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New Car Glut — USA

Written by Gary North on May 20, 2014

The glut is here.

Some 3.27 million new cars are now sitting on lots across the U.S., more than there have been in almost five years, according to Automotive News. That’s a lot of cars—just enough to equip every man, woman, and child in the state of Iowa with a new vehicle, and just slightly less than the number of iPhones added to Verizon’s network last quarter. A year ago at this time, by contrast, there were 2.7 million vehicles lying in wait across the country; summer 2011 saw an inventory of about 1 million fewer cars.

The Federal Reserve is now facing a slowdown.

As for new homes, the are mostly apartments for renters (families without much money), not single-family dwellings (families with money).

The recovery is stalling.

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13 thoughts on “New Car Glut — USA

  1. It is an old article. from July 2013.
    I trusted Dr. North, but after yesterday flop with unsold cars and today's old article it seems that news on that site are not checked properly.

  2. Yes it’s old news and not accurate. Should have been sourced ad checked prior to passing on. Can’t believe it was posted two days in a row.

  3. i cannot comment on the accuracy of this article. But it would not surprise me if this is at least partially true. The car companies that took bailout have a huge impetus to appear successful. Underline "appear". When cars are arrive at a dealership, the manufacturer lists them as sold. Instant success. Finagling numbers is the basis for any claims of financial success when the government is involved today. It is the old saw, "figures don't lie, but liars can figure". Our brave new world under our liberal masters. See my blog at http://cranky-conservative.blogspot.com

  4. The article is definitely false and North is being stupid posting it two days in a row – http://jalopnik.com/that-zero-hedge-article-on-un

    However, if what you say is true, the cars in the article would not be included in sales figures. They are being stored by the manufacturers, not delivered to dealerships.

  5. tsimitpo says:

    This channel stuffing has become a global problem. By now there are probably as many never owned cars sitting to rot than there are purchased cars on the road. http://www.zerohedge.com/news/2014-05-16/where-wo

  6. tsimitpo says:

    I gave you a thumbs up when I shouldn't have other than you linked to a debunk-ing article that was clear propaganda to propagate the charade that the global economy is not going down in flames. I enjoyed reading the author's flip-flop and we all understand how he had been made aware of his "error".

    Looking at the sales figures – they're falling below projections and last year's sales figures month after month. People are keeping their old cars longer and longer because they just don't have more money to spend. Many of the storage lots that now appear empty have simply had their cars relocated to nearby facilities such as ginormous warehouses that only reveal acres of cheap metal roofing to eyes in the sky.

  7. tsimitpo says:

    C'mon, give us something a little more persuasive. A person doesn't just throw trust away as a reaction to one isolated perceived slip-up. Explain your own flip-flop.

  8. 1baronrichsnot1 says:

    You obviously are not in business, We can't sell anything out here, we have had lots and lots of car salesmen just walk, standing making no money! Land isn't selling, only manufacturing is apartments, no single family homes, federal buildings are booming, no jobs, run and add, no one comes! I tell you, if not in recession now, I don't know what one is! People are choking their bucks like a chicken! When the buying stops, it is almost immediate! Like overnight! You can't coax anyone to buy anything! People are very afraid of americas future! Now, give us your side, something besides it's old stuff! It's old stuff that we haven't ever had a recovery, we all believe that!

  9. Bean Bagger says:

    This is what happens when you eliminate the middle class like the liberals in charge hiding behind an illegal-negro and raising gas prices and keeping them there to benefit the Democrat’s oil barrons.

    The Democrats want us all enslaved again!

  10. The reason that people are choking their bucks like chickens is the ACA. It increased taxes, increased heatlh insurance premium, along with deductibles, and got many people laid off by employers who couldn't afford the premiums for employee insurance.

    I was tight-fisted with my money, too, because I knew that my taxes were going up. Last year I got an 800 dollar refund. This year, on a smaller income, I owed an additional $2,000.

    The only consolation is that if my income gets small enough, I will owe a lot less taxes, eventually.

  11. Europe also has milllions of cars in storage lots. Either we are in recession or there is a serious adjustment coming in the worlds economies.

  12. kane elysee says:

    It would be nice to see updated stats. But what you can say for sure is that the 3.7 m cars didn’t just up and sell themselves over night. I’ll bet the numbers are stunning even now.

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