Channel Stuffing: In Pics

PEOPLE CAN’T AFFORD NEW CARS … What is “channel stuffing?” Glad you asked … it’s a business term, and it refers to the practice of deliberately pumping excess inventory into a distribution chain in an attempt to artificially inflate sales. We’ve written about it in the past as it relates to…


What is “channel stuffing?” Glad you asked … it’s a business term, and it refers to the practice of deliberately pumping excess inventory into a distribution chain in an attempt to artificially inflate sales.

We’ve written about it in the past as it relates to the automotive industry – which continues to engage in the practice. In fact earlier this month General Motors – which received billions of dollars in bailout money from U.S. taxpayers – reported record inventory of 825,805 at its dealerships.

Of course “channel stuffing” isn’t confined to cars sitting unsold on dealer lots. Automotive manufacturers are “parking” excess inventory wherever they can find the space.

“All around the world there are huge stockpiles of unsold cars and they are being added to every day,” the website Zero Hedge notes. “They have run out of space to park all of these brand new unsold cars and are having to buy acres and acres of land to store them.”

Take a look …

(Click to enlarge)

(Pics via Zero Hedge)

What’s driving this epidemic?

Easy: Customers’ inability to afford new cars. Last year automotive market research firm Polk reported that the average age of cars and light trucks on American roads had reached a record high of 11.4 years – up from 11.2 years in 2012. Polk predicted the trend would continue through 2018.

To some extent this increase can be attributed to better manufactured vehicles, but the real “driver” behind America’s aging vehicle fleet is deflated consumerism …

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junior justice May 19, 2014 at 10:04 am

I’ll take one off their lot – any model – any color – if it’s free (including shipping and sales tax) – &&&&&&

Smirks May 19, 2014 at 12:27 pm

Depends on the car. Some new cars are no better than the clunkers at some random used car lot.

Give me Mugabe money May 19, 2014 at 10:08 am

If the government gives me bailout money too then I’ll go ahead and buy a Government Motors car. I’ll vote for whoever supports me financially.

It’ll go with my government cell phone, government cheese/EBT card, & government health care.

When I pray at night, I’ll pray to the government for being such a good provider.

Jackie Chiles May 19, 2014 at 10:22 am

People can’t afford stuff. Republican and Democratic plans to solve it: MOAR EDUCATION AND MOAR STUDENT LOAN DEBT.

Halfvast Conspirator May 19, 2014 at 10:29 am

MOAR is always BATTER!

ELCID May 19, 2014 at 10:41 am

This entire scam started decades ago when Auto Manufacturers bribed Congress to change the Tax Laws to benefit Auto Companies. Before you had to sell a car in order to list a profit on your tax returns (this is still the practice in Europe). So, dealers had small dealerships, even window shops. They only had a few cars on hand to show or test drive. Customers ordered their cars specially made for them, or took incoming cars the dealer ordered to replace show room cars that were sold.

The Auto manufacturers lobbied (another word for bribery) Congress to change the rules, so that they could book the profits when the cars were manufactured and sent to dealers or storage lots: instead of customer sales. Therefore, the more cars you made the more profits you made; regardless of how many cars you sold.

To further this scam, the auto manufacturers offered “Show Room,” financing deals that let the dealers only pay for the interest on the money for all the cars they were being shipped to hold, vs. the before: interest and principle. Auto Manufacturers became banks, which all failed in 2007-2008.

This is what happens when you allow Lobbyist to buy America’s Common Sense.
It will happen again!

Bellr May 19, 2014 at 10:48 am

Except, these photos are 5 years old and this isn’t happening.


vicupstate May 19, 2014 at 12:14 pm

Pay no attention to the man behind the curtain!!

