GM Channel Stuffing Soars To All Time High

Tyler Durden's picture




 

Did channel stuffing expert AOL quietly merge with a Government Motors without anyone's knowledge? Because making record amounts of cars only to have them amortize rapidly in showrooms must be some New Normal definition of a recovery.

Source: GM

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Thu, 03/01/2012 - 12:54 | 2213019 Gubbmint Cheese
Gubbmint Cheese's picture

Vroom Vroom..

Thu, 03/01/2012 - 12:59 | 2213039 Hippocratic Oaf
Hippocratic Oaf's picture

Didn't they just report a 1.1% increase in sales? Always another side.

BWAAAAAAAHAHAHAHAHAHAHAHA!

Thu, 03/01/2012 - 13:02 | 2213056 Gomie
Gomie's picture

Yes, a massive increase in sales! And I bet summer temps in the middle of winter had nothing to do with the sales increase either.

Thu, 03/01/2012 - 13:05 | 2213070 nope-1004
nope-1004's picture

That's a chart of how a government led recovery looks like.  A complete and utter failure.  Wouldn't want the market to decide, now would we?  Better to force a recovery.... LOL.

My take on this is that the Gov't genuinely knows the homeless have to live somewhere and are preparing accordingly.

 

Thu, 03/01/2012 - 13:06 | 2213077 economics1996
economics1996's picture

Reminds me of Hitler and Mercedes Benz. 

Thu, 03/01/2012 - 13:09 | 2213087 Upswaller
Upswaller's picture


K, here's yer conspiracy theory of the day......

EMP is most effective if the cars are running at detonation.  If still, not so much. Gooberment stages red flag EMP at peak US rush hour, call it 6 pm EST, bricking the running cars.  And lots else.

No one dies, GM-stuffed cars ready and waiting, Iran gets the blame, massive rebuild of certain infrastructure, nation "comes together in crisis," war to ensure a booming economy.

Yeah, lotsa holes, but it sure was fun.

Thu, 03/01/2012 - 13:20 | 2213126 drink or die
drink or die's picture

Cars can take a bolt of lightning while running and be ok (example: http://www.youtube.com/watch?v=GZxgYNnkBd0 ).  No one has ever proved that an EMP would stop cars (in fact, recent research shows the opposite).  Your theory sucks.

Thu, 03/01/2012 - 13:32 | 2213165 Abitdodgie
Abitdodgie's picture

We had a power transformer blow on the lamp post in Los Angeles and it killed every modern car for 200 feet , EMP they dont like it . Lighting is NOT EMP it is an electric discharge.

Thu, 03/01/2012 - 13:30 | 2213170 Upswaller
Upswaller's picture

Hey dumbass!  First off, I was just having fun, but hey, there's more!!!  

Lightning is in NO WAY RELATED TO AN EMP, so go back to school.  Second, you're completely misinformed about it's effect, and since I'm just about to leave on a trip and have little time to entertain fools, at least here's this for you.

http://www.youtube.com/watch?feature=player_embedded&v=Aj54FcI7_dE

Have a great weekend!!!

Thu, 03/01/2012 - 13:39 | 2213202 drink or die
drink or die's picture

EM energy decreases extremely rapidly from it's source.  Notice how the cameras etc were still working in that video?  A nuke going off miles in the atmosphere will for sure fuck the power grid up (because of the transmission lines hundreds of miles long that will induce current), but its highly doubtful that it will mess cars up.

 

The reason I mention lightning is that your car is a metal shell that (semi) protects internal circuits from damage.  Of course an EMP has more high-frequency components that can penetrate further into your car, but unless you are extremely close to the source you should be ok.

Thu, 03/01/2012 - 14:47 | 2213519 EBR MOD 0
EBR MOD 0's picture

while on lightning, most power stations have very large lighting rods pointed, where you may ask, towards the sky near the transmission lines. Those lines in the grids are capable of handling a direct lightning hit and disperse out through the transmission lines. You might see a blink in your lights if close enough. Been there seen it a number of times at a station. Now as far as an thermo-nuke EMP, dunno about that one. But if lightning actually hits a generating station structure, it can fry it to the point of down for a lot of repairs. Been there seen that one too.

Thu, 03/01/2012 - 13:27 | 2213158 Ahwooga
Ahwooga's picture

Apparently most people here dont recognise sarcasm without the obligatory /sarc

Thu, 03/01/2012 - 15:30 | 2213759 Chuck Walla
Chuck Walla's picture

Thats a mighty big Faraday box you're talking about.

