The problem is that US car makers are getting a Walmart mentality. Car buyers want quality, like Honda or Toyota, or perceived quality, like Mercedes. Can you remember when Yugo's came out in the 80's? Cheap, unreliable transportation. I haven't seen one in 10 years or more. The car makers price crying sounds a lot like Harley did in the 80's.
And the size thing. At the auto show last month, I sat in the vette and Honda S2000. They felt great, but the price was high. I looked at the price of the Toyota MR2 and it was half the Honda. A young man was sitting in the car. I asked him how it felt. "Great" he said. He got out and his head just about reached my shoulder. I sat in the MR2 and with the seat all the way back, my knees hit the steering wheel.