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GM Channel Stuffing Surges To All Time Record
In the past two months, everyone has been scratching their heads just how it is possible that the US manufacturing base continues to chug along at pre-recession levels even as the world all around America burns? Today, GM may have given the answer, courtesy of its monthly disclosure of car sales which at the top line is completely irrelevant as the funding for these purchases comes almost entirely from subprime loans handed out by the government to NINJAs. What is interesting is the little blurb in every monthly report discussing the amount of dealer inventory, a topic well-known to frequent readers of Zero Hedge which has discussed GM's pervasive channel stuffing in the past, and which subsequently went quite mainstream. So how does November channel stuffing stack up? As the chart below shows, at 623,666 cars, it is an all time absolute record, and represents about 3.5 times the total GM vehicles sold in November! It is also a 31k increase in the past month, and 85k cars more in inventory than in July. Because when economic growth at all costs is needed to demonstrate just how viable America is, and a semi-nationalized car marker is one of the only conduits to "generate" economic growth, it does not matter if the end product is actually demanded or will simply corrode and rust in some dealer showroom in perpetuity. After all it is the act of building the car that matters for various monthly PMI, CMI, regional Fed and GDP purposes. Pretty much exactly like in China's goal seeked "economy." So the next time someone asks just how is it that the miraculous US decoupling continues, please point them to this chart.
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Should be some good new "Re-po Man" reality show episodes in the making.
The greens need to start protesting the Volt for all the emissions it pollutes the atmosphere with....when it burns up
The Volt will do wonders for the coal industry, I love that little car. Come on tree huggers, get on board.
Yeah, my coal etf could use a little nudge!
Betting on coal is like betting on the Brittish Empire in the 19th Century.
I'm sorry, "tycoon" matchmaker?
What will we do? Use coal liquids? That worked wonders for Hitler and his Nazi party after they had their oil supply cut off from the US.
Dilithium Crystals?
TD, where is the update about GM buying back all the volts due to unknown fire issues?
Seriously folks. Seriously. What a fall eh? From the company that gave us the Sting Ray, we now get the Volt.
The crash of the US Auto industry so mirrors the crash of the USSA. And Detroit is fractally the withered center of it all.
Quite the study in social anthropology.
ORI
/the-plan/
Tyler
I respectfully disagree with your assertion that most of GM's sales come from subprime loans. If you offer some proof of that, I'll gladly admit my error.
Furthermore, your claim that NINJA loans are back at GM is not accurate, either. GM's subprime arm is AmeriCredit, and they require proof of income on absolutely - no exception - all loans.
Additionally, GM dealerships are able to choose from a wide variety of subprime lenders, all of whom have their own individual underwriting standards. These lenders serve the ENTIRE car business, not just GM. Dealers simply choose which lender pays out the most "reserve" (interest) kickback and largest advance (front end gross profit).
I'm not trying to be a jackass. Just trying to help expose the truth, for better or worse.
Max Fischer, Civis Mundi
Hmm. Where have we heard this before?
http://www.zerohedge.com/news/student-loan-racket-complete-infographic#c...
"Tyler,
I respectfully disagree with a point in your article. With regard to car sales, you're connecting dots that simply cannot be connected.
You claim the surge in car sales is due to GM's subprime loans, but you provide no proof of that. You simply provide a link to a MarketWatch article from the summer of 2010 when GM purchased AmeriCredit. Do you thinkall car sales are anchored to AmeriCredit? In other words, is the balance sheet of AmeriCredit a mirror of the entire car business? Furthermore, do you think all GM's subprime loans go to AmeriCredit? Where's your forensics of AmeriCredit's portfolio and of GM's sales?
You're cynically trying to say that the surge in car sales is directly rooted in GM's subprime loans, and this just isn't correct. I think you're trying to make it look like GM's only business is subprime, and that the only reason car sales have surged is due to GM ratcheting up their subprime portfolio.
And this is just false.
We want truth, not propaganda. If you insist on spinning everything negative, then you're no different than CNBC who spins everything positive."
I'm starting to think he's is another personality of MDB. He's right about how GM and all the others put a deal out on the wire and see who'll take it but, they all have their in-house specials for the ones that can't get bought or that won't fly. Subprime is totally back on both levels.
Max, Max, Max ......
