NPR: GM vs. Toyota: By the Numbers

Number of Plants in North America

Source: GM & Toyota

GM: 77, all unionized. Plans to close 12 facilities by 2008 (see press release).

Toyota: 12, three unionized in Long Beach, Calif., Fremont, Calif., and Tijuana, Mexico.

Average Labor Cost per U.S. Hourly Worker

Source: GM & Toyota

GM: $73.73

Toyota: $48  

I don't see that it's true that the manufacturing power of GM is somehow needed for military reasons. Any war big enough to require the complete conversion of the GM factories to military production is a war in which very little of humanity is left after a very short time (and the GM factories are reduced to smoldering radioactive waste at any rate).

I honestly don't get what you're saying about Ford. Why would they be the least prepared? And what you're saying about GM and Chrysler's market valuation not being determined by economic contingencies is off in some other reality than the one we live in. Yes, Republicans and a lot of New Dems want to kill the unions. Doesn't determine the fact that the companies are making huge losses because they have sucky cars they're selling for too little money.

GM and Chrysler (Ford, too) are simply in a very poor position right now. I recommend reading the report 'Sustainable Value in Automobile Manufacturing'. There is simply no area in which these companies are efficient, are not trailing their competitors by a significant margin.

These industries are dying due to a number of factors. If these factors are not alleviated, you can pump money in endlessly. But it might be a better idea to improve the economies of the rust belt states by spending that money on something else. As in, provide a comprehensive social reinvestment programme to diversify the economies. It's what the Dutch government did when it closed down the (state-run) coal mining industry in Limburg. Worked out splendidly.

I think that GM's company structure lends itself poorly to global competition. If the US govt. takes over, it should at least sell all foreign factories and brands and move to transform the US business to a 1 or 2 brand model.