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GM vs auto sector (green line panel 1 represents Tata Motors [TTM], Ford [F], Honda Motor [HMC], Toyota Motor [TM], Nissan Motor [NSANY], Tesla [TSLA])
And what is really bad, is that GM gets to count those inventoried cars as "sales" even though they have not been sold to a person yet. That's because they were "sold" to the dealer. Keep in mind the dealer doesn't necessarily pay for any car it takes delivery of at the time of delivery.
This is the kind of approach that got GM in so much trouble before. Why do they feel the need to do this? And don't tell me increased demand justifies increased inventory, because GM was admitting that they had way too many dealerships previously and was supposed to be working on eliminating a lot of them (half?). So even if demand was twice as high the inventory should not be going up because they should be working to eliminate dealers.
What Is Floor Plan Financing? | eHow.com
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The dealer rarely "owns these cars" - there on what known as a "floor plan". ... Having managed a boat yard in Maine years ago, we had/used a "floor plan" (Mercury engines & a couple of boat lines) to hold a number of "display models". - Floor plans usually have a "time limit" involved, - anywhere from 3 months to maybe a year. After that, the dealer has to move the product or buy it - with interest.