During the Dallas game on thanksgiving GM ran several ads for the Silverado. They included the financing: 0% for 6 years. How many subprime lenders, other than Uncle Sugar, lend money for 0%? They can barely get the jim-bobs back into the dealership let alone sell them 4% interest on a truck loan. Talk to anyone with a new GM and you get the same answer: ZERO INTEREST LOAN!!!!!!
Talk to real people on the street and you'll find your proof. They fogged the mirror and won the prize at the GM dealership. Lucky them.
Si Si Puede! GM = the muslim's car company. He and Jon Corzine are the leaders of the Democrat Party.
I wasn't ever going to buy GM after their backstabbing of Saturn, but they are practically giving trucks away compared to Ford, and I have a near 20 year relationship with the people at the dealership, and bought a Silverado in July. It was loaded, and in the range of 15-20K less than a comparable F-150 (which Ford has actually been making worse over time IMO, we have late 90's to a 2011 at work, we call the 2011 "the Enemy" and "Blind Spot").
The financing was 3.75% on a 66 month loan and I put 2K on it to get the payment under $400, no docs, but then again I've bought 5 new vehicles at the place over time.
I agree, they do have some offers that are hard to refuse these days, I think GM is leading a survival mode strategy and I think that's wise of them, I read few news about it on partsgeek.com. I would buy a GM if I had the money today, after all I would be supporting the local economy.
The British Empire was a pretty sure bet throughout the 1800's so you either think coal is a good bet (which it is 'cause you can do a lot of stuff with it and it's got awesome chemical energy density), and have a brain, or think that 19th century = 1900's (when the British Empire began it's slide to oblivion) and don't like coal for irrational or ignorant reasons and are a dumbass...
Which be it?
I hope the tree huggers keep buying them. We will see Darwins work again!!!
Dar-Winning! Have you hugged your Volt today?
And did you live to tell about it?
Yeah, I've got some of those energy stocks too. Can't wait to get a Volt for a few ounces of silver.
What a farce electric cars are. http://www.youtube.com/watch?v=MRT9dxq9Dwk
We need the big fucking V-12's. 675 horsepower to get to Walmart. Buy a scented candle and fucking come home. 8 miles round trip. 12 gallons of shiz burned! Bitchez! Yea!
I think electric cars are a great addition to the choice of vehicles.
But only if electricity is too cheap to meter otherwise they're just stupid. Also the purchase prices are not for financially sane people.
All these dumb-fucks riding around in their elec-cars thinking how cool they are.....so....where does all that electricity for the cars come from?? Why of course...COAL, OIL, GAS, NUKE and some HYDRO and minor bits of wind and solar. So what REALLY powers the electric Car??
Atlantean zero point modules.
SPICE!
THE SPICE MUST FLOW!!!
or you could just get a honda accord that gets 23/34mpg or maybe a civic that gets 30/40mpg and costs 50 to 75% as much as a volt and doesn't catch fire or break down like a government motors car
The Chevy Volt is a scam and the Hummer is more earth friendly than the Prius - report here. Just basic science ..... amazing how people can't grasp the basic laws of physics, etc. Well off to Walmart I go to buy some plastic from China, chow!
LOL that report had the average hummer H1 lasting 35 years and going 350,000 miles! That's hilarious.
or protest the pollution from shitting GM shares all over the place. $20.96 today, not even plumbing its latest low of $19.05...what did it IPO at again?
I'm a "value investor" - do you think it time to go all in?
I mean, after all it's not like it can go broke, well , permanantly.
Personally I'm waiting for Warren to give me some direction.
sarc/
He already did...he bought in big to that Chinese elec-car Co. Go for it Dude!!
uh, believe it was 32 fiatscos and a pence or two. I seem to recall GM disclosing its internal controls were missing before issue, no..?? It got slurped up anyway.
$32/$33
Scull and Bones, bitchez!
it also catches on fire too sometime, which the new owner would surely appreciate after being screwed for the money they charge for that piece of shit.....
Is the Volt selling? I think it's ghey.
Jay Leno's daily driver is a Volt. He put on 11,000 miles so far and has used 1/2 tank of gasoline in one year.
