Yet more evidence of the triumph of trade over state-aid was revealed earlier this week with the announcement that General Motors has lost $1.2 billion in the third quarter of 2009, continuing GM’s dismal run of profit (or rather, loss) postings. The U.S. government owns 61 per cent of GM as a result of the $50 billion bail-out package. This announcement comes just three months after the company emerged from bankruptcy protection and just three weeks after Ford - who were the only major American automobile manufacturer not to claim any state aid - reported profits of almost $1 billion for the same period.

As we documented in a previous F2T post, while GM wallowed in the restrictions imposed by the conditions of their state aid from Washington, Ford was able to get on with improving efficiency and ensuring the long term future of the company and its employees.

As a result Ford looks well set to capture an even greater share of the north-American market next year while GM looks set to continue struggling under the burden of toxic assets and hefty debt re-payments.