In 2014 Government Motors Recalls 72% More Cars Than it Sold in 2013

[Tsing Tao]

And the year isn't even half over yet.

GM just announced its record, 30th, recall of the year.

General Motors is adding 218,000 subcompact cars to its growing list of recalled vehicles.

The new recall covers certain Chevrolet Aveo cars from the 2004 through 2008 model years. GM says the daytime running light module in the dashboard center stack can overheat, melt and cause fires.

The recall posted Wednesday on a U.S. government website is GM’s 30th this year. It brings the total number of vehicles recalled by the company since January to 13.8 million, breaking its own annual record.

Recall documents didn’t say if the problem has caused any fires or injuries. GM says it will provide a plan to fix the problem as soon as possible.

The high number of recalls is fallout from a deadly ignition switch problem that is responsible for at least 13 deaths.

This brings the total recalls for the year to 15.4 million vehicles or 72% more than GM sold in all of 2013.

At this point not even the jokes are funny so we will just leave it with the updated table of GM recalls YTD. At this rate, Microsoft will need to add more rows to its worksheet: the stock 1,048,576 won't be enough.

The good news, however, is that as GM prepares to recall double the cars it sold in 2013, all those dealer lots full of unsellable cars will promptly disappear deep in the bowels of GM factories, never to be seen again.

LINK

 

[LEAPup]

Since GM went into the healthcare, and benefits business vs building cars, this is what those of us with common sense would believe to be the result. Add that with the fact that they're now "government motors," and whala, instant fuck up!

 

[fhl]

This story has everything. Inventory stuffing, broken glass fallacy, big bath accounting, gov't shenanigans. The whole kit and kaboodle.

Zerohedge has been all over the inventory stuffing for some time. Jack up earnings.

What to do now? If they didn't have car defects, they would need to invent some to clean out inventories.

Voila, Recall. Big bath accounting. Take a loss now. clean out inventories. Now they can forget past earnings and look forward to higher guidance because they can restuff the inventories.

So we can look forward to analysts telling us GM is a big buy as they raise forward guidance. (because they'll have big sales restuffing inventories)

And all with gov't help and approval to make gov't motors look good going forward.

 

[Tsing Tao]

"One could say things about what is now without doubt the biggest company joke in the history of the US - maybe global - automotive sector, putting even East Germany's infamous Trabant to shame.

Things like following the just announced latest recall of another 7.6 million cars across models from 1997 to 2014, and another 800K+ cars thrown in just because, GM has recalled more cars in the first 6 months of 2014 than it has sold in all of 2011, 2012 and 2013. Which incidentally would be true as the chart below shows."

Things like it took GM over a decade to that these latest recalls affecting cars made in the 20th century resulted in "seven crashes, eight injuries and three fatalities."

Things like GM expecting "to take a charge of up to approximately $1.2 billion in the second quarter for the cost of recall-related repairs announced in the quarter. This amount includes a previously disclosed $700 million charge for recalls already announced during the quarter." Of course, it goes without saying that this now weekly, forget monthly, charge is clearly non-recurring, and one-time, and those 160 hedge funds who are long GM stock are praying isn't allowed to enter Non-GAAP EPS as suddenly they will be left holding a stock that has far less value.

Things like why on earth is anyone still buying the absolute garbage this company still makes, when even it now has admitted it will risk customer lives on a grand scale if it allows it to save some shareholder value.

Things like it may get nastier for GM now that moments ago, finally and long overdue, the Orange County DA filed a civil lawsuit against GM for "intentionally concealing defects" and putting human lives at risk in order to boost profits.

Things like we can't wait for how many million cars GM recalls next week.

We won't say any of those things. Instead we will merely show a table laying out all the 28,470,653 cars GM has recalled in the first half of 2014: a run rate which at this rate will mean GM may recall more cars by the end of 2014 than it has made since emerging from bankruptcy!

 

[TGregg]

High time for the obamanation to make GM car purchases mandatory. And require employers to purchase GM cars for their employees! Yep, you'll get a nice, "free" GM car that you'll be afraid to drive to go with your nice, "free" healthcare that you'll be afraid to use. Heaven help you if you get injured in your Government Motors car and have to go to the Government Hospital.

 

[377OHMS]

High time for the obamanation to make GM car purchases mandatory. And require employers to purchase GM cars for their employees! Yep, you'll get a nice, "free" GM car that you'll be afraid to drive to go with your nice, "free" healthcare that you'll be afraid to use. Heaven help you if you get injured in your Government Motors car and have to go to the Government Hospital.

lol

Ford is booming and GM is going to have a 2Q write-down.

It is as though Dearborn and Detroit were located on different planets.

 

[Ricter]

If GM can get clear the recall backlog rapidly enough it will finish with a better reputation among customers overall. Everyone knows cheap Chinese junk happens. Their immediate problem is getting enough replacement not-quite-so-cheap Chinese junk switches to dealers.

 

[Tsing Tao]

If GM can get clear the recall backlog rapidly enough it will finish with a better reputation among customers overall. Everyone knows cheap Chinese junk happens. Their immediate problem is getting enough replacement not-quite-so-cheap Chinese junk switches to dealers.

Haha...sure.

 

[AAAintheBeltway]

I rent a fair number of cars. I have had three American cars that I might have bought, a Mustang and a Dodge Charger and surprisingly a Dodge Dart.

Every Chevy has been terrible. I thought the Ford Focus was supposed to be good, but the one I had was junk. Could barely keep it in the lane the steering was so bad.

Had an awesome Mazda 3, really terrific car. How anyone could drive it and the small Ford and Chevy and not buy the Mazda mystifies me. Had a Subaru that was a lot of fun but too buzzy for some.

Toyota Yaris, odd but functional. Honda Accord, nice, well thought out. Toyota Rav4 , great small SUV.

 

[Scataphagos]

"... Had a Subaru that was a lot of fun but too buzzy for some.

Which Subie? I have a 2011 Outback... all around very good. I've driven a Legacy... thought it was excellent and a snappy performer.

Japanese cars... especially the ones made in Japan... generally have the best reputations.

I also have a BMW 535. It's nice too, but at 2X the cost of the Subie, not really worth the price diff.