Thu, 03/01/2012 - 13:10 | 2213089 Buckaroo Banzai
Buckaroo Banzai's picture

In Soviet Amerika, car buys YOU!

Thu, 03/01/2012 - 13:44 | 2213242 tekhneek
tekhneek's picture

In Soviet Amerika, man on radio listen to YOU!

Thu, 03/01/2012 - 15:33 | 2213770 knukles
knukles's picture

That's creepy....

 

Especially since the folks at OnStar can proactively tune into your conversations without you....
Yes.
Check it out....

Thu, 03/01/2012 - 13:13 | 2213106 Max Fischer
Max Fischer's picture

 

 

That's a chart of how a government led recovery looks like....

You guys have no idea what you're talking about.  That "channel stuffing" chart is totally irrelevant.  The sales figures the GM reported today are sales to customers, NOT GM sales to dealers, or GM "stuffing" dealers with inventory.  The reason for the increase in inventory is due to huge expectations for Spring sales.  

Max Fischer, Civis Mundi

 

Thu, 03/01/2012 - 13:22 | 2213133 EscapeKey
EscapeKey's picture

Must be QUITE a spring, considering they've been building up inventory for 3 years in anticipation of this event!

Thu, 03/01/2012 - 13:26 | 2213149 Max Fischer
Max Fischer's picture

 

 

Your comment makes no sense.

Max Fischer, Civis Mundi

Thu, 03/01/2012 - 13:27 | 2213157 mayhem_korner
mayhem_korner's picture

 

 

Step back from the mirror, Max.

Thu, 03/01/2012 - 13:36 | 2213201 EscapeKey
EscapeKey's picture

Of course it doesn't. Generally speaking, something becomes harder to understand, when your paycheque depends on you not understanding it.

See the inventory graph? It's been on the incline for 3 years straight. But, apparently, it's because we'll have a blowout spring.

Thu, 03/01/2012 - 13:42 | 2213218 Max Fischer
Max Fischer's picture

 

 

It still makes no sense.  The reason the inventory levels are increasing is because sales are increasing and GM is making more cars to compensate.  This has been the trend ever since they emerged from bankruptcy. 

Your post is truly senseless. 

Max Fischer, Civis Mundi

Thu, 03/01/2012 - 13:47 | 2213257 slewie the pi-rat
slewie the pi-rat's picture

must be why the're so profitable!

they can always keep dumping them in china!

GM: "If we build it, it might sell"2

Thu, 03/01/2012 - 13:48 | 2213264 Terminus C
Terminus C's picture

umm, how much are you being paid to post illogical statements on teh interwebz?

You are saying that GM has been increasing sales for three years? tis funneh troll.

Thu, 03/01/2012 - 14:01 | 2213315 Max Fischer
Max Fischer's picture

 

 

Yes, that's EXACTLY what I'm saying.

GM total sales:

2009   2,084,492

2010   2,215,227

2011   2,503,820

It's been increasing EVERY YEAR since bankruptcy.  Of course, you probably wouldn't know that because you're focusing on something utterly irrelevant like "channel stuffing."

Max Fischer, Civis Mundi

Thu, 03/01/2012 - 14:31 | 2213460 Mission Stupid
Mission Stupid's picture

Using your numbers and the chart above it appears that YoY GM sales growth is due to channel stuffing.

Thu, 03/01/2012 - 14:45 | 2213514 Max Fischer
Max Fischer's picture

 

 

*LOL*

That's because you do not understand how GM reports sales, and you're focusing on a red herring for your information.

Max Fischer, Civis Mundi

Thu, 03/01/2012 - 14:50 | 2213527 Mission Stupid
Mission Stupid's picture

While this is true you did not offer any evidence to refute my observation.

Thu, 03/01/2012 - 15:14 | 2213668 Max Fischer
Max Fischer's picture

 

 

WHAT???

I've got provable commentary and facts posted all over this thread. You want me to wrap a red bow on it and serve it to you?  Feel free to research anything I've said and prove it wrong. You CAN'T.

Max Fischer, Civis Mundi

Thu, 03/01/2012 - 15:54 | 2213895 jcaz
jcaz's picture

You might want to get out of your Mothers basement for a bit and go drive by ANY GM dealership-  their lots are overflowiing, they're literally parking cars in rented lots away from their dealerships;

But hey, don't let physical facts get in the way of your pseudo-intellectual diatribe....

And good luck to you in life if you really believe GM's sales numbers- silly boy, Max.....

