American auto makers

I think they had the chance but they killed it, the chance was the “electric car”, and you should see this amazing documentary. The movie explains how car industry had given up a genius idea that could have revolutionized the way we drive for ever.

The idea was a simple and efficient electric car neither hybrid nor hydrogen) that could have marched the American industry to the top again, but they gave it up – what a shame.

One of the setbacks is the price of gas.All those big volume US cars are using to much gas and there are very little US car models with a low gas comsumption.Also the fact that European and Asian cars use better materials and are better finished plays a role.PAul

Become very green and very cheap.

Also have better marketing and become unique in its designs.

Other answers are more complex, like change the roads in the US so that they are interesting and so that there is a point to make cars that actually handle or change the state of minds so that people change lanes and start driving like Italians (what's called rackless driving in the US of A) or in other words take a chance instead of being rich petit borgouas.

The problem is a deep social one. Empires fall because they lack something to want and because their system of values has too many internal contredictions. The US believes in taking chances and being pioneers but has too much to lose so the people act cowerdly, hence their cars are not interesting. They make cars for people that want to move predictively and this is far from thrilling. They make SUVs for people who do not go out of the paved road (because they fear the wilderness as much as they adore it) and this is really patetic.

But all this is hard to change, so I would stick to money because that's what they know best - green and cheap.

Well, what exactly

I think that the american companies improved during the last couple of years.

Once they werent reliable at all  - even worse than the french companys.

I think that the best and most reliable now are the GM - Chevrolet, GMC, Buick, etc. Ford is good as well.

The cars you should go away from are Chrysler and Dodge. They are what you can call a "1 year car". maybe they seem good but you'll have to be "connected" to the garage at all times...

They are not what you call reliable....

Keep that in mind.

By American auto companies, lets assume you mean GM, Ford and Chrysler which are all based in the US and pay US corporate taxes.  The formula is simple, yet will take a long time to come about.  They are already beginning to build higher quality, better driving and more visually rewarding vehicles.  The "big 3" will need to continue cutting their cost base down, especially on the labor side.  The import brands are already showing signs of slowing down, especially now that the US economy is slowing.  The playing field is beginning to level out.  I suggest that the harder our economy falls, the more the value of domestically produces vehicles will appeal to our consumers.  So, cut costs and continue to design and build quality vehicles that meet consumer needs.  Over time, consumers will re-evaluate and change their perceptions.

There are two problems reponsible for the big 3 current crisis. One is that the labor unions have been reponsible for such high wages that American carmakers can not compete with the Japanese as far as pricing goes.The second is that the big three failed to see ahead and start researching ways to build cars that get good gas mileage. They rode the tide of big SUV sales that were making great profits, and when gas prices went through the roof the American car buiders got caught with their pants down.