Wild Ass Rumor of the Day: GM Channel Stuffing?
Channel stuffing means forcing dealers to take more cars than they can sell, or making the vehicles and parking them somewhere or other. It’s an art that was perfected by DaimlerChrysler just prior to the automaker’s assumption by Cerberus Capital (a company more than a little familiar with the dark arts of dark arts.) The upside: the company books a vehicle as “sold” once it does an Elvis (i.e. leaves the building). The downside: there’s always a reckoning. One of our spies tells us that GM can’t cut production fast enough; new units are beginning to pile up here, there and everywhere. (Confirmation to email@example.com.) Meanwhile, one of our friendly GM store owners tells us that The General’s about to launch a new dealer incentive program. The new deal will encourage dealers to, as he puts it, “order unneeded and unwanted inventory.” “We’re talking about two to three thousand dollars in extra stackable rebates,” the mole reveals. “Depending on how much gas [new units] you take.” This does not please our guy on the front lines a bit. No sir. “It’s just great,” he kvetched with a dollop of sarcasm. “Unfair and unequal pricing to force franchisees into paying dangerously high floorplans.” Translation? “If you manage your units in a reasonable and sensible way, you are unable to compete on price.” Just another indication that this ain’t no party. [thanks to you know who you are X3]
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