Fri, 03/02/2012 - 20:39 | 2218695 californiagirl
californiagirl's picture

Obviously you do not either.  Look at footnote 1 of the audited financial statements in their most recent 10K

Revenue Recognition

Automotive

"Automotive sales and revenue are primarily composed of revenue generated from the sale of vehicles. Vehicle sales are recorded when title and risks and rewards of ownership have passed, which is generally when a vehicle is released to the carrier responsible for transporting it to a dealer and when collectability is reasonably assured."
Sat, 03/03/2012 - 01:29 | 2219187 Max Fischer
Max Fischer's picture

 

 

Revenue recognition is something entirely different.  

That has NOTHING to do with the industry-agreed upon sales figures which are released on the 1st of each month.

The numbers released to the press on the 1st of each month are sales to end-customers.  This is a universal agreement among EVERY manufacturer - they only post deliveries to actual customers for the sake of fair comparisons.  If some manufacturers posted deliveries to end-customers while others posted the number of cars loaded onto transport trucks while others posted cars rolled off the assembly line, there would never be a fair comparison. So all manufactures agreed to post "deliveries to end-customers" on the 1st of each month.     

What GM does with their books and how the recognize revenue is an entirely different story. 

For proof of this, just read their press release from last month:

http://media.gm.com/media/us/en/gm/news.detail.html/content/Pages/news/u...

It clearly says, "General Motors dealers in the United States reported 178,896 total sales in January...."

It does NOT say, General Motors delivered 178,896 cars to dealers.....

It does NOT say, General Motor's dealers purchased 178,896 cars from GM factories....

It clearly states that these were cars sold to customers by dealers.  

Furthermore, in the footnotes of monthly sales, it will always give the number of "selling days" which excludes Sundays and sometimes will include an extra day like February 29th of this year.  This, again, proves that we are talking about dealership sales.  Those transport trucks and factories run 365 days a year, except when some are shut down like the Volt factory for 5 weeks in the coming days.  

Max Fischer, Civis Mundi

Thu, 03/01/2012 - 13:58 | 2213290 tarsubil
tarsubil's picture

Haha! Look up the year to date sales for GM. -2.2%. Yeah, they need to increase the dealer inventory by 10%! Smart move with gas prices spiking! Everyone is looking to buy right before a possible deflationary collapse!

The numbers are interesting. YTD sales of Lambos up 100%. The rich get richer.

Thu, 03/01/2012 - 14:54 | 2213540 Zymurguy
Zymurguy's picture

No, your logic makes no sense.

Look Max... it's called INVENTORY... that means cars or good sitting ready to be purchased.  It's a stand alone number and is irrelevant to sales.  Once a car is sold it's not in INVENTORY any longer... sheeesh, fook me man.

Thu, 03/01/2012 - 15:06 | 2213589 Max Fischer
Max Fischer's picture

 

 

It's a constant churn, lady.  The inventory is always turning.  The big mega dealers often have a steady $10M - $20M in inventory and sell 300+ per month.  In the old days, some dealers were doing 700+/month. The fact that inventory levels are increasing and sales are aslo increasing only demonstrates that dealers are loading up in anticipation of bigger sales which is typical for the Spring and Summer.  If sales were DECREASING while inventories are increasing, it would tell a different story. 

Go back to the Hofbraushaus, fraulein.

Max Fischer, Civis Mundi

Thu, 03/01/2012 - 18:35 | 2214882 New_Meat
New_Meat's picture

Max:

"The inventory is always turning."

Sometimes turns fast, sometimes turns slow. 'course, once the channel is stuffed, then it is off of GM's books and onto the dealer's books, with the vig taking a bite out of each captive dealer (they do remember 2008/9 after all).  So unit sales might even go up for a skosh' but margins will come down at the dealers.

One could almost say "it's unsustainable!"

- Ned

Thu, 03/01/2012 - 18:59 | 2214960 FlyoverCountryS...
FlyoverCountrySchmuck's picture

Bullshit...

GM is running full-out, building cars no one wants buy, to pump up Obama's Manufacturing Index numbers. That's why GMAC/ALLY is forced to give loans to 450 Credit Score Credit Criminals to move the inventory. OH WAIT... MSNBC 'forgot' to tell you that part of the story, eh?

What good is Government owing a car company if it can't be used for election propaganda?

What the hell, it's not like OBAMA and his cronies actually have any of THIER money in the game. What's a few hundred billion in tax dollars, compared to THE GLORY OF THE MESSIAH OBAMA?

Nothing matters but maintaining the illusion until after the election. NOTHING...

