Here's Why Automaker Stocks Are Falling (Despite The Media's Exuberance)
How can it be that automaker stock prices are tumbling given that auto sales (if one listens to CNBC) are surging, that (if one listens to the CEOs) everything is awesome for automakers, and (if one listens to Phil LeBeau) there is no bubble in auto credit? The answer is simple... (you just don't want to admit it)
Two words - channel-stuffing!
In fact, as IceFarm Capital's Michael Green details, the credit-fueled over-productiuon has historically been disastrous for the global auto sector...
So once again - a mal-investment boom has pulled forward demand (from who knows where) and signalled entirely incorrect production expectations to executives who can only see 1 quarter ahead and the amount of buybacks they must do in order to maintain their own personal wealth.
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Just bought a new Hyundai. Nice. Really nice. Ford, GM, Chrysler simply didn't have the type of car we wanted. Oh well.
YOU DISGUSTING TRAITEROUS POS! What clinched the deal? The 120 Month Zero Down Loan.
I dated a girl that use to stuff, eventually she was exposed and boy it was a let down.
My 95 chevy 4x4 is in the process of getting a 187,000 mi. face lift. $5K and I'm good for another 100K. W00T !
Hyundais are great cars, I've owned 7. Most are made in the US. Parts are 52% US and 48% Korean. The dealership is in the US and I have all the service done at the dealership which employs local guys AND gals to do the work. Great warranty, loads of features, 5-star crash ratings....etc....we live in a competative global village and people WILL shop for the best deal and best car that fits their needs. On the flipside, I have owned 8 trucks in my life. Had them all; Chevy, Ford and Rams.....no one makes a truck like the USA. So, to the guy/gal/it above.....go easy on the rant. We have a LOT more important things to focus on, like getting Trump and Cruz in the WHite House.
Finally, let's get the conversation out of the ditch and back on the road......the government and corporations are cooking the books and misleading all of us. THAT should be the issues-at-hand. How can America get all four wheels on the road if we are being lied to and if they are channel-stuffing.....and all kinds of OTHER types of stuffing, too?
http://www.theliberist.com
Dude....... We have a LOT more important things to focus on, like getting Trump and Cruz in the White House.
Apparently, you're still on the farm. If you look "way" over there, past the feeding trough where the other sheep are, you'll see an open gate. Run fast.... run hard.... free yourself from the great lie.
Do you actually think "voting" is the answer?
Got out, enabled Java, and back in to say that was funny. He is honestly a sheep. He goes to the dealer. SERIOUSLY? All the dealer does is swap parts and charge you and hope that it is fixed. No critical thinking goes on at all. At the dealer there might be ONE true mechanic. The rest are just robots who change the parts they are told to change. Thanks for the laugh.
Ya but..you own a hyundai. Aka trash.
If its a Sonata i call it the "Blue light special". All the instruments light up blue. They drive good but ive rented other cars and i hear more Road noise out of Hyundai. Maybe your half deaf.
I don't find fault for buying non-American built vehicles, I don't own any myself.
You should probably tell everyone what Hyundai you bought instead of just saying it's a Hyundai.
a mal-investment boom has pulled forward demand (from who knows where)
Channel stuffing = no where
pulling it forward from the other side of the rainbow. which turns out to be unicorn vomit
fill - the - bowl is the dumbest cheerleader on CNBC, now that's quite an accomplishment!
I'm a bigger fan of crotch stuffing.
You'll be wanting to talk to Lenny Kravitz then...
since the housing bubble people have been living rent free so they can afford a huge car payment. it always works out for the deadbeats and billionaires.
Huge builds in gasoline inventory prove that "Everything is Awesome!"
Stopped buying new a long time ago................... did recently pick up an 2011 Impreza that was spoda' be for the kid, but when we saw it on the lot, seems like someone tried to turn it into some sort of hoooopdie-mobile................
Got me a new Audi S3 for .99 at 36 months.
All you "I drive a 1998 POS that's paid for" can eat a bowl dicks.
Fucking savages driving around with non-heated steering wheels.
Haha, I was going to down vote you but you made me laugh, I've been looking longingly at those heated steering wheels!
Wait till ya have to replace one.
LMAO...I've got a 1985 Mercedes 300 Turbo Diesel sedan. I drive it back and forth from the farm instead of the 2014 F250. Fucking heat won't transfer to the floor...just the vents and defrost....about froze my fucking feet off today at 12 degrees F. Those heated seats would have been great. lol
I believe (but I could be wrong), that car uses vacumn hoses to control the mode doors. Look under your hood or under the dash for a broken hose. You can fix yourself. Sometimes easier to find with the car running and you can hear the leak when you move the hoses around. If the problem is in the dash controls, let a mechanic fix it.
Edit.-You said Diesel. That car has a vacumn pump. It also will go bad...if there is even a belt still on it.
Thats very funny..."fucking savages".
I'm very conservative and I'm a good mechanic. Got tired of the whiner customers and the moronic management, told em all to fk off. But I keep my cars a long time. Currently driving a 1994 Grand Prix with the 3.4 liter motor. It has ~375,000 miles on it. Trans has been built once, the heads have been redone twice (by me), main part of engine is original. I luv this car.
My wife on the other hand is more "refined". I bought her a 2007 Fusion in 2009. Still have it, but has many miles. She wanted a new car. My Christmas present to her was a 2015 Altima with everything. Leather Seats, Navigation, Camera's, Tech. Package, Sunroof, a "real" remote start system, heated seats, etc., etc. A really nice car. I paid cash for it. She loves me. :)
Remote starts are a $400 (installed) aftermarket product. You could add one to any pre-owned jalopy. It's cheapr than building a garage on which you them pay more property tax. Buy somebody a remote start and they will love you in January!