In fact, they are so awesome, that GM wants to buy them back: http://www.theglobeandmail.com/globe-investor/gm-offers-to-buy-back-chevy-volts/article2256947/
You like riding a bomb when you drive, you're just that kind of guy. See, hey put this holllow box under yours and fill it with an explosive used by terrorists everywhere. They get to scrimp on quality and safety because no one sees it. They put electrical contacts near it, and exhaust systems hot enough to ignite it, and then to make it better, they put it where it will collapse in an accident and open up.
You ever seen one burn with people inside?
It's not really called the Volt, it's really the GM Pinto!
Calling Ralph Nader...
Not if they can't sell the cars.
HEY! If the economy totally recovers and even grows 50%, THEY will be prepared and will be able to sell every American + aliens 2 cars each! Now YOU tell ME which brand will be able to do the same smartpants!
Well, if you factor in the spontaneous combustion feature it is really more like 1 each, but you make a good point (just need to get that 50% growth thingy going). LOL
yep manthong. except the re-po man viewers might figure they're just reruns and switch channels. "ahh it's the GM car one again. seen it!"
No one is taking back Chevy's, maybe a Ford or Honda, but not a Chevy.
I love my new Escalade, I sure hope congress extends my unemployment benefits so I can keep making my payments, I'd sure hate to lose it with only 7 more years until it's payed off. I'm thinking about getting a new big screen TV next, so I'll be more comfy in my mom's basement.
Why not? GM is no dummy- if they fuck up again, they know the guberment will bail them out again.....
Absolutely no incentive to put out a good, safe product. N'Obama's pay-back to the UAW was, in his mind, a rousing success.
Obama and Jon Corzine = leaders of the Democrat Party
Why are you leaving out the effing ring leader Axlrod?
Isn't Ally Bank making a lot of high risk credit car loans?
Sign, drive and repo financing plan
clever
GM offers to buy back Chevy Volt lemons. What a fucking joke. But remember, it's the ampres, not the volts.
http://content.usatoday.com/communities/driveon/post/2011/12/gm-general-...
yeah. also keep in mind that you're safer as long as you stay inside those electrified death traps and don't try stepping out of the car to ground.
or maybe not. i better check the owner's manual again.
Excess Inventory Solution:
Place Chevy Volt in middle of lot and watch all the inventory burn to the ground.
I'll never buy a volt or a ampres. I'm waiting for the shortcircuit turbo!
I don't think they make those for handicaps.
I would take one if they gave it to me. I have plenty of property so I can park it away from the house so if it burns up the house and shop are safe. Wait a minute, if I do that how do a recharge it? Never mind!
Wow, Thats not good.
Greenspan wanted to burn down surplus housing. The Chevy Volt does that quite well. Hope that technology has been adapted across all GM lines. What inventory problem?
Simply park all Volts in surplus home's garages. Housing + autos solved. Economy booming. Obama reelected.
It's Obama motor's cash for clunker time again? How about a volt for $15K, courtesy of government motors?
The volts that catch on fire are the Fiero models.
Good idea! Let's put that in the idea box!
Let's just say that every car with more than 1000 miles on the ticker is a clunker... And if they give 30.000 dollar for each cluncker... And sell new cars for 20.000 dollars..... And drive every new car on the rolers untill 999 miles.... We might get the economy rolling again!
This is nothing new. Japan's been doing a form of this for years. Where did you think all those remanufactured engines shipped to the US came from.
And we all know how good a shape Japan's economy is doing.
electrical fires around gas tanks are cool.
I am stuffing gold and silver into my Chritmas family stockings this year! I can't beleive anyone bought a Volt....must be the same people who watch Dancing with the Stars!
Shut up or my smartcar will ram you. .999 fine myself
I have the ultimate "smart car".......clear title, no payments.
Not a lick of debt myself and standing way outside the spend your way to prosperity western bankstering muggers.
I saw a Smart car after an accident on the Grand Central Parkway. The occupants who continued their journey in an ambulance under went the bug in jar treatment.
I've seen them entering the interstate during heavy traffic, or should I say trying, as the concept of reaching traffic speed is not an option.
Must do wonders for the blood pressure.
I'm not sure even a Dancing with the Stars watching clown would buy a POS such as a Chevy Volt.
For a minute there i thoght you said you were stuffing gold and silver into "your familys christmas stocking".
Hey.....bro......
