Government Motors...pretty much what you knew/said would happen

[SSG Snuggle Bunny]

The conservative prediction: shielding people from the consequences of bad decisions doesn't improve the underlying behavior, it only invites the repeating of that behavior.

The practical result:

The Detroit-based automaker, 33 percent owned by the U.S. after its 2009 bankruptcy, has 280,000 Silverado and GMC Sierra pickups on dealers’ lots around the country. If sales continue at June’s rate, that would be enough to last until November.

After GM’s truck inventory swelled to 122 days worth of average sales, the company said 100 to 110 will be normal going forward for such a large and complex line of vehicles, compared with 60 to 70 days for most models. Peter Nesvold, a Jefferies & Co. analyst, isn’t convinced.Ford Motor Co. (F), which makes similar trucks, is running at 79 days, and Nesvold says GM averaged 78 days on hand at year end from 2002 to 2010.

“It’s unbelievable that after this huge taxpayer bailout and the bankruptcy that we’re right back to where we were,” Nesvold, who has a “hold” rating on the stock, said in a telephone interview. “There’s no credibility.” In a research note he asked: “Is GM falling into old, bad habits?”

h/t: hotair.com

http://www.bloomberg.com/news/2011-07-05/gm-s-widening-truck-inventories-risk-return-to-bad-habits-of-2008-cars.html

I got a dollar that says the reason invetories were so high is because reducing the inventory would mean cutting production which in turn would mean layoffs. Not only would that cut union workers but it would stain the government intervention with no big, bad, evil capitalists to blame as Obama dictated who would lead the company.

Politics > pragmatism

[RightCoast]

Good bet Sarge

[dandi]

Damn, do you think it may have anything to do with the fact that people are buying Fords because they don't want to support Gubmint Motors? 

 

I have another bet for you, Sgt. Bunny-man:  I have a dollar that says 280,000 Silverados and Sierras are going to be dirt ass cheap real, real soon.  I have another dollar that says Gubmint Motors collapses completely just in time for the 2012 elections.

Any takers?

[jediab]

Damn, do you think it may have anything to do with the fact that people are buying Fords because they don't want to support Gubmint Motors? 

 

I have another bet for you, Sgt. Bunny-man:  I have a dollar that says 280,000 Silverados and Sierras are going to be dirt ass cheap real, real soon.  I have another dollar that says Gubmint Motors collapses completely just in time for the 2012 elections.

Any takers?

Sorry. In this Obama economy, I can't afford to loose a dollar.

[SSG Snuggle Bunny]

Damn, do you think it may have anything to do with the fact that people are buying Fords because they don't want to support Gubmint Motors? 

 

I have another bet for you, Sgt. Bunny-man:  I have a dollar that says 280,000 Silverados and Sierras are going to be dirt ass cheap real, real soon.  I have another dollar that says Gubmint Motors collapses completely just in time for the 2012 elections.

Any takers?

Even with people shying away from GM and going to Ford (I preferred Ford before the bail-out, FWIW) it still begs us to ask: why didn't they scale production to demand?

Or more appropriately: why was Obama so stupid as to allow politics and union cronyism to overrule business signals when he knew everyone would be watching GMs every move?

You can adulterously **** the lady from your church group all you want but only a fool tries to stick his hand up her dress in the communion line.

And a 2012 collapse would be the perfect karmic comeuppance seeing as the Idiot-in-Chief rode the wave of discontent from the 2008 crash to his present station in life.

Sorry. In this Obama economy, I can't afford to loose a dollar.

Dammit n00b!

Obama swore to give you change and by gumption that is what you shall be left with!!!   

 

[RightCoast]

Radio news headline on the way home was Honda hiring 1,000 more people to build the Civic in Tenn.

And Chevy hiring 2,200 more to build the Volt. If every person hired buys their own total sales since Dec 2010 would almost double. Meanwhile the Civic has sold approx 147,500 in the same time frame.

Government Motors doing what governments do - if it don't work hire more people.

[thundley4]

Radio news headline on the way home was Honda hiring 1,000 more people to build the Civic in Tenn.

And Chevy hiring 2,200 more to build the Volt. If every person hired buys their own total sales since Dec 2010 would almost double. Meanwhile the Civic has sold approx 147,500 in the same time frame.

Government Motors doing what governments do - if it don't work hire more people.

Their thinking is that if they show confidence in the product by hiring more workers to produce it, then more people will buy it.