In the past several years, one of the topics covered in detail on these pages has been the surge in such gimmicks designed to disguise lack of demand and end customer sales, used extensively by US automotive manufacturers, better known as "channel stuffing", of which General Motors is particularly guilty and whose inventory at dealer lots just hit a new record high.

Comments

  1. ottilie
    1

    ottilie 1188 days ago Permalink

    Other person's view http://jalopnik.com/that-zero-hedge-article-on-unsold-cars-is-bullshit-1578124255

  2. alvinroast
    0

    alvinroast 1188 days ago Permalink

    Also http://www.bloombergview.com/articles/2014-05-19/the-truth-about-auto-sales

    Sorry about the post. The story was compelling since car sales are off (and should be).

    Thanks for pointing out how off the article was.

  3. ottilie
    0

    ottilie 1187 days ago Permalink

    no... I think some aspects of it are true. I just sold a used Nissan Sentra car that I bought at blue book for $3000 in 2005, and the blue book value is still about $3000. The reason why is that cash for Clunkers program took many old cars off the market, and people are buying used rather than new cars because fewer people have cash after the recession, even if they need a working car. They even found that in the area of food, even though there are droughts in California and some other areas, people are switching to cheaper food rather than letting prices go up. http://www.reuters.com/article/2014/05/14/us-usa-prices-food-analysis-idUSBREA4D03X20140514

  4. alvinroast
    0

    alvinroast 1187 days ago Permalink

    http://blogs.wsj.com/corporate-intelligence/2013/12/26/cars-on-american-roads-are-older-than-ever/

    This article suggests that cars are older than ever and used car prices at record highs.

    @ottilie Thanks for that article. It helps to explain why prices aren't going up as fast as expected. I don't regularly buy any processed food except yogurt, and that's only because it's much cheaper than making myself. Farmers really seem to have trouble pricing their food right now. We visited a farm last week that was taking deposits on pork for late June even though they hadn't decided on this year's prices.

  5. alvinroast
    0

    alvinroast 1185 days ago Permalink

    If you don't drive, you don't wear out your vehicle.

    http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=a103600001&f=m

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