Where should I hang my stocking...?
I BELIEVE! Match my sack of rocks to your hammers any ole day.
Now for the educational US grad ceremony. One pet rock for you, and you , and you you you you. LOL Freedumb reigns.
Hyundai does not have to channel-stuff down here in Peru. They SELL the cars people here want. And they are selling lots (of their Kia brand as well).
I just arrived. The local economy is doing just fine. I see lots of brand new Brazilian buses and trucks (VW Brazil).
It´s almost summer as well. Already I am starting to gain weight... Life is good.
Just drove home a new Kia Sorento yesterday. Thank you, Europe, for causing a crush of demand into Treasuries - giving me a nice 4% rate on my refinance and a 2% rate on my auto loan. Oh, and before I forget, thank you, Ben Bernanke, for being insane.
Gotta admit, I own a Hyundai Sonata Hybrid- and not because I give even the slightest shit about the "green factor" or whatever- it's just a cool car, and fun to drive- sneaking up on the cashier at McDonalds is worth the couple grand in premium I paid for it verses the gas version.......
If GM built cars up to the standard that Hyundai/Kia is, they wouldn't have over-stuffed channels to deal with.....
I've got a Kia.
I love burning gas, I just don't like wasting it.
Gubmint Motors did what now?
GM is mainly a banking business now that makes cars on the side so we're fine.
The high end cars were down in sales too, Buick and Cadillac
GM will be hard pressed on giving away the remaining Chevy Volt inventory to meet year end sales forecast.
whats a NINJA?
A masked karate master.
Also a loan made to people with:
No Income No Job or Assets.
No Income, No Job, Application
Thank you kindly
no one can be told what the matrix is, they must see it for themselves...
Thought China was going to start exporting cars to the US? That would make matters worse for GM, Ford and Chrysler.
Buyers? We ain't got no buyers. We don't need no buyers. I don't have to show you any stinking buyers!
Is there some way to break down how many sales/leases are sub-prime? A return to sub-prime lending is likely the real reason people are buying anything (cars, TVs, iPhones etc etc). Give poor trash credit and they use it right away, so it is the most effective and quick way to goose GDP!!!
Of course, later on down the road ALL that debt will go bad and taxpayers will pick up the tab again.
We've gone full Soviet.
Just now?
Uz vill zigns zee guberment guaranteed loan papers.
When I was a child there were frequent TV reports about how Russia's centrally-planned economy delivered obsolescent refrigerators and television s nobody wanted to buy (not cars--those were obsolescent too, but were in short supply and on a waitlist basis). It appears our central planning skills fall short of the ol' USSR.
This chart seems to imply that Government Motors sold 67,000 more cars than it produced in the June/July time period. Is that possible??
It's all guberment forwarded drink bonds. You haven't read about helga's bar have you? Wait until the real globalls power brokers; creditiors call in those forwarded guaranteed loans to unemployed out of work alcoholics who can't pay. Sub-prime auto mortgage loans implosion as housing. What the western bankstering thugs got left for us slavoradors to borrow on. US citizen financial destruction graveyard plots!
I bought a fully loaded GM truck at 0% financing spread out over 6 years through Ally. March 2011. Thank you shit economy.
Does anyone know of any loop holes I can go through to get a bailout on my truck? Maybe pay less interest?
The GM dealers here in Iowa have been advertising the 72 month 0% interest loans recently as well,plus some incentives.
A lot of people around here are fixing what they have instead of buying new though.........
I'm waitin on the deal where they pay me to take one off their hands...Jan 2012 "Deal of the Century".
Gulag Motors.
"GM truck at 0% financing spread out over 6 years "
Chevy pickup depreciates to zippideedooda long before you have made your last payment. Too bad they wouldn't non-recourse finance it over 20 years !
da hose is up your ass before the ink is dry
Put me down for a dozen!
After all it is the act of building the car that matters for various monthly PMI, CMI, regional Fed and GDP purposes.
This is what most people do not understand.
Tyler,
What about other auto makers? Need the data to be convincing.
Also - Tyler's choice of time period is suggestive. Dealers cleared out inventory after the financial crash. You need to see inventory prior to the crash to get a perspective. Inventory now shouldn't be higher then, but it should be about half what it was then - the chart doesn't tell you.
