Manipulated Auto Recovery Figures Just To Give White House Positive Talking Points In Auto Industry….

You might have noticed Obama and his team spouting all the positive angles they can muster about “saving” the auto industry and how wonderful the recovery is going.   When in reality it is just manipulated inventory and “channel stuffing”, especially with GM.

(via ZeroHedge)  Just as we thought GM’s channel stuffing days may be coming to an end, and the company may finally be normalizing its inventory management, here come January numbers, where we learn that in addition to car sales declining by 6% compared to a year ago, at 167,962 vehicles sold (of note: “Retail deliveries declined 15 percent compared with the same month a year ago and accounted for 70 percent of GM sales”).

It was the all critical month end dealer inventory that caught our attention. And unfortunately as the skeptics expected, GM is back to its old tricks, as dealer inventories rose once again, this time by over 36k units, or the second highest in its post-reorg history, to a near record 619,455 vehicles stored with dealers.

This is just the second highest ever in fresh start GM history, second only to November’s 623,666. The January-end number represents 89 days supply, but more importantly the recent spike in restocking, which was seen with all other major car dealers, explains the ongoing “expansion” in the US economy as measured by indices such as the ISM.

Eventually, when the end demand for these dealer parked vehicles does not materialize, the New Orders so diligently tracked by economists everywhere will slip back under 50, but before that we are confident that the administration will come up with some new Cash for Clunkers plan to take demand from the future and to push it into the days leading into the election, probably funded once again by other taxpayers who don’t quite see the fascination with owning a GM car.  (more)

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2 Responses to Manipulated Auto Recovery Figures Just To Give White House Positive Talking Points In Auto Industry….

  1. Gino says:

    Mr. Obama during the State Of The Union Address in touting the benefits of the stimulus for car manufacturers projected the notion that Ford too had taken stimulus monies..Alternatively, it should have been said that Ford did not take stimulus monies and that there current fiscal and engineering advancements in the industry are represenative of the free enterprise system at work.Thus, we can now say that the manipulation of unemployment figures surely is akin to car manufacturers misrepresentatuions both brought to us by the MFG – Manipulative Federal Goverment.

    • Indeed you are correct. The unemployment number manipulation is staggeringly obvious. Despite the fact that our population actually grows by over $100k eligible workers each month the top line number for workers according to the Bureau of Labor Statistics has never moved since January 2009. Prior to that date the top line number of eligible workers increased by 100k to 150k workers monthly.

      Something happened in January 2009 that caused the BLS to freeze the eligible workforce number and keep it frozen to this day.

      At this rate the “catchup” to correct the statistical manipulation will add over 4 million people to the top line. So the next president will have to ‘create’ 4 million+ jobs just to retain statistical comparability once the BLS unfreezes the eligible workforce number.

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