Is GM Really To Blame For This Mess?

I'm watching all of this commentary on CNN and the major networks, and wonder why everyone has missed the mark.  They all say Detroit doesn't build cars that the American consumer wants, and that the missing piece is compact cars.

REALLY?  Is that really the problem because Toyota doesn't exactly make a lot of compact cars like they used to.  Other than the Yaris, Scion xD, and maybe Corolla, the rest are bigger.   What's the bulk of Toyota's sales?  Trucks, SUVs, minivans, and larger sedans.

Is there really that much demand for compact cars like Fiat?  How many of your friends want to downgrade to something the size of a Fiat 500 or Panda? Apparently that's what Chrysler thinks.  

And having driven the 2011 Ford Fiesta, I can tell you that it is on par with the Honda Fit, the best compact car in America.  Let's see next year when it arrives just how many Americans are going to downsize, and let's not include those who would have purchased a compact car anyway. 

The real blame, in the case of GM, should be too much legacy.  Too many dealers and too much UAW is the real problem.  Erase that $2500 hole that the union puts GM in on every car and now it's a fair fight.

The sad thing is that GM is making some great cars right now.  Their full size trucks and SUVs are the best on the market.  The Malibu and CTS are terrific.  And the Camaro and Corvette and down right impressive.