Perhaps the fact that GM is about half the company it used to be pre-Chapter 11 is also something to factor in said perspective, and is why any pre-bankruptcy comparison is completely irrelevant.
...well, at least they saved the "good half"of GM ...Dem voters, that is
Only $31,645*! Buy one today!
*Fire extinguisher not included
Yeah... Only...
Why the fuck would I want a Chevy Volt, when I can get a Kia that's half the price? How much is the energy savings? I mean really? Is the Volt even going to last long enough to make up the difference? Besides, it's not like the Volt is sexier or safer. Use the savings and buy +5 years worth of gas. The only people driving Volts are metro sexual fags of GM unionist parents.
And women, don't forget the women drivers . . .
Looks like the "digging holes" portion of the government stimulus is in full swing. Next, we need to have huge demolition derbies for the "fill the holes" part of the plan.
Henry Ford tried the sledge hammer to the car routine, at the end of the assembly line. Rumor has it, that it didn't work so well.
Why can't I get a job from a US eduCASHtional highly ranked institution. Sheepskins no cheapskin as miles & piles of student gov goon loans to pay off. Line up for food stamps grads and we'll throw in a volt with a guaranteed loan. We'll be spending our way to prosperity until you really get educated. hehehehehehehehehe
and one of their biggest competitors was out of the game...Toyota.....Honda too for that matter...when they come back....GM will really drop ...as compared to the others...GM´s % gain was much lower...
Ghost cars for ghost cities
LOL prains. You got it!
I'm aghast. The top of the line corvette costs three times as much as a small beemer.
WTF
"I'll stuff your channel!"
For the French Speakers
Alli, when taken in large doses, simulates anal leakage.
NO wonder Chicago is always higher. Tons of little tier three suppliers, as well of tier two in this area. This too shall end badly
Tyler- I don't have the subscription any longer but just curious; do you have access to the deliveries to local, state, and the Federal government as a breakdown of the precentage of monthly sales or units sold?
Back in the day, GM used to charge the dealers for their new car inventory under the floor plan. That was how they controlled inventory, it actually cost the dealer money for excess floorplan inventory to sit on the lot. When the govt took them over and closed down the excess dealers, the first thing they did was kill the floor plan model.
That is how you stuff the channels. In a normal world, (i use that term loosely), the chart should be inverse. Compare to Ford inventories, and you can really see the difference.
I can't find a comparable chart or data for Ford. Where might I find that info?
Stoploss
Thanks for that, I'd forgotten about "floorplannning". What a quaint concept!
Something doesn't add up with the volt.
Gov Motors has sold 6142 thru november on a production run of 10K.
Gov Motors is planing on increasing their production in 2012 to 60K.
Where is this demand coming from, is the government planning on buying a fleet of volts?
Oh, and 60k x $7500 eco discount = 450 million tax payer dollars for these 4 wheeled fire bombs.
Last I heard the government had purchased 1/3 of all Volt production.
Not the Government. Instead, Hertz, AVIS and the rest of the rental car companies will sucker the consumer to drive the vehicle under their footed rental cost to sell new volts by a word of mouth marketing scheme. All cars sold to auto rental companies will be subsidized under taxpayer assistance.
It's not about selling....it's about keeping all those union workers employed.
Interested to see how this new car plays out. Might be the new electric trend. they look nice. http://www.teslamotors.com/
Also read on their forum where they are trying to get Tesla to work with this company in allowing a wireless park and charge. Very interesting concept.
http://www.witricity.com/pages/ev-charging-system.html
I love GM cars. My wife has a 2011 Tahoe and I have a 2006 Suburban that I am looking to trade in for a
2012 fully loaded, LTZ suburban which lists at around $64,000. I should be able to get a great deal on one
if the dealer is so overloaded with inventory. Thanks to sites like ZH and 321 Gold, I have been fully invested
in PMs for over 10 years and can now afford whatever car I want.
>in PMs for over 10 years and can now afford whatever car I want.
And you're going to buy GM...and you're Greek. You might want to check out some of that fine German engineering as in Benz, Audi, & BMW, and help support the cause of bailing out Greece while getting a much better car in the process. Just sayin...
Every Greek I have known has been a Democrat. Most of em had money too. My guess is Zorba voted for the muslim too.
