GM numbers

[Yooper]

Submitted by Tyler Durden on 04/01/2011 11:24 -0400

Ford General Motors Japan Unemployment Unemployment Office

Earlier today GM announced disappointing sales numbers, with March car sales rising only 9.6% compared to expectations of 20%. Indeed, this number tends to be quite volatile: ultimately it is a function of how easy it is to get loans for purchases and, more specifically, the impact various incentives offered by its captive financing units. Why it was very disappointing is that as we reported a month ago, GM is once again back to its old gimmick of offering no interest loans, and rising discounts to the highest amount among US carmakers: "General Motors Co. is offering buyers interest-free financing on some 2011 models after the company increased discounts and incentives to lead all major automakers’ U.S. sales gains last month." As of yesterday desperate car buyers who can't rub two dimes together, can drive to the local unemployment office in the luxury of their brand new Chevy Imapala, or alternatively pick a just as worthless Chevy Malibu, HHR WAgon, Traverse SUV, as well as a Silverado, Colorado and Avalanche pickups, which are now offered at either 72 or 60 months of interest-free loans. "The 60-month deal also applies to the Buick Enclave and GMC Acadia SUVs and Sierra pickups." That pretty much covers the entire line up. And that's not all: "GM raised discounts 12 percent from a year earlier to an estimated $3,732 per vehicle last month, the most among major automakers and 45 percent more than the average, according to researcher Autodata Corp."

But what is most disturbing is that as the chart demonstrates, GM has now taken its indirect channel stuffing art to the level of a science, with what we believe is a record 574,000 cars held in dealer inventory. No surprise then that GM's Johnson sees no effect from Japan production on car production: after all the company will needs years just to clear existing inventory, and guess what that means for prices and for the viable competition, primarily in the face of Ford...



Chart says it all.

Source: GM

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[Yooper]

http://www.zerohedge.com/article/cha...ops+to+zero%29

[Mr. Houdini]

O% financing or not, I don't want any GM vehicle.

[Detroitnerd]

What? They're making funny loans to sell cars and bundling those high-risk loans to sell them as CDOs? That sounds like it'll work. Remember how well it worked last time. Oh, wait ...

[Yooper]

Remember when GMAC changed their banking status in order to receive TARP funds?

I'd take a free tarp loan over any innovative production breakthrough within the last 30 years any day.

[CountrySquire]

Message to all carmakers, not just GM. Make some interesting products that fill in the $20 to $30K price market. There are too many ho hum four door cars with 3.0 litre V6s to choose from. Make a snazzy two door hardtop, or a woodie wagon, an El Camino anything but another four door V6 rehash of the Camry. Oh and chrome is not evil. Getting sick of the european style monochromatic cars with gray or tan interiors too.

[ndavies]

Message to all carmakers, not just GM. Make some interesting products that fill in the $20 to $30K price market. There are too many ho hum four door cars with 3.0 litre V6s to choose from. Make a snazzy two door hardtop, or a woodie wagon, an El Camino anything but another four door V6 rehash of the Camry. Oh and chrome is not evil. Getting sick of the european style monochromatic cars with gray or tan interiors too.

Sorry, Toyota has proven consumers only want beige appliances, not fun and exciting cars.

[Buy American]

Could it be that Americans are finally waking up and seeing what side their bread is buttered on?

WHAT YOU DRIVE, DRIVES AMERICA.
OUT OF A JOB YET? KEEP BUYING FOREIGN!

[Bham1982]

Why can't the U.S. car companies make a competitive equivalent to the Nissan Sentra, Honda Civic/Fit, etc.?

GM doesn't even seem to try, and I really can't get too excited at Ford's small-car offerings. I find them quite ugly [[esp. Focus & Fusion).

I have a 70-mile one-way commute, and would really appreciate an affordable, stylish, gas-sipping U.S. option.

[coracle]

Eventually they will give GM cars away to people that can't afford them to prove Obama was right.

[lilpup]

Chart says GM is anticipating sales picking up after the traditional slow sales months. Cruz is doing well, Volt is doing ok. JD Power 2011 Dependability Survey has all GM marques except Chevy at above industry average quality. [[Lincoln topped the survey). Toyota's going to be out of the picture for a few months.

[Hermod]

Chart says GM is anticipating sales picking up after the traditional slow sales months. Cruz is doing well, Volt is doing ok. JD Power 2011 Dependability Survey has all GM marques except Chevy at above industry average quality. [[Lincoln topped the survey). Toyota's going to be out of the picture for a few months.

Toyota is also getting ready to increase prices because of dollar-yen fluctuations.