There is a reason Zero Hedge has been on GM's derriere over the past year in disclosing the firm's not so covert channel stuffing mandate. Just released is the validation:
- GM MAY REDUCE PICKUP PRODUCTION, REUSS SAYS
- GM TRUCK INVENTORIES ROSE TO MORE THAN 275,000 AT END OF APRIL
Translation: more furloughs, less tax receipts by Tim Jeethner.
As a reminder from yesterday:
GM Channel Stuffing Hits Record In April
Earlier today, GM posted better than expected April car sales, with total US sales up 26.4% on expectations of 14%. How much of this is due to a Toyota impairment is unclear. What is clear is that channel stuffing at Government Motors, whose Chinese sales are far more important than US sales these days, just hit a new all time record of 577,000, higher than the previous record of 574,000 from March, and 149,000 higher compared to a year ago. The good thing is that GM will never be able to complain about lack of inventory: it now has two and a half months worth of sales equivalent parked on warehouse financed dealer storefronts, in the form of rapidly depreciating autos.