 

Thu, 03/01/2012 - 19:36 | 2215056 Max Fischer
Max Fischer's picture

 

 

There's nothing in your post that is accurate, particularly the notion that ALLY is "forced" to give loans to 450 credit scores.  ALLY is a prime bank that does virtually NO subprime loans and NO ONE forces them to lend outside of strict guidelines.  For you to say that NO ONE wants a GM vehicle is absurd.  They sold over 209,000 vehicles last month, which was 30,000 more than Ford in second place.  

You goons concoct extremely bizarre scenarios that are just flat-out false.  No wonder you guys are so pessimistic.  If I thought ALLY was forced to give 0% loans to 450 credit scores, I suppose I'd be a doomer goon too. 

Max Fischer, Civis Mundi

Sat, 03/03/2012 - 16:45 | 2220163 Real Estate Geek
Real Estate Geek's picture

ALLY is a prime bank that does virtually NO subprime loans and NO ONE forces them to lend outside of strict guidelines.

 

Wrong again! The below article is titled: Ally Financial bets on risky subprime car loans

 

http://www.reuters.com/article/2011/05/31/us-allyfinancial-idUSTRE74U4FY...

 

Sat, 03/03/2012 - 17:07 | 2220212 Max Fischer
Max Fischer's picture

 

 

No shit.  One of your Luddite cohorts already linked the exact some article a few posts below.

I already responded to it. 

Max Fischer, Civis Mundi

Thu, 03/01/2012 - 13:31 | 2213176 mayhem_korner
mayhem_korner's picture

Must be QUITE a spring, considering they've been building up inventory for 3 years in anticipation of this event!

 

Which raises the question - what do they do with all the prior years' overhang.  Can I get a "new" 2010 Chevette if I dig through the pile?  Or do they send those to some graveyard or "fleet" somewhere?

Inquiring minds want to know.

Thu, 03/01/2012 - 15:38 | 2213811 tarsubil
tarsubil's picture

I know someone who bought a Camaro at below cost and paid cash. The dealer was a little upset. Especially, since this guy predicted he'd end up buying the car for that price 6 months prior.

Thu, 03/01/2012 - 18:38 | 2214887 New_Meat
New_Meat's picture

"Or do they send those to some graveyard or "fleet" somewhere?"

Been to National, Hertz, other usual suspects recently?

- Ned

Thu, 03/01/2012 - 13:24 | 2213143 Dr. Richard Head
Dr. Richard Head's picture

How about

GE “Forcing” Employees Into Chevy Volts; Opt Outs Won’t Be Compensated For Expenses

http://exposethemedia.com/2012/02/23/ge-forcing-employees-into-chevy-volts-opt-outs-of-volt-program-wont-be-compensated-for-expenses/

Thu, 03/01/2012 - 13:55 | 2213293 slewie the pi-rat
slewie the pi-rat's picture

 

are you here to see tyler?  L0L!!!

comrades,
we must support the bankstershipEnterpriZe
there is no love if you do not obey
our union started driving our own cars years ago
the fact that they were never this fuking shitty and styooopid = zzzzilch
we're getting them almost free and people still don't want them?
dammit!  this isn't funny, comrades!

 

Thu, 03/01/2012 - 13:27 | 2213156 Moneyswirth
Moneyswirth's picture

 The reason for the increase in inventory is due to huge expectations for Spring sales.  

Ha ha ha ha ha

Is that what you're government-taught economics professer taught you?  Ha ha ha ha ha

Thu, 03/01/2012 - 14:45 | 2213513 Kayman
Kayman's picture

So... we can expect a further surge in inventory like last year ? 

Expections.... were unexpectedly wrong....

Fri, 03/02/2012 - 20:35 | 2218689 californiagirl
californiagirl's picture

YOU ARE WRONG.  SEE PAGE 98 OF THEIR MOST RECENT 10K

Revenue Recognition
Automotive
Automotive sales and revenue are primarily composed of revenue generated from the sale of vehicles. Vehicle sales are recorded when title and risks and rewards of ownership have passed, which is generally when a vehicle is released to the carrier responsible for transporting it to a dealer and when collectability is reasonably assured. http://phx.corporate-ir.net/phoenix.zhtml?c=231169&p=irol-SECText&TEXT=a...
Sat, 03/03/2012 - 01:22 | 2219218 Max Fischer
Max Fischer's picture

 

 

No.  I'm NOT wrong.

This is the second time you've posted this, and I answered it above. 

Max Fischer, Civis Mundi

Thu, 03/01/2012 - 14:31 | 2213459 whoisjohngalt11
whoisjohngalt11's picture


My take on this is that the Gov't genuinely knows the homeless have to live somewhere and are preparing accordingly.

 i hear those Volts stay toasty..:-)

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