GM – Now Whatcha Hiding?

GM’s November sales figures were released yesterday, and while they didn’t meet expectations, the real news was what the good folks at Zero Hedge gleaned from the report:

…earlier today, GM reported slightly disappointing sales numbers: the newly IPOed company sold 168,739 cars in November, a 11.4% increase to November 2009, which came in below expectations of a 13% rise. That’s mostly noise. What isn’t, however, is the linear rise in GM’s auto inventory safely stashed away at dealers, i.e., unsold. The chart below demonstrates what some may argue is nothing less than a blatant case of channel stuffing. Is it really surprising that GM will resort to such pathetic schemes to boost its top line numbers? Of course not: the government’s GDP report demonstrates that this is occurring everywhere in the US economy, courtesy of near record inventory accumulation which two years after the start of the depression refuses to let up, providing a hollow boost to economic numbers as the much anticipated pick up in end demand…

It is obvious that beginning in July, GM has started an aggressive channel stuffing program whereby it offload tens of thousands of cars (over 110,000 since July) on dealer lots, hoping these will get sold somehow, at some price, all the while dealers enjoy taxpayer subsidized floorplan leases which allows them to hold nearly infinite inventory. If and when the liquidation event takes place who cares? After all the company is now public and has managed to massage it artificial sales numbers sufficiently to fool investors that there is actual end demand for its cars.

Why would GM do such a thing? It is not as if GM had its IPO a few week’s ago and did anything and everything to drive up its price, including manipulating its sales numbers, right? It’s not as if the $33 stock just made the UAW automatic billionaires, and considering Obama just basically gave GM to the same effers that broke the company, that would be the sweetheart deal of the century, right?

China is accused of building cities that no one will ever live in just for the sake of pumping up its GDP. What GM is doing is exactly the same. And when their stock crashes, as it will because the company is a shell and a fraud, the UAW will have already cashed out and the American taxpayers will be on the hook to pay for the disaster that everyone knew could have been avoided in the first place. Luckily, no one really cares in america, or someone would do something, or so one would think.

7 Responses to “GM – Now Whatcha Hiding?”

  1. finn Says:

    “…the same effers that broke the company…”

    You really believe that the UAW “broke” GM? Really?? The union somehow forced GM to sign those contracts? At any time they chose, GM could have told the unions to go fuck themselves, endured the subsequent strikes and just moved on. This would have been very easy to do back when they had over fifty percent of the auto market; to NOT do so was entirely their decision.
    Fast forward a few decades and we find that GM has put billions of dollars, for a great many years, into China, while using the financial meltdown — government-inflicted, mind — as a chance to finagle billions of tax dollars to use to…wait for it…cut the nuts off the unions. North America is the only place with an auto industry that tied bailout loans to union cutbacks.
    And the Chinese angle…well, why wouldn’t the American automakers want to build their vehicles in China and then ship them here? The Japs got very rich doing that build-it-there-sell-it-here dance, with a great deal of government assistance on both sides of the water. Just add automobiles to the list of things not made in the US or Canada anymore (don’t worry, it’s coming) because the Japs (and others) were given virtually unrestricted access to the North American market while putting up ridiculously high barriers to their own markets.
    Not to worry, though, you can blame it all on the guys that you’ll be supporting soon enough…just pretend that they’re farmers or East Coast fishermen if it makes it easier to swallow.

  2. The Mayor Says:

    I buy alot of what you’re saying. There were many hands involved in destroying GM, granted, and yes, I did overstate when I said the uaw destroyed GM…I know they were not alone. But handing over the keys to the union as obama did, that is pure lunacy.

    I also agree with knocking down the japanese and chinese protectionists – it’s upsetting that gm is doing so well in china, when the cars are made there, with there materials, while no inflow comes from North America.

    Actual change is needed in gm, not the nonsense they are selling to us right now.

  3. Fenris Badwulf Says:

    The auto industry only exists to provide military production in times of war, and in the preparation for war.

    All this is just a shabby collection of ass sex friendly committees, fueled by money, power, and pony girl sex. There is no Cromwell in this history, because there is no efficiency. These are layers of incompetents, knuckle walkers, and stretched rectum disability activists. How they play poorly at Chess is not as important as what sort of auto industry we have, on the ground, right now, for the purpose of military production for preparation for war.

    If people knew the future, they would be digging anti-tank trenches around their towns. Hoarding food. Gathering gas warfare equipment.

  4. cudgel Says:

    Am I the only one here that had to google “pony girl sex”?

  5. earl west Says:

    But coitus a cheval tops a pony girl any day.

  6. J.M. Heinrichs Says:

    … with Pictures!


  7. cudgel Says:

    Tanks J.M., I’m picking it up now.

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