The biggest mistake that the big three made was having a business model that relied upon cheap gas and selling a status symbol to the US consumer, even though they all made lots of money selling especially the pickups and SUVs. The problem was that the market was fashion based, it was trendy to spend $40k to $60k on pickups and SUVs with low profile tires, butt warmers, leather, etc., as status symbols, and like most fashionable things that are expensive and are a stretch for the working and middle class it will be dropped like a rock when times get tough. The market was so profitable that Nissan, Toyota, and Honda all also got into the pickup / SUV game.
The sales job was so good that people driving other low mileage vehicles like minivans, sporty cars, larger V6 sedans, etc., were throwing stones at the pickup / SUV owners for crimes against nature, while they were getting the same or even worse mileage. With little in the way of higher mileage vehicles things turned quickly, and when credit dried up and job concerns surfaced things got downright ugly as there were few low cost models to offer. Everyone, the Japanese and others included, had stuffed so much worthless junk into vehicles that they became stupidly expensive, which is the price for having a status symbol of some sort to someone. People were spending over $30k for minivans, $20k for 'economy cars', etc.
Time after time in reviews people complained about some vehicle not having the latest trendy thing, so makers complied and provided what was asked for. Now everyone seems to want something different, and makers are scrambling, struggling to deliver. So GM should be like Toyota ? Toyota is now living with billions in losses, as is Nissan, and even Subaru has changed it's forecast to losses. Honda is still profitable, but they keep downgrading their forecast and it's down 90% from initial estimates.
Some comapnies will fail or will be merged, but there is lots of glass around so be careful when chucking those rocks.
http://www.autonews.com/article/20090116/ANA02/901169980
http://www.nytimes.com/2009/02/07/busine...rd,%20Micheline
http://www.nytimes.com/2009/02/10/business/worldbusiness/10nissan.html