I don't know how we get out of this one.
Every postwar downturn, the manufacturers responded. The early-mid 1950s, led to Nash creating the compact Rambler (later, Rambler American). That led to Studebaker creating stripper cars (Scotsman) and Ford and GM bringing out new "compact' models.
The 1978 Carterflation brought an explosion of Japanese cars - and the Japanese were on their game, with higher quality and lower prices. THAT led to Chrysler's rebirth and Ford and GM abandoning old ways and leadership (Hank the Deuce eased into retirement, along with Roger Smith). Low-content, stripper cars were the order of the day - we look back now, and blanch, but they were what buyers needed. The K-Car and the Cavalier kept the lights on.
2009 brought lower-content cars - and bankruptcies and bailouts. I guess that's another way to deal with rising debt costs...but it can't be repeated, not easily.
Now, we have Obamaregs. Cars have to meet impossible fuel-economy standards - and makers are meeting them with multiple turbochargers and ten-speed automatic computer-controlled transmissions. They are BARELY meeting them, and the COST, for all this electronic equipment, auto-shut-offs, turbocharger equipment...has sent prices WAY beyond what the average person can justify.
AND...durability has gone into the can. The Indiana State Police had been a loyal Dodge customer for 20 years...the latest police-pursuit model, the Durango, is so trouble-prone that the agency has taken them out of service, including new, just-delivered models. They break and cannot be reliably repaired - this technology to meet fantasy fuel-economy standards, is so fragile.
This is it. We need a new interpretation of the Beetle, or the Scotsman, or Yugo. Hopefully, not made in Yugoslavia. We need it; but there is no WAY, short of revoking these fantasy standards, that we can get affordable, reliable new cars.
My suspicion is, the Obamatons knew this and wanted exactly this to happen. To eliminate personal mobility. What they didn't figure on, was that motor manufacturers - one of the biggest employers of people their favorite skin-color - would not just not sell cars, but would fail and perhaps close for good.
Leaving one more industry in the hands of the CCP, and not employing Americans.