As a mechanic, I speak from experience.
When cars were simpler, remote starts were easy. Any moron could install one.
With these news cars, it is not so easy. And even if you find someone to install one, these new cars do not use 12 volts to control the accessories. They use computers talking to each other. So...even after the car starts, nothing will turn on automatically, like the a/c or the heater. If that doesn't happen, there is little use in having a remote start.
Check it out. You will find very, very few newer cars with a remote start that automatically turns on the heater or a/c. And I defy anyone to find an aftermarket shop that will install an aftermarket remote start system on a newer car. Sure...over the phone they will say they will. But when you actually try to get it done, they will say no. Or, after they install it, the a/c or heater will not come on anyway. Newer cars are VERY complicated. I am mostly referring to the newer cars with an automatic a/c and heater system.
It is true some dealers can install vehicle specific systems that work like they are supposed to. But you should still ask up front if the ac and heater will work when the car starts. And it will cost much more than $400.00.
ALSO - The reason I highlighted "real" remote start system, is because when I was researching these cars, I found that some dealers were listing every single Altima as having a remote start system. But when asking the salesmen how to use the remote starter, they responded back that was referring to the fact the car has no key switch, and the car can be started by pushing the button on the dash, as long as you have the "key" nearby. After doing some research, I found that some of the Altima's do have a "real" remote start system. The ones that do, will have an extra like half circle icon as the top button on the remote. When the car we ordered from out of state arrived, I showed the salesman what I was talking about. He was totally surprised that the car could be started remotely outside of the vehicle.
EDIT-I mentioned above I paid cash for my wifes new Altima. Just to be clear I am not wealthy. Thats why I started out my post by saying I am conservative. I have no needs. I don't do movies or dinner, or anything else really. I own my land and house. I do not think I have ever paid rent. (There was a few months in 1983, I cannot remember if I did or not.) I am a mechanic, so I don't have to pay for auto repairs. Also, importantly, I can and have fixed everything from washing machines to dryers to TV's to refrigerators. I have never had to call a repairman for anything in my life. I have had the same cell phone for longer than I can remember. It is a RAZR 3 I believe. I am very conservative, with few needs. Which leaves the money available to keep my beautiful wife happy. And really, she doesn't ask for much either.
Your the idiot that must live in a Cold state that requires a heated steering wheel. That dildo up your bumhole is probably heated too. Enjoy freezing your gonads off if you have any.
Yup. I live here just so I don't have to put up with you, or your mom.
Heated steering wheel …..LMFAO. Wife has one in the van. The first thing I said was how fucking stupid. Then I tried it out – pretty sweet actually.
+100 hehe heeded fucking savages
FORD - F ixed O r R epaired D aily
Found
On
Road
Dead
Chevrolet
Cheap
Heap
Every
Valve
Rattles
Oil
Leaks
Everytime
F ucking
O tragously
R etarded
D ealers
Good thing the Toyota dealer across the street actually thinks he needs to sell trucks to stay in business. i'll never own a F-C-D again. Toyota, oh what a feeling.
Was chatting with a Mechanic that was bagging on Fords just yesterday. Until I shut his ass down mentioning the Ford inline 6 engine. Best damned engine ever made.
Channels seem well stuffed in Whitby, a small city near Oshawa which produces GM, anyways, there's a half built housing development that's been converted to a parking lot for hundreds of new North American, European and Korean brands, take your pick. I haven't heard of the automakers laying anyone off lately, except perhaps VW, and they just seem to keep making more....
How long does this continue when there are no 'just-in-time' parts, or anything else, being shipped right now, in fact, no ships in any ocean moving anything. No raw materials, no finished products and no food. Check out these sites for tracking ships http://www.marinetraffic.com/en/ and https://www.vesselfinder.com/ Forget the Baltic Dry Index, watch the store shelves to see how this unfolds.
Whitby is the storage lot for most new vehicles before they eventually make it to the dealers in Canada. Mine sat there for seven months before it was it was finally purchased by ummm....me
Autos are in a bubble with the rest. A bubble for one is a bubble for all. Everything is connected.
You could stuff a lot of cars into Hitlery's crotch.
Be careful of the snuke
Of course there's a bubble. Two out of the big three are basically owned by the government and have been liberated from the need to turn a profit.
Pretty sooon you"ll be able to use the EBT card at GMC.
Uber partners, GM Financial and Santander is being investigated for their shady subprime loans. Guess that would explain why the slow down in car ownership...
Rental car fleets and now Uber represent a great wholesale market and depreciation racket for Detroit. The fleet cars are leased and rapidly written down which creates tax credit opportunities. It could all come apart if the residual value of the leased cars drops a lot, something the glut of current autos sets up some 36 months down the road when the fleet leases expire and they have to sell the leased vehicles.
Stuffing cars into subprime buyers is profitable when the car is repo'd as the dealers take a tax writeoff for the uncollectable bad debt. The tax benefits are greater than the auto sales profits so restuffing the vehicle into another highly likely to default buyer just keeps cycling the same car through the tax benefit program. Instead of turning inventory, they turn tax credits!
My 12 YO Lexus and 11 YO Toyota should serve us for another 10 years, at least. Who the heck is buying all these new cars?
Hopefully your Lexus is Camry-derived, because the rear-wheel-drive ones seem to end up with huge repair bills after a decade.
So many leases.
I see em every day and it's literally anyone and everyone. Credit history or score doesn't matter these dealership can always find some company to get ya a loan. These people don't have enough money to buy anything with actual money so they just keep buyign cars and turning their credit over and over. Makes em feel good I guess.
last car i bought costed me €2000 in 2007 and i still use it