GOOD LUCK UNLOADING ALL THAT …
“Government Motors” posted weaker-than-expected sales for February … disappointing results which were promptly blamed on (what else) the weather.
But behind GM’s poor sales data is a much more troubling number: 805,769.
That’s the number of GM vehicles currently sitting on dealer lots … up from 780,140 in January. In fact February marked the fifth consecutive month that GM has had more than 700,000 cars sitting on dealer lots.
According to Ward’s AutoInfoBank, all that “cold product” means GM currently has a 114-day supply of vehicles on its lots – which is nearly twice the recommended 60-day supply (and well above the industry-wide 89-day average for last month).
That’s not good …
Wanna see what all those surplus vehicles look like in chart form?
“Good luck liquidating all that pent up inventory without major incentives and margin crushing price reductions for everyone in the distribution chain,” the website Zero Hedge notes.
The most worrisome component of all this? If (when) GM takes another nosedive, its status as a “too big to fail” American icon means taxpayers will once again be on the hook for a bailout.