Friday, January 03, 2014

The Art of Channel Stuffing

How does GM increase the proverbial bottom-line?  Channel Stuffing!  Please explain.  Channel Stuffing is when a vehicle rolls off the assembly line and heads to your local GM dealership.  GM instantly records that car as a "sale," when, in fact, it simply ends up sitting in the dealer's lot.  (See the following chart.)  By the way, the December GM dealer inventory (channel stuffing) for the month of December was the largest in the company's restructured history.  But you say, those GM cars will be sold because of our solid economy.  In addition, all those people getting jobs will need cars to get them to work.  My only comment to such idiotic rhetoric is that economic stupidity still reins supreme in America.


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