Tuesday, October 02, 2012

Channel Stuffing Continues at Government Motors (GM)

GM month-end dealer inventory for September 2012 came in at 689,334 vehicles, which is up from September 2011 figure of 558,157.  Expect this number to increase as head into the winter months.

GM has to inflate those sales somehow, and it might as well be at the expense of its dealers.  For those of you that have forgotten what is "channel stuffing," it simply means that GM records a "sale of a vehicle" when it leaves the factory but not yet sold.  In other words, GM dealers take these unsold vehicles into inventory at a cost to their bottom line.


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