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 - 11:05 | 2313002 FlyoverCountryS...
FlyoverCountrySchmuck's picture

Well, Obama's CHU did say we needed gas prices more like Europe.

 

Only your elected Democrat masters need gas-guzzling cars, anyway, since they are just so much more equalz than you are. Happy pedaling, Prol!

Tue, 04/03/2012 - 13:16 | 2313517 Belarusian Bull
Belarusian Bull's picture

They say, in economics, when supply is bigger then demand, prices should fall. Does this work for crony companies in US?

I sold my car after i noticed, that almost all my friends own one. Since then, i:

1)Never pay any related bills.

2)Always get a free ride (when going out with somebody)

3)Can drink at parties

4)Keep myself fit at summer(bike!)

5)Feel like a lifehacker BOSS.

 

Tue, 04/03/2012 - 11:31 | 2313123 Iam Rich
Iam Rich's picture

Did a double take, saw a Porche SUV yesterday...forget the model name...Cheyenne or such.  Wow.  Who'd buy such a vehicle from Porche?  Convertible 911...YES.  SUV...you've got some money to burn.

Tue, 04/03/2012 - 12:26 | 2313307 GeezerGeek
GeezerGeek's picture

Come to S.E. Florida and you will see numerous Porsche Cayennes as well as large numbers of the BMW Stupid Ugly Venicles. Range Rovers, too. Indeed, there almost seem to be more Mercedes, Audis, BMWs and Lexuses (:exi?) on the roads than Chevys or Fords. Of course, with all the Stupid Ugly Vehicles (SUVs) and Stupid Light Utility Trucks (can I say it? SLUTs) on the streets it's hard to see much from my passenger car. Maybe only those who can afford the high-priced luxury cars can afford the gas. Not as many Hummers are seen any more, though.

And by the way, the Cayenne with the turbo motor is one fun vehicle and isn't as ugly as the Porsche sedan.

Tue, 04/03/2012 - 12:36 | 2313349 Freddie
Freddie's picture

Dupe post - sorry.

Tue, 04/03/2012 - 12:34 | 2313350 Freddie
Freddie's picture

I see lots of Obam voters in Chryslers and GMs.  The sh*t no one else will buy.   Also govt cars plus cop cars.  All Chrysler and GM.  Some of his voters also like Nissan Altimas.

Tue, 04/03/2012 - 14:15 | 2313837 DCFusor
DCFusor's picture

I'm seeing a fair number of new cars these days.  I suspect the cycles are in different phase different places, because not long ago, the roads were full of real nasty beaters, and people just couldn't wait any longer.  Cash for Clunkers flat KILLED all the used car dealers around here, so there aren't many options anymore.

Tue, 04/03/2012 - 10:46 | 2312905 ReallySparky
ReallySparky's picture

By my back of the hand calculations, they have more than 90 days of inventory stuffed at dealers.  It is obvious that they don't want to lay off any of those government workers prior to the election.  There will be a whole lot of incentives come summer to move that inventory,  dealers here in the midwest are stuffed with trucks.

Tue, 04/03/2012 - 11:12 | 2313042 Abitdodgie
Abitdodgie's picture

I went pased a dealer in a place called Carrington the populatoin is about 1700 ish and the GMC dealer had at a quick count 125 units , most of them were stored on a empty lot away from the dealer, and the truck had just turned up with another 7. 

Tue, 04/03/2012 - 10:46 | 2312907 Pairadimes
Pairadimes's picture

Soon, you will have the option of taking your gubmint welfare support in Chevys instead of dollars.

Tue, 04/03/2012 - 11:48 | 2313184 NotApplicable
NotApplicable's picture

They're gonna setup a lottery, just you watch.

 

Tue, 04/03/2012 - 14:16 | 2313838 gloogle
gloogle's picture

IT'S A BRAND NEW CAR!!!

