLA that could be built?