Auto sales up 8%

Discussion in 'Economy' started by Chris, Dec 22, 2011.

  1. Chris
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    Chris Gold Member

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    Car shoppers are giving automakers a Christmas present -- brisk December sales that will finish 2011 on a high note, top forecasters said today.

    New-vehicle retail sales in December are projected to come in at 1,033,700 — the first time retail sales will top 1 million since the Cash for Clunkers federal rebates drove strong sales in August 2009, according to J.D. Power and Associates and LMC Automotive.

    Retail sales in December are on track to increase 8% compared with the same month last year even though incentive spending is about 10% lower than last December, John Humphrey, Power's senior VP of global automotive operations said.

    Total industry sales — including retail (the most profitable) and fleet — are expected to top an annualized pace of 13.4 million in December. That pace is nearly million higher than last December's pace of 12.5 million.

    Auto industry closing 2011 with strong December sales
     
  2. Mr. H.
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    Mr. H. Diamond Member

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    Not auto sales, big red bow sales.
    They just happen to come with a Lexus attached.
     
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  3. Trajan
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    Trajan conscientia mille testes

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    *sigh*


    GM Channel Stuffing Surges To All Time Record

    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.

    more at-

    GM Channel Stuffing Surges To All Time Record | ZeroHedge

    keep trying chris...:eusa_silenced:
     
  4. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    "Channel Stuffing", hadn't heard that one before. :D

    Zerohedge is a great site btw. Maxkeiser.com is good too.
     
  5. Chris
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    Chris Gold Member

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    :lol:
    :lol::lol::lol::lol:

    November GM sales???

    The OP is about December sales of all the auto companies.

    Fail.
     
  6. Mr. H.
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    Mr. H. Diamond Member

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    This is interesting from the comments thread -

    I respectfully disagree with your assertion that most of GM's sales come from subprime loans. If you offer some proof of that, I'll gladly admit my error.

    Furthermore, your claim that NINJA loans are back at GM is not accurate, either. GM's subprime arm is AmeriCredit, and they require proof of income on absolutely - no exception - all loans.

    Additionally, GM dealerships are able to choose from a wide variety of subprime lenders, all of whom have their own individual underwriting standards. These lenders serve the ENTIRE car business, not just GM. Dealers simply choose which lender pays out the most "reserve" (interest) kickback and largest advance (front end gross profit).
     
  7. expat_panama
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    expat_panama Silver Member

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    OK, better than last year--
    [​IMG]
    --which is not saying much...
     
  8. Mr. H.
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    Mr. H. Diamond Member

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    Is that also referred to as "Chuffing" for short? :eusa_whistle:
     

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