#LetsMakeADeal

Tue, 04/03/2012 - 10:47 | 2312909 pepperspray
pepperspray's picture

Stuffing helps paving companies expand dealer lots. Jobs for every body and a new GM in every driveway

Tue, 04/03/2012 - 10:50 | 2312924 mayhem_korner
mayhem_korner's picture

 

 

Shovel ready, no less!

Tue, 04/03/2012 - 12:43 | 2313388 ParkAveFlasher
ParkAveFlasher's picture

And if your domicile is a phat black Escalade parked in the adjacent WalMart lot, bully for you.

Tue, 04/03/2012 - 10:48 | 2312914 tarsubil
tarsubil's picture

Bring out the GM trolls! GM is most amazing glorious project of American People's Republic!

Tue, 04/03/2012 - 14:17 | 2313848 gloogle
gloogle's picture

Es verdad!

#CheWasHere

Tue, 04/03/2012 - 10:51 | 2312929 mayhem_korner
mayhem_korner's picture

 

 

Opening paragraph from CNBC:

U.S. auto sales continued at a robust pace in March, boosted by consumers with more confidence in a recovering economy who want to buy fuel-efficient cars and trucks in the face of rising gasoline prices.

Now if you'll excuse me, I need to go vomit.

Tue, 04/03/2012 - 11:02 | 2312992 SheepDog-One
SheepDog-One's picture

Well, good thing basically no one watches CNBC anymore with their highest rated show having about 20,000 viewers. Im sure HFT bots have a direct plug-in to CNBC headlines though.

Tue, 04/03/2012 - 11:25 | 2313092 Common_Cents22
Common_Cents22's picture

I laugh at CNBS 8 person split screen discussions.   7 of 8 are CNBS talking heads, the other might be a market participant.   LOL.   They fucking interview each other now.

Tue, 04/03/2012 - 11:30 | 2313117 BudFox2012
BudFox2012's picture

I didn't know they had 20,000 viewers left total.  They must run some infomercials late night that are a big draw

Tue, 04/03/2012 - 12:30 | 2313335 iDealMeat
iDealMeat's picture

+1 for the Avatar Bud..   #winning

Tue, 04/03/2012 - 12:48 | 2313411 ParkAveFlasher
ParkAveFlasher's picture

+1 to you sir for pink slime.

Tue, 04/03/2012 - 14:19 | 2313857 gloogle
gloogle's picture

Pink Slime??!!  I thought it was a bloody stool...

Tue, 04/03/2012 - 23:15 | 2315359 iDealMeat
iDealMeat's picture

They're the same..  ;)

Tue, 04/03/2012 - 11:05 | 2313001 DeadFred
DeadFred's picture

Proof that those with degrees in creative writing can still find jobs in America.

Tue, 04/03/2012 - 11:21 | 2313072 Schmuck Raker
Schmuck Raker's picture

@mayhem_korner

Thanks for taking one for the team.

Tue, 04/03/2012 - 11:24 | 2313086 Village Smithy
Village Smithy's picture

No one who really puts pencil to paper buys a new "more fuel efficient vehicle" to save money. At the end of year one you've lost 5-10 thousand in depreciation, that buys alot of gasoline.

Tue, 04/03/2012 - 13:20 | 2313567 BeerBrewer09
BeerBrewer09's picture

It will probably work out for me. Based on the trade-in I got for my 4 year old civic, and the incentive I got on my new Prius, I will probably be the winner. I expect only higher gas prices moving forward, so the extra 20mpg I'm getting will repay me very quickly.

For the record, I only lost 4k in four years on my civic.

Tue, 04/03/2012 - 14:20 | 2313869 gloogle
gloogle's picture

Well, the key word here is "Civic".  That doesn't translate into anything made by the UAW...

Tue, 04/03/2012 - 14:26 | 2313888 DCFusor
DCFusor's picture

Looking even more like that for me and my Volt, actually.  Now, for those with calculators, I did spend an additional 10k on solar gear so as to be able to charge it "free", sometimes more than once a day.  And when the car is charged, I now have plenty of extra power to run the welders, lathes, computers, etc around my lab, and never need to run a gasoline backup generator for that anymore.

