Posted on 02/01/2011 3:26:45 PM PST by Frantzie
One more month, one more chance for GM to stuff its dealers with cars. Sure enough, in the just release January sales PR, the company announced that "General Motors dealers in the United States reported 178,896 total sales in January, a 23-percent increase from a year ago for the company’s four brands.
(Excerpt) Read more at zerohedge.com ...
Does GM get to count these “parked” cars as sales?
More from Tyler Durden:
“In January 2011, the firm had 510k cars at its dealers, compared to just 390,000 in January 2010, a 30% increase. Furthermore, as the only component of consumer credit that is surging, non-revolving loans, indicates that virtually all car purchases are made based on the old formula of “no money down.” And with the government backstopping both the car maker and the lender banks, we would be very interested in discovering just how bad the delinquency rate in non-revolving car debt is over the past year, especially as it relates to GM.”
No money down to deadbeats. Oh great. This worked so well before.
reminds me of China’s empty cities.............
Lucent and a few others tried to pull something like that years ago and people usually go to jail for it. Rules and laws do not apply to these people.
GM is going to take a big hit when the electric “Volt” fails big time as it is destined to do. $40.000.00 for a small four (4) passenger car that can’t run in cold weather is no way to go through driving life!!! Obama, his UAW goons & General Motors fail together!!! So....what else is new???
I remember Lucent. A certain top CEO from where I work went there and took over. Soon after that, the place self disintegrated. His name ceased to exist after that.
You will see flying pigs before you see me driving a GM or Chrysler product. President Urkel has done everything but make it illegal to own anything other than one of those pieces of sh!t. Next thing you know we’ll be bailing out the loans of all the indigents now driving around in Escalades.
Obama is such a dolt to think this is sustainable...or even meaningful.
I do see a lot of Camaros, though. That would be good news for American workers, if they were built in the US.
Micro chip manufactures were notorious for playing this game as the fixed costs of producing chips are high, the the incremental / variable costs of producing chips are low.
The game does not yield such large results in something with the large variable costs of auto manufacturing ... but they have to sell off the excess at some point and it is a drag on future production. The result is a lower future run rate and higher fixed costs per unit on that lower run rate.
Two things to note that suggest things are fine with inventory levels.
1. Inventories are down from recent peak in November.
2. Months of inventory are down from 3.7 months last year to 2.8 months given their repsective sales pace.
This was what Chrysler was the Auto Dealer of last resport aka the whole Community Redevelopment Crowd. It is not good if GM and Obama are pumping up the sales, this sounds like what the Chinese do, build an send washing machines to regions with no electricity...
“Next thing you know we’ll be bailing out the loans of all the indigents now driving around in Escalades.”
Rightly stated! I’ve told my wife the same thing when I see all these blacks driving around in brand new Escalades, Terrains, Acadias, Yukons, Sierra’s,etc. The income base isn’t that high here so I’m confident many of these will default on their contracts. It is reminiscent of the mortgage fiasco pushed by the dems. Ultimately the taxpayer is on the hook. No wonder 90% of this welfare class continues to give Master obama high approval ratings.
My guess is that they added floor plan incentives to the dealers to take these cars....as in no fees and no interest, extended terms.
And Why/How can they do this? Because they can.
We can only pray that the House with its assorted RINOs has the spine to stand up to President Urkel.
Sssssooo many cars snowed in,
unemployment solved (car de-snowers)
make mo money
buy car
stock market skyrockets
we all happyyyy
Remember when some dealers were forced out of business or consolidated into others. This might explain why they did it.
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