The Latest Parabolic Chart - GM Channel Stuffing

Tyler Durden's picture


Uh, what is going on here? Is GM trying to stuff its dealers with so many vehicles it makes the AAPL parabolic chart appear flat as a pancake?

And somehow GM misses street expectations of a 19% Y/Y increase in March sales, posting an 11% increase to 231,052 total GM vehicles. Total GM sales in February were 209,306. In other words, net of the 46K cars "stuffed", GM would have posted a sequential decline in sales?


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Tue, 04/03/2012 - 10:43 | 2312890 SheepDog-One
SheepDog-One's picture

Go Gubment Motors, GO!

Tue, 04/03/2012 - 10:45 | 2312897 Cdad
Cdad's picture

Woot!  Channel stuffing, bitchez!

If they can take inventory to 1 million plus units, imagine the demand for GM cars that will be generated by those full lots. /sarc

Tue, 04/03/2012 - 10:50 | 2312925 SheepDog-One
SheepDog-One's picture

And with gas demand plunging and prices skyrocketing, HOLD ON for broke retail to surge in any minute and buy up all the Volt inventory for $45,000 a pop! Oh, its surely a GREAT DAY in amerika uber alles!

Tue, 04/03/2012 - 11:00 | 2312978 DeadFred
DeadFred's picture

Rising gas prices and record auto inventories seem like such a winning combination. I'd almost be bearish on GM if they weren't back by the full faith and credit of... Oh yeah.

Tue, 04/03/2012 - 11:02 | 2312987 Oh regional Indian
Oh regional Indian's picture

They are waiting for the boom once this recovery takes hold.... y'know, green shoots... /snark



Mon, 06/25/2012 - 10:27 | 2557717 kall
kall's picture

Good point! This is not the happiest time for the American auto industry. If you check some car donations statistics you'd be surprised to see how much the number in these parks has grown, a lot of people cannot cope anymore with the high gas prices. Apparently the auto makers don't seem to be aware of that...

Tue, 04/03/2012 - 10:54 | 2312933 tarsubil
tarsubil's picture

The lot I saw last weekend was so overflowing with cars and trucks it was ridiculous. Time to bail them out. Don't worry, they'll pay us back with printed helicopter money.

Tue, 04/03/2012 - 10:55 | 2312953 jcaz
jcaz's picture

Yep- dealers in my area (Orlando) are renting lots to shuffle off inventory-

No doubt, this will be spun by the talking heads as a "boom to the commercial real estate market"


Tue, 04/03/2012 - 11:44 | 2313170 NotApplicable
NotApplicable's picture

The otherwise empty local bowling alleys and strip malls are happy for their business.

Because, as we all know, the world needs more new vehicles to sit around and depreciate!

If the sheeple do not yet understand the concept of mal-investment, they'll be hard pressed to avoid observing this waste.

Then again, it will likely be spun as "growth."

Tue, 04/03/2012 - 11:58 | 2313211 The trend is yo...
The trend is your friend's picture

most comercial real estate bag holders only have halloween to look forward to.  At least that pays the tax bill.  Perhaps.  This, and we have more retail space coming from Best Buy

Tue, 04/03/2012 - 14:13 | 2313820 gloogle
gloogle's picture

The dead mall here has tons of new cars on its lots.  The only new cars I see being driven around here are Kias and Hyundais.


But we visited B-I-L in D.C. a couple of weeks ago, and BAM!  Could not believe all the new Lexi, Infinitis, BMWs and Benzes.  Holla for the tax dolla, y'all!!!

Tue, 04/03/2012 - 12:46 | 2313396 sessinpo
sessinpo's picture


The lot I saw last weekend was so overflowing with cars and trucks it was ridiculous. Time to bail them out. Don't worry, they'll pay us back with printed helicopter money.



Typical advertisement in paper from one dealer says thousands to choose from. In previous years, a typical dealer would have 300 or so cars that would be a months supply. Local walmart parking lot now has part of parking lot sectioned offed and some dealer's cars are now there.


Tue, 04/03/2012 - 12:15 | 2313279 CrashisOptimistic
CrashisOptimistic's picture

FYI, NYT reports average credit scores of car buyers are now at an all time low, but they are being given loans anyway.

