President Obama’s campaign claim that he rejuvenated the ailing
General Motors depends on practices called “overbuilding” and “channel
stuffing,” critics say. Car dealerships’ lots are filling up with unsold
trucks and SUVs because GM built more vehicles than it can sell in
order to inflate sales claims and artificially boost its profits, The
Daily Caller has learned.
The Detroit automotive giant records sales for vehicles in dealers’ inventories before car buyers make their purchases, said Mark Modica, a National Legal and Policy Center associate fellow.
GM’s overbuilding “probably helped [GM] in the second quarter, but will hurt in the third quarter,” a Standard and Poor’s Capital IQ analyst added.
Third quarter results won’t be made public until after the November election, allowing Obama to tout the company’s short-term success while masking troubles that are not yet apparent to voters.
GM spokesman Jim Cain said the company is “overbuilding” because it plans to shutter four assembly plants for a combined 29 non-consecutive weeks in order to ready them for production of its newest models.
Cain said the scope of the closure “doesn’t matter” and “the overbuilding is necessary.”
Meanwhile, dealers are swamped with autos that they can’t sell. GM began taking plants offline in the second quarter but will close production even longer in the third quarter.
The Detroit automotive giant records sales for vehicles in dealers’ inventories before car buyers make their purchases, said Mark Modica, a National Legal and Policy Center associate fellow.
GM’s overbuilding “probably helped [GM] in the second quarter, but will hurt in the third quarter,” a Standard and Poor’s Capital IQ analyst added.
Third quarter results won’t be made public until after the November election, allowing Obama to tout the company’s short-term success while masking troubles that are not yet apparent to voters.
GM spokesman Jim Cain said the company is “overbuilding” because it plans to shutter four assembly plants for a combined 29 non-consecutive weeks in order to ready them for production of its newest models.
Cain said the scope of the closure “doesn’t matter” and “the overbuilding is necessary.”
Meanwhile, dealers are swamped with autos that they can’t sell. GM began taking plants offline in the second quarter but will close production even longer in the third quarter.
No comments:
Post a Comment