Having worked for years in manufacturing, and having watched a large percentage of the American manufacturing base get sent abroad, I am concerned that the problems the domestic auto manufacturers are facing are only the tip of a much larger iceberg. Our continued oil dependance is a large part of the problem. Setting standards to greatly reduce our oil dependance now would foster new invention and make way for new manufacturing enterprises in the field of alternative energy. In return, as oil became an increasingly dirty and unpopular energy solution, we would have something else to export to the rest of the globe. However, that would require long-term planning and foresight; something that we as investors, as well as a nation, are proving poor at.

In 2000, I was shopping for a compact car. Based on my research, I'd narrowed my choices down to two - the Toyota Corolla and the Ford Focus. The Focus had everything I wanted - great gas mileage (better than many of today's hybrids), reasonable power and space, even a hatchback option which the Corolla didn't have. On paper, the Focus was the clear choice.

I went to the Ford dealership, and as soon as I mentioned the Focus, I was dismissed. No one wanted to bother selling me one of "those" cars. They couldn't even be bothered to find one to test drive. I was already wary of buying an American car, after hearing tales of woe from my friends with American compact cars, but I might have taken a chance on the Focus if Ford had tried to change my mind. They didn't even try.

I bought a Corolla.

It doesn't matter if Americans are buying them as fast as Toyota can ship 'em over here. GM, for example, would rather delegate the task of producing subcompacts to Suzuki, hardly the last word in Japanese quality and engineering, and slap Chevrolet badges on them. Just wait until the Chinese get their auto export business in high gear. You won't see another U.S. make vehicle smaller than a Ford Explorer made in the United States ever again.

Ford etc. like to blame health care costs or the strong dollar for why Toyota and Honda are cleaning their clocks, but they don't want to admit the real problem: their cars just don't hold up over time.

The research shows that U.S. cars do compare well with their Japanese competition for the first year or two, but by three years and on there's a significantly higher rate of mechanical problems. By 10 years, there's just no comparison.

Basically, it's in the parts: the Japanese automakers have very strict tolerances for any parts that they manufacture/purchase for their cars. It's more expensive this way, but it's what makes the cars last -- and they care about that. The U.S. makers save a few cents per part by relaxing their standards.

I've had a mechanic give his honest opinion on this once, around 4 years ago, when I was going to start looking for a used car. He pointed to his U.S.-made pickup truck, and said that it holds up nicely -- but only because he's a mechanic. He knows what sounds to listen for, what to do to keep it in its best shape. But for average folks, he said there's no question that Honda or Toyota would be the best choices.

There are two reasons why Ford made a profit last year, one is that Volvo is doing exceedingly well, the second is that Ford, like many US companies, could move large amounts of money into the US with a minimum tax pay off last year.

When I moved to the states I bought a Ford Focus in 2000 under the impression that it was the same car as the European Ford Focus that I had driven in Europe. I was wrong. The car was underpowered and the build quality was no where near that of the European car (plus it felt tinny). I had over 13 recalls in the 5 years I owned it.

The brakes wore out frequently and in the last couple of years the engine has sounded very loud and rough although there's supposed to be nothing wrong with it.

I don't understand why, when Ford has some decent, high tech engines in Europe, and cheap cars like the Ka or Fiesta, it doesn't simply import them to the US. The company is too obessed in the US with big cars and should try selling small quirky cars its sells elsewhere at the Focus price point. Its forgotten that price isn't everything, design and build quality are. OK I can buy a Focus for four grand less than a civic, but would I want to?

I probably would have bought another Ford but reports of loose fitting panels in their new fusion, plus all the complaints I heard about their engines, convinced me it was safer to buy a Japanese car, so I replaced it with a Saab 9-2X (European style, Japanese build quality). I doubt I would buy another Ford unless they get their act together.

There is one thing Bill Ford and other executives of labor-intensive American corporations could do to restore profitability while actually doing social good: provide political support for a Canadian-style single-payer health insurance system in the US.

Done right, such a plan would move the cost of health insurance off Ford's books, eliminating a cost-disadvantage generally quoted at $1,500 per car. Removing health care cost increases as a point of friction in union negotiations is also likely to make unions less hostile and more accepting of needed organizational flexibility.

Funding the cost of health care for all through government revenues instead of corporations would constitute a large subsidy for companies obligated by union contracts to provide health care.