This is an investment.  All investments have some risk.  But this is low risk - those solar panels will go for another 30 years (longer than my life expectancy).  The ones I had already are at 85% output - and are 30 years old already, look like lasting forever.  I've not paid a power bill in over 30 years now, the original system (far more expensive back then) has paid for itself more than twice.

Now I'm there with gasoline - not from 20 mpg to 40, which is nice enough, but from any to needing NONE AT ALL, EVER.  For the rest of my life.  Sure, there's a time -value of money involved, but...what other investment could I have made that was as sure a thing, and locked in as much value almost no matter what goes down when TSHTF?

My buddy who bought a Prius a couple years back thinks it's going to be a net win monetarily even if gasoline doesn't go up further, but it will take a couple more years.  Turns out they don't eat their batteries as was feared, they last nicely.

Everyone should know that you don't buy a new car to save money.  You buy it to have a new car.  With the Volt, good luck finding a used one - no one wants to sell theirs.  The few 2011's that have sold have gone for near MSRP sticker!  People who own them get real attached to them it seems, they are indeed very nice, not the econo car that most electrics or hybrids are, but luxury all the way.

In a couple years, there will be plenty, as a lot of them were leased by people who couldn't otherwise max out the tax credit like I could - they'll be out there used then.

Early adopters never make the money, but are necessary - someone's gotta buy the new ones for the rest to get a good deal later.

Tue, 04/03/2012 - 15:09 | 2314114 prole
prole's picture

Lol did you get the solar gear from Solyndra? I heard they were doing almost as well as Trabant you pioneer you.

Full Disclosure- You are a pioneer at exploiting the system to your benefit. I salut you for that. And the "early adapters" that was pretty funny. Keep up the "good work."

Tue, 04/03/2012 - 16:13 | 2314444 Kayman
Kayman's picture

The only thing faster than the speed of gravity is depreciation on a GM vehicle.

And 30 year warranties are generally given out by companies that have been in business for 1 year or have lawyered up the warranty. Like roofing, you MAY be entitled to  1/30 of your original purchase price net of inflation; ie. zero.

Tue, 04/03/2012 - 10:51 | 2312932 Deep79
Deep79's picture

Folks this is how empires end, the lies, bullshit being spewd that everything is allright

Anyone with a half a brain knows everything is not alright, this is gonna end in diaster

It could be tommorrow, next week, next month, hell 2-3 years from now, but make no mistake, this will end very badly. That I have no doubt.

The market is broke beyond belief and the sad thing is that most people know it too, just look at volumes. Everday up is not normal. How long they can keep this up, your guess is as good as mine, but dont get fooled.

 

Tue, 04/03/2012 - 10:55 | 2312942 SheepDog-One
SheepDog-One's picture

Right when its 100% certain that disaster is coming, doesnt really matter what the timeline is, and no one knows anyway it could be a year from now or tomorrow, no one knows shit about timing a timeline. 

Tue, 04/03/2012 - 11:25 | 2313090 Village Smithy
Village Smithy's picture

The distortion brought on by ZIRP will be talked about for decades. 

Tue, 04/03/2012 - 11:52 | 2313187 NotApplicable
NotApplicable's picture

I think you mean silenced for decades.

All Hail the Memory Hole!

Besides, it's going to be scripted as Marx's prediction of the "inevitable collapse of capitalism."

Never mind the murder weapon d.b.a. "The Federal Reserve."

Tue, 04/03/2012 - 10:53 | 2312940 nobusiness
nobusiness's picture

The Government make shit people don't want and refusing to adjust.  Shocker!

 

I can confirm the dealers in NJ do need more Suburbans.  I just bought one and each dealer I went to had less than three on the lot. (for those people in the mid-west, in NJ we have at least 10 GM/GMAC/Cadilac dealers within 25 miles)

Tue, 04/03/2012 - 11:27 | 2313105 Common_Cents22
Common_Cents22's picture

yep, volts arent good bug out vehicles.   Suburbans can fit a family and plenty of gear to GTFO.  I'd get a diesel if available.

