Put yourself as an executive at GM of Ford. You are in charge of new vehicle design and launch. With Retooling and supply logistics, new models Take 24-36 months to get off the assembly line . How would you have positioned your company to avoid the sudden drop in sales? The competition Honda, Toyota, and Hyundai have a long history of making small cars for their home markets. Due only to market demand they spent decades developing quality profitable small cars. When they came to the USA in the gas shortages of the 70âs they brought the same small cars and had limited success. Over the next 15 years they built much larger cars for the US market. Only then did they start to gain large market share. The US car demand has always been for large cars. The domestic car builders focuses on their strength. Making large mini-vans ,SUVâs and trucks. Fair quality but profits unseen ever by any other car company ever. Only Government mandated CAFE requirements forced them to make small cars which they made no profit. Billions of profits for many years then oil prices spiked from $70 to $150 in 12 months. A sudden market change. A consumer shift from your high profit products into your low or no profit products. It would be hard to forecast such a complete change in the consumer preferences so quickly. Of course the Domestics made mistakes, but for more then decade they made huge profits and are mostly a victim of the quickest switch in consumer demand ever.