Its somewhat easy to blame inept Detroit management for the decline of our auto industry, but the American people and their buying habits can only be described as schizophrenic in sending mixed messages. Nor can the American government action and inaction get a pass, health care of workers also factors in, and in term of outsourcing, the domestic and foreign auto producers are better than American industry in general.
The Japanese government also put a great deal of planning and government subsidies into their auto industry, while the US government had so such planning. And no such planning is simply designed failure.
The USA seems to worship Adam Smith type free enterprise, but the economic "laws" that govern small businesses nearly everyone has the capital to enter simply do not scale up to huge businesses where mass production economies of scale become supremely important.
In short, this thread misses the mark because there is no simple answers to an extremely complex problem.
But other bottom line, the USA used to dominate the world automotive industry, but now, as a new type of far more efficient automobile, world wide automotive dominance is once more up for grabs. Will the USA and its government once again shoot ourselves in the foot?