Dr. Doom May 19, 2014 at 12:29 pm

I guess the “unfair, imbalanced” moniker means that Will doesn’t need to fact check at all…

Norma Scok May 19, 2014 at 1:16 pm

They haven’t made that model Durango since 2009

Mike at the Beach May 20, 2014 at 9:23 am

It was on Zerohedge.com on Saturday, so it cannot be false! Wait a minute, a lot of the gloom and doom on ZH turns out to be false…

nitrat May 19, 2014 at 11:32 am

I have one car that’s 14 and another that’s 22. I am happy to have cars that use keys and don’t talk to me or beep any more than is absolutely possible.
I wish they didn’t have computers. Those are the only parts that cause problems.

Norma Scok May 19, 2014 at 1:14 pm

Apparently you have forgotten the joys of carburetors and ignition points.

Guest Who May 19, 2014 at 1:26 pm

Mine are both Diesel – one 28 years old (86 Isuzu with 320,000) and one 18 years old (96 Merz, but it has a computer, dammit, with 145,000). Not a whole lot of upkeep except for fuel lines on the Merz (new diesel fuel seems to make them rot quicker than the old – no trouble with the Isuzu except for finding one part that has a banjo fitting on one end). No carbs, plugs, or ignition points. Both have original glo-plugs.

Norma Scok May 19, 2014 at 1:44 pm

What’s a Merz?

The Colonel May 19, 2014 at 2:53 pm

Geek speak for Mercedes

Semi Car Geek May 19, 2014 at 7:31 pm

I always called them “Mercs”.

The Colonel May 19, 2014 at 7:50 pm

Nope, among gear heads a “Merc” well always be a Mercury http://m.youtube.com/watch?v=3T3MgIRUwj0

Semi Car Geek May 19, 2014 at 8:41 pm

Fair enough, I’m a little too young.

Norma Scok May 19, 2014 at 11:04 pm

Doesn’t really matter what it is. I’m not driving an 18 year old car nor especially a 28 year old car every day.

Smirks May 20, 2014 at 8:26 am

Nothing wrong with an old car, as long as it is well-made. Sorry though, I’m spoiled by keyless entry (and thankfully my car doesn’t beep or honk at me even if I press “lock” a million times).

vicupstate May 19, 2014 at 12:15 pm

If supply is up and demand is down, then prices would be falling.

tomstickler May 19, 2014 at 2:04 pm

What will Will do about passing on this Zero Hedge bullshit?

Since Republicans never apologize for their bullshit, this may be a clue.

Sterling May 19, 2014 at 3:12 pm

I have a tenant who has a government housing voucher for $850 which I am glad to receive. It bothers me a slight bit when I go over to fix a problem driving my 2000 F150 and have to park next to her 2013 Chrysler 300.

L I'll Be May 19, 2014 at 6:06 pm

FITS #punked………..does anybody here read the comments before commenting…..1st comment by Bellr shows this is an urban legend!

cuvinny May 19, 2014 at 6:46 pm

Wil getting smacked down


“Now normally I would ignore the dreck that flows from the mouths of
conspiracy lunatics, but I’ve noticed that a number of politically
oriented sites have linked to the Zero Hedge post without realizing that
it’s based on very little factual information. What little factual
information there is in fact “based” on old photographs.”

GrandTango May 19, 2014 at 6:59 pm

Any chance we can bring back Cash for Clunkers?……That was a ‘Brilliant’ creation…of Obama..one of his best…l’m sure…LMAO….

Smirks May 20, 2014 at 8:03 am

Maybe you can trade in the old clunker you call a brain for one that actually works!

GrandTango May 20, 2014 at 8:33 am

Smirks: It’s Obvious, Obama is getting his @$$ kicked by the reality of his failure…if that is all you can come up with…

This VA scandal is absolutely sickening…Even Steve Benjamin is turning on yall…We’re getting to Nixon-level actions of the president…

If Obama had an R by his name, he’d be in jail.

There is no level of incompetence, stupidity, arrogance or corruption will turn most democrats. You are a FILTHY breed of Nasty low-life Feces. And I don’t meant that personally, it’s just the truth…

What you’ll accept, to keep your power, greed and race hate, is unbelievable. Absolutely astonishing…

Budget Forum May 19, 2014 at 8:18 pm

Blah blah blah blah blah blah blah


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