Alright, with only 6 posts left for the month, and no real extra funds to go premium, I chose this thread as one of the 6 that gets my attention...
The way I look at it, it's too little too late anyway. I will say my opinion on what should have been done from the start, but never did get on it's feet. Also, Focusing more on Asia than Europe. Asia seems to have it down right, Europe does too, but in a totally different sense and I don't feel like getting into the German, British, and Italian car companies and how they stay alive.
First, refinement. Some of you have already mentioned it, and it is a very valid point. If each of the big 3 had a car to compete with everything the Japanese companies have, without sacrificing refinement, quality, or over all comfort, they would clearly have done better. Lets say that Honda's way of thinking is the right way(which, if you look at how they are doing compaired to the big 3, it is). They went "Look, it might not be the cheapest car on the market, but lets put out a nice small gas sipper to appeal to just about everyone. It will come standard with a couple things that might be optional in most companies.Then lets go ahead and bring out a midsize. It will come with even more 'options' standard and be an over all nice car. If we want to get more into the high end market, we will have a relatively small sister company deal with it,and go all out with the comforts, luxuries, and occasional power increases. We call that Acura." The ridgeline DID sell, but not overly well, Honda from their start until they started dabbling in other things worked wonders. Their little SUV's even do well to this day.
Honda just has it right, not oversaturating the market with 3 or 4 makes, each having multiple models as being the same damn car. keep it simple!
So compairing Ford and GM(@!#$ chrystler, I don't feel like talking about all 3 lol) to Honda:
1.SMALL CAR: Civic, Cobalt(make the SS a much bigger jump in styling than the base model please!), and Focus. All three of these cars should be directly competing, and should have similar refinement and horsepower. If you sacrifice being priced a bit lower than the Civic in order to make an equaly nice car, you have made a wise choice.
2.FAMILY CAR: Accord, Fusion, Malibu. Offering a coupe in this category shouldn't be needed, but the Accord coupe sure is a nice looking car. Offer more standard features that people want! Make power windows and locks standard. Make a nice stereo head unit standard, no tape decks or JUST cd functions with ugly big buttons and no special features. Hell, in this class make power seats and keyless entry standard.
3. ALWAYS HAVE THAT HYBRID OR FUEL CELL VEHICLE IN THE LINEUP. Lets say Ford makes something similar to a Fit or Aveo, or maybe they just offer a special hybrid version of the Focus. That would suffice. But I say Fit hybrid, Aveo hybrid, Focus hybrid or other Ford equivelant, possibly that new Fiesta they are talking about. Something small and simple and great on gas.
4. SPORTY 4BANGER: S2000, Sky, something from Ford. Again, Ford is riding on that Mustang way too much and needs to ditch the Taurus and find something to compete in this category. A lightweight, 2 seat, RWD, 4 cylander sports car. Something that can have some options, the sporty feel, and decent gas mileage.
5. SMALL SUV: Unfortunately a mini van is not on everyones wanted list, and a large SUV isn't either. This IS a market that needs to be around. So lets go like this: CR-V, Escape, Equinox. You don't need 3 or 4 crossovers or small SUVs for a single damn manufacturer.
6. LARGE SUV: Pilot, Explorer, Tahoe. Get rid of the damn Expedition and Suburban. Do we need that half work van/half SUV vehicle? They are huge, horrid on gas, and unneccesary. With gas prices being this much higher than back in the day, we need to think a tad smaller, and the general public can sure agree with that.
7. Mini-van. I think every manufacturer should have one.
8. PICKUP: Obviously there is a market here, and I think having a Colorado/S-10 size and a fullsize is important. This category is simple to explain, so I wont bother.
Now, about the remaining category's: A work van is a vital part of the big 3, so obviously having them is not going to change. But again, no crossing over. Let GMC take car of trucks and work vans, give chevy a mini van and leave it at that. Give Pontiac the enthusiast driven feel again. A G8, A G6, A GTO version of the Camaro. Maybe even toss the Camaro, like old times. TOSS SATURN AND KEEP THE ASTRA AS A PONTIAC SPORT COMPACT. Saab, I think needs to stay. GM owning them does not take away from their roots and their customer base. Do away with Buick, and Do away with Mercury. GM has Cadillac and Ford has Lincoln. If people want a nice luxury car, they have them there. No need for that grey area in between the Chevy or Ford family car, and the Caddy or Lincoln luxury car. Let the old folks and cops drive Malibu's and Fusions.
A cleaning up, reorganizing, and downsizing of all the unneeded models will not solve the problem completely, but will let them focus on a smaller line up, making their cars better over all, and putting them in that Honda frame of mind, that they need to. toss out a special edition or over the top sports or Muscle car, but just 1 or 2. Ya got a Mustang and a Camaro. The Vette is kind of needed to keep around, but Ford might want to get rid of all their SUV's and extra family cars and focus on a Vette competitor, maybe something new rather than a new version of the Mustang.
I have to take a @!#$ right now, or else I would probably say more on other aspects of why the locals let themselves crumble... but oh well. I said enough so far.
On the other hand....you have other fingers.
In my family we teach that boys have a God-stick and girls have a Shame Cave. -John Stewart
And face it.. If you're driving a cavalier, and the airbags go off, the car is pretty much written off. I like knowing that me and my passengers are safer. 
