Monday, March 03, 2014

GM Channel Stuffing

How do you increase profits? If you are GM, you simply "channel stuff," which means that you book a car sale when it leaves the factory on its way to a dealer.  Now, that car becomes the dealer's problem by increasing its inventory of unsold cars.   As of the middle of February, 805,769 cars were in dealers' inventory, which is the largest ever.  Good luck in selling all those cars.  (See the following bar-graph.)

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