When all the big manufacturers start stockpiling, it truly illustrates how the market just absolutely collapsed.

Bunter

One thing to keep in mind, besides M-B and Toyota also parking fleets at the ports, is that one way to get around the new CAFE standards is to build like crazy before the standards go into effect. Granted, that is four years from now, but some suits at GM did cast it as a feasible option.

Maybe so, but wasn’t the essence of the Enron fraud that it was booking revenue from deals with supposedly outside entities that turned out to be Enron under another name?

So I’m still wondering how there can be revenue when they have “sales bank” cars. Even finished inventory must be written down and losses recognized if the reality is that it can’t be sold at original book value. Which, I suspect, the auditors would insist upon.

I can confirm GM is filling up parking lots with excess inventory, at least in Flint, MI.

There is a recently closed auto dealership off of I-69 on Dort Hwy., which used to be Superior Pontiac. I just drove by there last week and the entire parking lot in the back was filled with new trucks. It is a fairly large parking lot, and if I had to guess, there are probably 200 – 300 trucks parked there.

Here – take 2 more Tahoes – but I don’t have the cash right now – so will you take… another Tahoe?

@50merc: When a car leaves the factory, a dealer’s or person’s name is attached to it, and considered sold (invoiced). If there’s not a name attached, it lands in a “bank” which any ethical accountant would log as inventory. However I think the Chrysler M.O. has been to somehow still cast these as sales to some – i dunno – holding company? Of course they then try to cram these down the dealer’s throats because the last thing OEMs want is lot queens on their lots.

Can some Motor City accountant explain to me how revenue can be booked without a corresponding entry to cash or accounts receivable? Isn’t there supposed to be a debit for every credit?

Interesting how it’s now become a leaky bag of smelly dung, just a precursor to the same thing which is soon to happen to the US Dollar.

Adding several trillion dollars to the debt in the next few years (after exponential increases over the last 7 years in the US debt) will catch up to us.

Zimbabwe being the prime recent example of what happens next.

http://americandigest.org/mt-archives/truth_slant/zimbabwe_hey_ho.php

That was a six or seven figure check to GM…

It used to be a pretty sight, that picture of American industrial strength….

Now it scares me.

It’s easy to believe that rumor.

DCX. Sales Banks. Parking lots all over SE MI wallowing in new Dodge metal.

…yep, that one worked out pretty well too.

To be fair, the Chrysler dealership is doing this to a greater degree, having spilled over into the parking lots of the nearby closed/empty storefronts business, the grocery store next door, etc.

Start the day off right