Tue, 04/03/2012 - 12:28 | 2313327 GeezerGeek
GeezerGeek's picture

Plus, you can live in one when your house is lost to foreclosure.

Tue, 04/03/2012 - 14:32 | 2313934 DCFusor
DCFusor's picture

You've already lost if you live where you need to bug out from, in my opinion.  But that's why the Volt has a gas tank too.  Mine holds plenty, but then I don't have a big family.  I have a truck too just in case, but the key here - I already live in the place most would love to bug out to - I'm there already.  Think about that one, hard if you don't want to find yourself part of the zombie apocalypse and be one of the targets we pre-buggers are shooting at to defend our homesteads from the hordes.

You might think you're smart living in a dense city so you can better (in your opinion, not mine) pick up pennies in front of the steamroller we all know is coming.  Screw that, my cost of living is under 1/4th of city life, for the same stuff - food's cheap in farm country as are land prices and used cars and so forth.  And it's not that hard to telecommute and make nearly as much money as in a city job, that is, if you actually deserve the money and aren't just scraping by hoping not to be laid off as an incompetent drag on your employer.

Take the plunge - it's the really important part of prep, not the gold.  And the kicker is - the life is far better NOW, no matter what happens down the road.  I "got to" quit kissing all ass in any form 35 years ago as a result of doing it myself.  That's gotta be worth something.

Tue, 04/03/2012 - 10:53 | 2312941 Seize Mars
Seize Mars's picture

This is an economics laboratory. Dealers have inventory coming out of their ears but somehow this never seems to translate into cost savings for the buyer. The "deals" available at the dealership are all financing incentives!

This is why the Austrian school rules. They are the only guys who understand the disasterous consequences of interest rates manipulation.

Tue, 04/03/2012 - 10:54 | 2312947 El Oregonian
El Oregonian's picture

I know, Uncle Sham can give away a GM car in lieu of a tax return. There, problem solved.

Tue, 04/03/2012 - 10:55 | 2312948 HD
HD's picture

Inventory Reduction Sale! All new Chevy Volts $19.95 or best offer. Add premium floor mats and AM/FM radio for $24,000.

Tue, 04/03/2012 - 12:21 | 2313297 UP Forester
UP Forester's picture

But wait, there's more!

Call within the next ten minutes, and we'll send you a second Volt, free!

Just pay the small $68,000 processing and handling fee, and we'll get the second Volt sent to you at no charge!

Operators are standing by at 1-800-BEND OVER....

Tue, 04/03/2012 - 13:29 | 2313601 Oh regional Indian
Oh regional Indian's picture

Hah. How about 68,000 $ in fees but a 2nd Volt "with" no charge?

ori

Tue, 04/03/2012 - 14:35 | 2313947 DCFusor
DCFusor's picture

I know a ton of people who would take that offer in a heartbeat.  Particularly in Canada, where they are having serious shortages of Volts (gas is 5.38/gal there).

http://gm-volt.com/forum/index.php

Click the "what's new" button to find a ton of fanboys so hardcore as to make Apple blush.

Or go with the ZH fabrications of reality if you prefer.  I like truth myself.

Tue, 04/03/2012 - 16:23 | 2314478 Kayman
Kayman's picture

I think you are confusing "shorting" of Volts with shortage of Volts. Hell, there has been such a shortage of Volts that GM shut the plant down.

And geez, Canadar is so far away. Like ya got ta paddle across the river from Detroit, even.

Maybe ya could buy up some of them Volts and smuggle them inta Canadar, and make some flippin' money.

Tue, 04/03/2012 - 10:56 | 2312957 fuu
fuu's picture

<waiting for Max Fischer>

Tue, 04/03/2012 - 11:05 | 2313005 Normalcy Bias
Normalcy Bias's picture

Indeed. We simpletons are waiting with bated breath for our resident "Citizen of the World" to enlighten us.

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