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by Tritis 6413 days ago
http://www.npr.org/news/specials/gmvstoyota/ GM's problem is that it costs them money to make a car.

Profitability per Vehicle Source: 2005 Harbour Report GM: Loses $2,331 per vehicle Toyota: Makes $1,488 per vehicle

If GM continues to lose money on each vehicle sold, how wil a bailout help in any way?

1 comments

That figure is meaningless, it is amortizing the total operational cost of GM over each vehicle sale, when the total operational cost of GM is not directly proportional to number of cars sold- not by a long shot. The article is falsely portraying that as the average sale price per unit minus marginal cost per car, which it is not.