Sunday, December 4, 2011

Government Motors and the fools who bought the lie.

GM Non-Story: Dealer Inventory Build-up Continues

Not that it took keen insight to catch it, but yours truly was one of a very few people who pointed out that General/Government Motors unduly dressed up its financial statements in advance of its late-2010 initial public offering by foisting an unreasonable level of vehicle inventory on dealers. The effect of this was to enable the company, which in accordance with general industry practice recognizes sales when it ships vehicles to dealers, to book an estimated $900 billion in sent-ahead pre-tax profit largely not supported by dealer sales.

Contrary to the drawdown or at least level-off I expected after the IPO, GM, with of course virtually no establishment media coverage, has continued to push vehicles out to its dealers to what would appear to be potentially dangerous levels, as seen in the following graphic (HT to Zero Hedge for original):


Read more: http://newsbusters.org/blogs/tom-blumer/2011/12/04/gm-non-story-dealer-inventory-build-continues#ixzz1fak8l9rD


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