General Motors Inventory Stuffing At All Time High

This is a chart of dealer inventory for GM:

So what we are looking at here is a continual build up of cars on dealer lots with no willing buyers for them.

The reason this is occurring is because GM is basically a quasi-governmental institution that is pumping out product simply to drive up the numbers economists use when calculating the health of an economy.

As far as the State economists are concerned, the only thing that matters is that GM produced a car.  They don’t care about what happens to the car after it has been manufactured.

In order for this market to clear, one of two things must happen.  Either the prices of cars must fall dramatically or those cars must be shipped overseas.  But clearly overseas markets are just as depressed as our economy.  That means ONLY a reduction in price can clear the inventory.  This would destroy GM’s books once again.  So, GM isn’t going to cut the price.  They are going to simply let the cars rot on the show room floor.

Yet another grand waste of resources brought to you by Government Motors and our psychopathic central planners at the Fed.

  • Zach

    Well, as a GM Dealership Employee, I’m not sure where these cars are going. We have tons of buyers but cant get the cars people want. tons of base, tons of fully loadeds.. but nothing in between. Camaros are hard to find. Same with the cruzes. (At least for my lot.) We could sell 30 a month if we had the inventory  right now we are selling about between 4 and 15 a month– Most of that is Commercial (Fleet) Sales.

  • http://www.facebook.com/people/Bob-Boren/1382613529 Bob Boren

    Its sad to see what has happened to this once great company.