A lot of the problems are self inflicted, and go beyond the SUV vs small car issue.
Ford, for example, produces really good small cars in Europe. But they can't sell them here because the standards are different. It's more than time for North America to get in line with European and Asian safety standards in the automotive industry. That would allow to desing only once, and to be able to manufacture the one model anywhere.
After seeing the news clips with the Big 3 CEOs in front of Congress yesterday, I'd say let them fail. It takes really big brass ones to collect your millions in compensation and use your private jet to come in front of the taxpayers and ask for a bailout. Why don't they start by following in Iacocca's foot step and reduce their salaries to $1.00??
While I agree it would go far to if they did decrease their salary, as many get bonuses and stock optiosn as well , here is what I have for some CEO's I found recently.
Position Company and ammount
4 Country wide 102,000,000
8 Goldman Sachs 73,000,000
9 Capital One 73,000,000
11 Lehman Bros 71,000,000
53 Cinga 30,000,000
58 American Ex 25,000,000
70 TRW 22,000,000
73 MBIA 22,000,000
82 JP Morgan 20,000,000
85 bank of America 20,000,000
153 Ford 12,000,000
374 Freddie Mac 3,400,000
433 GM 2,200,000
I listed many banks that got money or is scheduled to get money from the $700 Billion.