Tue, 04/03/2012 - 14:04 | 2313768 gloogle
gloogle's picture


Tue, 04/03/2012 - 13:39 | 2313659 FeralSerf
FeralSerf's picture

Imagine the demand for more parking places on those lots.  This may be the answer to the CRE problem.  The goobermint will just lease all that vacant space to store the taxpayers' many new cars.  Win-win!

Tue, 04/03/2012 - 14:06 | 2313782 DCFusor
DCFusor's picture

Funny, they shut down the Hammantrack plant because Volt inventory was building up - yet last month they got record sales of it and a few others, mostly other high gas mileage cars.  I dig the reflexive GM-hate that's going on here, but really - if they were channel stuffing to excess every month as reported here, dealers wouldn't have room on their lots for more.  Except, duh, they do have plenty of room, those cars are getting sold.  Pretty hard to find a last year's model still new out there.

Obviously it never occurred to anyone here that the serious threat of going out of business for real, and losing all their jobs for real, caused GM to at least temporarily stop "resting on their laurels" and make some kick ass cars, at least for now.  Try a Camaro SS if you like hot rods.  I liked mine, but traded it in for a Volt, which is a better car for me, sitting there charged up on solar power in my driveway - nice cost of operation.  The Cruze I bought while waiting for the Volt, to have something economical to drive (Camaro fun, but hardly cheap) - nice car too, though obviously a total econo-box as cheap as it could be made.  Still kicked ass over everything else in the price range, and you know what?  Dealer bought it back, cash, for not much less than I paid for it - 6 months later.  They're having trouble keeping enough on the lot, and they sold mine, at a profit - 2 days later.  But oops, positive facts aren't welcome here, I forgot.

But then, ZH has predicted 127 of the last two recessions!  Way to go boys!  All I have to do is Stolper y'all and I make money.

You all laughed at Warren when he bought 15 bil of BAC at 5 ish.  Now it's what, 9.49?  Yeah, totally stupid move, Warren.

Look, we all know where this is going to lead, so the stopped clock bullshit isn't worth so much anymore.  It'd be a lot more useful to have a better feel for WHEN, which ZH always says " a few more days" - eg wrong for the last few years, every single time.


Tue, 04/03/2012 - 14:46 | 2314009 prole
prole's picture

Now we know who's getting some of that GM bail out money.

Which you probably promptly parlayed into the purchase of a new Beamer.

The Trabant commercials on TV are equally annoying as your pro-Trabi post.

Tue, 04/03/2012 - 20:39 | 2315120 Mr. Lucky
Mr. Lucky's picture

My 2006 car is my favorite color; paid for.

Tue, 04/03/2012 - 10:43 | 2312894 jus_lite_reading
jus_lite_reading's picture

GM is preparing for Obumbo's new "Hoodies for Cars" rebate program, which happens to be hidden in plain sight in the ObumboCare bill.... 

Tue, 04/03/2012 - 10:56 | 2312956 Normalcy Bias
Normalcy Bias's picture

40 acres and a Volt. Reparations BiTcHeZ!

Tue, 04/03/2012 - 14:10 | 2313803 DCFusor
DCFusor's picture

Got mine - both.  And solar power, and food and ammo and guns and beans and bullion and water and two cars with under 10k miles between them and-and-and.

And a shop, a farm, tools to make more stuff as required.  Even EMP proof electronics.


Even if the S don't hit the fan, it's a more fun way to live than as a cube-slave in a city.  Not a hard decision at all, in hindsight.  Like Kyle said "just give me the gold" and move on.

Tue, 04/03/2012 - 11:02 | 2312986 FlyoverCountryS...
FlyoverCountrySchmuck's picture

Your satire isn't far off the mark. GM has been channel stuffing, FOR MONTHS, with ALLY/GMAC buying 450 score credit criminals on new cars, FOR MONTHS, to boost Obama's economic output numbers, like those being hailed in the mainstream media today. (Remember when that SAME media said numbers like these were "Anemic!" in 2007/08?)


Isn't Fascism wunnerful? Using your own tax money, BY THE BILLIONS, to create election propaganda. Orwell was correct in his predictions, you know. He was just predicted this 30 years early.

Tue, 04/03/2012 - 11:29 | 2313112 zuuma
zuuma's picture

Well said!

And don't forget that from each, UAW-produced car, Obummer gets a big kickback for his re-election/shush fund from all those union dues.



Tue, 04/03/2012 - 14:13 | 2313823 DCFusor
DCFusor's picture

Yup, even though the Unions (which I happen to hate) took big cuts "or else" - and sold the major stake they wound up with in GM stock at a loss, because they couldn't play their bullshit game of "it's all managements fault" when they WERE management for a little while there.


