In order to make a profit they had to sell large high-priced cars.
Nope. The way they chose to make a profit was to sell large high-priced cars.
When gas is cheap, many people don't care if their cars are gas guzzlers. So the crowd that wants SUVs bought them. The rest of us bought reliable small, fuel-efficient, foreign cars since there really was no domestic alternative.
Gas makes it's way to $4+/gallon and everyone wants to jump on the fuel-efficient car bandwagon, and no one was left on the gas-guzzing-who-cares bandwagon. If American car makers had designed cars to fit the fuel-efficient market alongside the SUV market, they would have still been able to make profit. They ignored one market; foreign manufacturers didn't. Toyota still made the Tundra while it made the Corolla. The American assembly line workers would have been perfectly happy to make a car that would sell, but they can only make the cars in the quantities the company decided to have them make.
The execs and designers made a bad business decision. Good thing that the execs don't need a labor union to ensure they get reasonable health insurance and retirement benefits! Heck, if the company wouldn't provide those kind of benefits, they'd just get a job as an executive for Sears or Georgia-Pacific, or any other big corporation since business execs usually don't know shit about the businesses they run and are completely replaceable by another business exec idiot! Lets just screw all the stupid laborers 'cuz labor unions are evil!
Another design problem is reliability. Read the Consumer Reports car guide from the last several years. Each year, they print a paragraph lamenting the absence of many/any American cars on their "reliable used car" list. If that paragraph hasn't been pasted on the wall in the board rooms of all the American car manufacturers for years, they are obviously idiots. If the company fatcats haven't been asking themselves every day of every year of the last decade "why can't we design a reliable vehicle?" they deserve to be forced to live on zero pay while they pay their hard-working factory workers out of their sold personal assets.
Or, better, they should be forced to work 60-hour weeks in the assembly lines. You know, without "luxuries" like health insurance.