How exactly does that work?
If GM decides that it needs a certain price to avoid operating at a loss, can the federal government still demand they offer units at below manufacturing cost?
There must be some law that exists in emergency or war like circumstances where the govt have the power to nationalise/takeover an asset for their own requirements. For instance if the Govt wanted 80,000 vehicles for an emergency then GM would be chuffed.
The way that I interpreted the situation was that it's better for GM to operate and keep their own employees going so they named their price.They have the benefit of efficiency and quality.
The govt are using standover tactics with the powers they have to lower the price, a nationally run project would cost much more than what GM can produce and distribute it for so they are standing firm on their offer. I can't say if this is good or bad but if it keeps people employed then they should just pay the money.