GM Channel Stuffing Surges To All Time Record Submitted by Tyler Durden on 12/01/2011 17:15 -0500 Gross Domestic Product 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. Source:
And GM were the ones that needed all the government bailouts to keep afloat in 08'......Ford did''nt need anything???
A few years ago GM was making more mobey from their financing arm than actually selling cars. I thought it was interesting to read last week that Sony is basically being kept profitable (mostly) by it's finance and insurance arm.
in paper figure, you go and figure in gold, there is not enough gold? in wonderland, where all the money goes to? in free money society gold paper may be used as plate. there never will be enough of money :0 gee i wonder what people with that kind of money do to their money.