@ Freddie ...Zorba has always been a republican and I am rich, but I worked very hard for my $ and invested well. I first gave you a down vote, but then I remembered that I did vote for Obama ( I now regret that ) so I changed it to an up vote. I do have muslim friends and I have many Iranian friends who are very
pro American. I hope the U.S.A. and Israel don't bomb Iran. I am ashamed
of the U.S. killing so many innocent people for the benefit of a few powerful
and wealthy individuals. I will only vote for Ron Paul from now on, even if he
dies.
You think Mc/Palin would have been different/better?
Let me guess,Your wife takes the tahoe to the drive thru Burger King for the evening meal and back home to watch the kids,while you...
You need that new LTZ Suburban to get down to the office two blocks away,and carry your brief case.
@ bankster... I am retired, We use the Tahoe to go grocery shopping and have driven to the Fla. Keys twice this year.
The suburban will be used to travel the U.S. of A. from sea to shining sea. I live on the East coast, but I have a daughter
on the west coast who is a V.P. at BAC. I also have a sister and two married nieces on the west coast, so I plan to visit there as soon
as I get my new Suburban. We never eat at Burger King or McDonalds.
Don't worry. GM will be switching over to build battery powered tanks soon. Green battlefield is in now.
Burn the sheeple in volts, financial western bankstering fiats, drink bonds gone wild, or other ploys; it's ASHES. We all fall down unless you're off of the western bankstering grid. As I've previoyusly stated when the goons kick in my door UNWARRENTED. I DELIVER WHAT THE BLACK ROYAL ILK SELF APPOINTED MASTERS OF THE UNIVERSE DESERVE.
Great spot,
In the UK that exporting powerhouse Germany is practically giving their cars away through subsidised leasing, merc c180 for 212 per month, Audi a6 for 250, golf convertible for 200.. The next step in the USA you lease a car like an iPhone..
You've been had. Again, Mr and Mrs America. You poor slobs.
You just transfered billions to banks through the Fed's latest gimmick. Not even just to failed US banks but banks all over the globe. So that they can have a very, very Merry Christmas this year. They sure needed it!
And now in further news, you've transfered another few billion to failed GM and other automotive companies.
All that money that was transfered out of your account (as a taxpayer) is a debit that will be repaid BY YOU in the following ways: -"Austerity" aka decreased services acrosss the board at every level (Fed and State), decreased healthcare and retirement funds and slower, more crowded courts. -More inflation since loose monetary policy always results in inflation. Your buying power will keep on getting crushed amking the cost structure of your life and business much higher than it is. -Debt for life and for your kids and grand kids.
Great bargain!
GM should export all these cars to China and park them near empty aparment cities! This will take care of trade imbalances, and boost failing Chinese housing, Buy APARTMENT get a GM car!
Half of GM's sales are to China....'s previously empty parking lots.
OH YEA! Gimme one of those GM what the fukks. I have been wanting a new of those for ever...NOT!!!!!
Why should GM let production be determined by demand that such a last century concept
G.M can kiss my butt, never again.
Electric cars, one day, maybe, but right now in the real world, the electric
motorcycle is about to become a product you will see on the street,
Passionate innovators have brought this tech forward by light years in the past few years and not GovCo.Commie.
If you have never seen the Isle of Man TT races, it is worth seeking out and honestly mind blowing, IOM TT had their !st Electric TT race this year and I believe Electric Motorbikes are Tech to watch.
I like a petro-chem Kawasaki myself, but I can see this Electro bike thing, booming, and I would take a spin given the chance.
http://www.youtube.com/watch?v=Dxbj7PxlkSs
http://www.apfn.org/apfn/travel.htm
Electric engines and drive units are more effecient. Petrochemicals will be ample for are lifetimes andstill work much better. Did you go to IOM to see it or on TV? Most of the roads on IOM on the race course have 4 foot thuck and three to four foot high stone wall hedgerows. If a bike hits one - the rider is dead. Those guys have a lot of guts are are a bit crazy.
Here is how you drive a rally car in IOM.
http://www.youtube.com/watch?v=UXV3sEH7PU0
During the last three years GM has consistently ramped up production to built up inventories in November following by a significant production/inventories drop in December.
It suggests that November was the last month of "better than expected" headlines propaganda.