The Last Time Automakers Channel-Stuffed This Much, Lehman and GM Went Bankrupt
Don't show Phil LeBeau this chart!
While day after day we are told how fantastic auto sales are in America... and how the reported data from the automakers shows just how 'strong' the US consumer must be.. and therefore the US economy.
However, as the following chart shows - it's all false!!
Relative to apparently surging sales, inventories of (unsold) motor vehicles are at their highest since August 2008...
In other words, the channel-stuffed "see how well we are doing" smoke and mirrors of credit-fueled malinvestment has hit a wall and yet the automakers - afraid to signal any chink in that armor - kept producing... there is only one way this ends... badly!
Simply put - The last time automakers channel-stuffed this much, Lehman and GM went bankrupt shortly after.
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is there a brand breakout for this? would be interesting to see the distribution (pardon pun) of domestics vs imports & specific brands within them.
BRING on the bankruptcies!
Another Cash-For-Clunkers program should do the trick. A tried and true method of the taxpayers underwriting the auto business and their unions....especially the lock-step democratic party voting unions.
GM can stuff their car inventory up yellen's rotten, odorous cunt.
And then bullshit-barry can go bail the them out.
GM can stuff their car inventory up yellen's rotten, malodorous cunt.
There! Fixed it for you.
Just in case there was any doubt...
How poetic.
Where is your patriotic spirit ??????? We need to give 1 percenters another trillion so they can buy new cars, then we can buy thier old ones..... You people just dont get it !
Can't believe the crap their making today. All cars look pretty much the same. Ugly "bug eyes" for lights, paint peels in 3-4 years, unsafe drive by wire accelerator and brakes, tires that look like they belong on Lectra Haul trucks, (referencing an era where America produced) , wheels that make you want to gag, no front bumper trucks and no bumper cars to really make those small collisions cost big money. Then they want 30-50 thousand for the junk. Couldn't find one decent looking car out of the entire gaggle. They all looked the same! Settled for a small truck and even at that I'd be afraid to work it like trucks I've owned in the past.
But hey,,, got GPS, and more digital crap than you can shake a stick at. Got bluetooth to make it easy to hook up the Igadget junk. Satellite no ad radio that goes dark when passing under tree limbs, maybe no ads but they love to talk, talk, talk. I don't even turn on that squawk box any more. Garbage in, Garbage Out.
You can do the real important things like starting your car 50 feet away with Mr. Digital or (what people really like) to lock your car and watch the pretty lights blink on and off and the horn go beep. Or Con Star to unlock your car for you and record everything you say.
I'll take a 64 GTO any day over the junk they're passing off today. At least it's American made, runs and looks good, and you can distinguish it from a Mazda.
You must have missed the news......automobile production has gone the way of buggy-whips....the only thing made today are computers with multiple wheels.
While I can't disagree with a lot that you've said I will say that both my truck (1994) and my car (1997) have DBW and I've never had a problem with either one.
But I will say I won't likely own anything newer, or better said anything that can be gps'd from the sky. I will continue to fix what I own now, I'm not getting involved in any vehicle that's going to be a party to skynet.
Waiting for a Shelby Mustang sale in the $7500 range.
Me too, I want an R. Just have to have patience and wait for the halo to wear off.
Dp
Maybe .gov could help by trying their hardest to put a big, rival, foreign Auto making company out of business...oh wait!
I see the GMC truck commecials where the gloating neighbor is oozing about the thousands he saved on a truck that has a MSRP of $50,000+.
My last new truck was 2001 and fortunately its been great. I cannot afford today's trucks with all the gadgets and doodads on a 48 month payment plan. I won't extend payments beyond that 48 month line in the sand.
This is the biggest illustration to me of the disappearance of middle class wealth is the fact that the 48 month payment is no longer a doable thing.
My last new trk was/is a '82 4dr 1T (ExHeavy Duty suspension) Chebby with 8' box. No radio, no a/c. It'll haul up to 2T of load.
One of its best features now was not original equip - if your coffee gets cold, you can dump it through the cold coffee disposal port in the floor by the door... don't even have to slow down. AND it now has a 24/7 security feature... if someone messes with it, the on duty guard mouse pops up onto the dash and scares them away!!! Cost brand new? $11,000. three years later the dealer offered to buy it back for ... 11,000.
But I need a heavy duty trailer to haul equipment on, so I'm gonna have to get another trk... maybe/probly at a Farm Auction.
I stopped buying "new" YEARS ago. Haven't regretted it yet.
I still love my 1993 G20 Van.
Here in Ireland they are trying some bullshit scam whereby your insurance goes up if your car is over 15 years - because they are involved in more accidents despite all cars over 10 years old being tested annually for road worthyness. If you go to a company for the first time with a 15 year old car they won't insure you or give a quote which is basically telling you to fuck off.
They are trying to force you to buy a new car.
Anyone have any info on the legality of this type of fuckery or how to defend against it?
My car is 15 years old but it drives and looks better than some of the much newer crap on the roads.
I spent €150 on maintenance last year. Oil change and brake pads.
That's disgusting, not sure how you would go about defeating that except to get the right people into positions to do something about it.
I would start by actually sitting down and looking at the documents that tells them they can do that...and on what basis.
You might (likely) will be in for a court battle so get a lot of people behind the effort.
Does Ireland have a "historical vehicle" law? Might look into registering itt as a "clasic car". The above mentioned PU is almost 35 years old, and the line in the US is 25 years for historical, and you can't drive it more than 4k miles a year. I only put about 1 or 2K miles on it each year.
Cash for Clunkers 2.0... the socialists have to get this fired up quick to protect all those union jobs again.
Channel Schlonging...
A car market built largely on 7 year car loans to subprime borrowers. What could possibly go wrong?
you ca short em all via ETF CARZ. migh wait for a bounce though.
I have a buddy with a dealers license who goes to auctions. Year old cars and trucks from bank forecosures going unbid for 50% and sometimes better off their original price because there's just to many for the market. Lots of Harleys, boats and motorhomes too.
The only people buying new are the people too broke to buy second hand. They get those retarded rapey 7 year loans with no money down.
Goodbye middle class and your toys.