GM Channel Stuffing Resumes in Honor of Ricter

Discussion in 'Politics' started by Tsing Tao, Feb 1, 2012.

  1. Tsing Tao

    Tsing Tao

    From ZH:


    And some other manufacturers:

    Ford month-end inventory 86-day supply at end of Jan. (492k vehicles) vs 60-day supply (466k) as of Dec. 31
    Chrysler had 83-day supply (349k units) end of Jan. vs 64-day (326k units) as of Dec. 31
    GM month-end inventory 89-day supply (619k units) vs 67-day supply (583k) Dec. 31
  2. Ricter


  3. Tsing Tao

    Tsing Tao

    Apparently, you do not understand how dealers relate with manufacturers and the choices they have in taking on inventory.

    Also, I am sorry (for you) of the national car sales vs. yago aren't following the autonation lead.

    Lastly, your article talks about deliveries. That's not a sale.
  4. Ricter


    I think we've both noted that it's a bit of work to separate the wholesale data from the retail data, but the 2011 Q4 report was clearly retail data. No, I don't know for certain that this report from Wards is retail or wholesale, but, to be honest, I think zerohedge is trying too hard--people are in fact buying cars.
  5. Tsing Tao

    Tsing Tao

    To say "people are buying cars" is not in dispute. People are buying milk too. And computer games. And prostitutes.

    We're talking whether or not retail matches with deliveries, and there is no way. GM and other companies are using deliveries to have better than expected results. Eventually it will catch up.
  6. Ricter


    Retail sales are rebounding sharply, and are expected to continue growing in 2012. 2011 unit sales up yoy (flat to +1% reported in Q3 following the Japan tsunami) and 11% for Q4 alone. 10% predicted for 2012.
  7. jem


    that chart looks pretty bad.
    whats the game plan.

    stuff the channel to make the dealers happy.

    then threaten to close the factories and demand another bailout or union concessions... putting obama's vote at risk if he does not protect the unions and bail out the company?

    Perhaps the company will get Obama to put all the union guys on obamacare.

    This is what happens when you let govt pick winners.
  8. Ricter


    Why? If dealer lots are stuffed, what negative effect will it have on sales to consumers? Maybe prices will come down, but that's ok, they were at record highs last year, and consumers still bought cars.
  9. jem


    eventually the channel will be stuffed with no place to put the cars. Then the assembly line will shut down if something is not done to change the companies cost structure.

    then Obama gets put to the test right in front of the elections. Right about now I think the adminstration is finding out it has been played by gm execs.
  10. Ricter


    Well, if retail sales fulfill the 10% growth prediction for 2012, coming off a strong 2011, I think we're gonna be all right, the assembly lines will continue to run. As for GM, they won't have to explain why wholesale sales are down, it's been figured out.
    #10     Feb 1, 2012