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.