So, the D's take care of the medical insurance biz and unions, and the R's take care of big oil - they both take care of everyone else, if the bribes, er, campaign contributions tell you anything.  I kind of like the idea put up here a while back where the politicians should wear stickers advertising their sponsors.  But they'd have to be even fatter to have room for them all.

Tue, 04/03/2012 - 10:45 | 2312901 Vincent Vega
Vincent Vega's picture

Just wondering from other ZH reader' you see many new cars driving around? Pre 08 it seems like all I saw was drive out tags. Now I rarely see any and if I do they are usually on a used vehicle. I drive an 05 and have no plans to buy another vehicle any time soon.

Tue, 04/03/2012 - 10:49 | 2312920 Pairadimes
Pairadimes's picture

Taking very good care of my 07 Infiniti, and hoping it will run until I am forced to dig my savings up out of the backyard and escape to Belize.

Tue, 04/03/2012 - 15:00 | 2314076 prole
prole's picture

To answer Vincent- I live under the dark gaze of Mordor, so you see plenty of Neo Cars around these parts. In the Maryland suburbs it's Beamers Benzes Lot of Hyundai new Sonatas (even the non-rich buying these). Soccer mom and dads huge SUV war vehicles.  Lot of American cars being bought (NOT) all driven as semi-undercover police speed trap cars. I try to stay out of DC to avoid the gunfire, so I don't know about what you see there, but in the choicer parts of NOVA (Northern Virginia, adjacent to Mordor) you have never seen so many Porsche 4-doors, almost any trip through you will see some manner of "exotic cars" Either a Ferrari Lambo or one of those Acura or Nissan? Whatever sports car.

(Forgot to mention Maserati, honorable mention the random Maserati)

Point- Northern Virginia lot of wealth being flaunted on 4 wheels

Full Disclosure- I'm guilty too in my modest little way!

Tue, 04/03/2012 - 16:27 | 2314497 paulbain
paulbain's picture

Prole wrote:


Point- Northern Virginia [has a] lot of wealth being flaunted on 4 wheels.



I am inclined to agree. I live in Northern Virginia, too, and I see plenty of conspicuous consumption here.

BTW, when Prole writes of "Mordor," he means "the District of Columbia." 

-- Paul D. Bain

Tue, 04/03/2012 - 10:51 | 2312934 SheepDog-One
SheepDog-One's picture

I saw some guy in a Range Rover delivering pizzas.

Tue, 04/03/2012 - 10:55 | 2312951 101 years and c...
101 years and counting's picture

a guy driving a newer model BMW delivered my pizza last fri.  i didnt tip him. 

Tue, 04/03/2012 - 10:58 | 2312968 ffart
ffart's picture

Are you black?

Tue, 04/03/2012 - 11:04 | 2312998 Hippocratic Oaf
Hippocratic Oaf's picture



I logged in just to give you an up-tick

Tue, 04/03/2012 - 11:10 | 2313029 IAmNotMark
IAmNotMark's picture

Wow!  What a jerk!  You didn't tip the guy that is out working, doing his job, just because of his ride? 

I'm guessing the next pizza you order from that place comes with spit, no extra charge.



Tue, 04/03/2012 - 11:54 | 2313200 Theta_Burn
Theta_Burn's picture


Tue, 04/03/2012 - 12:00 | 2313220 The trend is yo...
The trend is your friend's picture

You realize it was probably the owners car or a borrowed car from a family member just to make a little money off of tips and delivery

Tue, 04/03/2012 - 12:22 | 2313300 Blythes Master
Blythes Master's picture

Not to worry folks, non tippers get 'special' ingredients the next time around.

Keep that in mind the next time you even think about stiffing the pizza guy.

Disc: Former pizza guy in charge of the 'special' ingredient section.


Tue, 04/03/2012 - 13:45 | 2313686 ceilidh_trail
ceilidh_trail's picture

Jesse Jackson, is that you? Oh yeah, I forgot, he aded his ingrediants at a country club, if my feeble memory is correct...

Tue, 04/03/2012 - 13:02 | 2313481 zerozulu
zerozulu's picture

Time is changing very fast. Last summer at a yard sale lady of the house told me she is selling stuff just to put food on the table. People should help each others if possible.

Tue, 04/03/2012 - 12:44 | 2313394 Freddie
Freddie's picture

You must live near me.  Papa Johns?  The slightly smaller one - the Discovery.  I would guess a 2002 or older. Not the real small one.  Dark green or something? 

They get absolutely sh**ty gas mileage too.  A neighbor's daughter bought one years ago.  She was horrified because it got about 10 mpg avg.  I could not believe it.  She got rid of it,

Tue, 04/03/2012 - 10:52 | 2312938 Common_Cents22
Common_Cents22's picture

I see tons of new Chevys driving around everywhere.   funny thing is though, every one of them has government plates.   Your tax dollars at work! re-electing obama.

Tue, 04/03/2012 - 10:58 | 2312969 SheepDog-One
SheepDog-One's picture

Sure, most all of the sales are govt fleet purchases. This is nothing but fascist communism. Except in communism the people benefit, at least a bit, so this is actually worse than communism because govt is just saying 'Go fuk yourself' to the people.

Tue, 04/03/2012 - 11:10 | 2313025 Common_Cents22
Common_Cents22's picture

It would be interesting to see a chart of fleet sales to govt and GE etc....  chevy vs. ford etc...    I would think Ford fleet sales have taken a decline against chevy fleet sales to govt and GE type govt crony companies.


GM should take a few hundred billion and buy up all the remaining car rental companies.  instant new car sales!  Obama can do a cash for rental clunkers deal to pay them for the old cars.

Tue, 04/03/2012 - 12:47 | 2313407 Freddie
Freddie's picture

Ford also is getting a lot less cop car sales anymore.  Lots of crappy Chrysler cop cars.  Chrysler's stuff just falls apart.  

Tue, 04/03/2012 - 11:06 | 2313011 Abitdodgie
Abitdodgie's picture

I live in North Dakota and everyone has a new pickup that does 10 miles to the gallon the best is the new dodge diesel if you leave it to idle for more than 15 min you void the warranty , the 2500 dodge diesel gets on average 7 to the gallon , I have a 87 GMC 6.2 diesel and it gets on average 21 mpg , but who cares I should buy a new one and get rid of the old POS , and now with ALLEY finance is a breeze. Finally I can do my bit for the oil companys, and the economy

Tue, 04/03/2012 - 11:11 | 2313036 Common_Cents22
Common_Cents22's picture

NoDak is an anomaly w/ the oil industry boom.  People actually have jobs drilling on private property.  obummer trying to take credit for it.

Tue, 04/03/2012 - 11:21 | 2313071 Abitdodgie
Abitdodgie's picture

I am about 6 hours away from the oil boom , but I was talking to a welder who works there he was making over 20,000 a month and they cannot get the people to work up there he said the "come buckets" are making 2-6000 a night , the money up there is unbelevable.

Tue, 04/03/2012 - 13:34 | 2313623 delacroix
delacroix's picture

bullshit on the 20 mpg 6.2 v-8 gm diesel, and bullshit on the 7 mpg 6cyl dodge cummins diesel.

Tue, 04/03/2012 - 15:59 | 2314373 Kayman
Kayman's picture

"bullshit on the 20 mpg 6.2 v-8 gm diesel, and bullshit on the 7 mpg 6cyl dodge cummins diesel."

Too true. GM V8 diesel, probably the worst engine ever built.  Cummins diesel, easily 16mpg, depending on how you drive, and transmission etc, you can get 20mpg.

Tue, 04/03/2012 - 10:54 | 2312943 BeerBrewer09
BeerBrewer09's picture

I notice a lot more cheaper new cars, if at all. Mostly Kia, Toyota Prius, or anything else that's a cheaper/money saving vehicle. Hell, we traded a civic in for a Prius because of the incentive they offered back in early February. I expect to see a lot of men riding their bikes to work this summer.

As a side note, I am baffled at how many cars I still see on the road. Living in a town with a University full of 8,000 students (50% commuters), there is no way these kids aren't putting their gas purchases on credit cards, be it their own or mommy & daddy's. Inflation is rearing it's ugly head, and it will only get worse.

Tue, 04/03/2012 - 10:58 | 2312970 Vincent Vega
Vincent Vega's picture

Funny you should mention bikes...I bought one about 6 weeks ago and have been riding it to work. I'm 54 yrs old and it's about 15 miles round trip. I bought it mainly for exercise but when gas goes to $6, 7, 8...i will ride more often than i currently do.

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