You seem to have not lived during the 1980's and the Gipper's tariffs on imported vehicles (https://www.csmonitor.com/1981/0320/032039.html).
While European and Asian consumers got more modern and fuel efficient vehicles over the decade, we were left with vehicles and engines that were 1-2 generations behind because:
A) they were already developed and all the tooling was in place to make them for the non-competitive US market without any changes in cost to build.
B) the US manufacturers hiked their prices for more profit, while still selling the older designs.
Yes, the Big-3 got some breathing room after the prior few years gas rationing and milking their sales of land-yachts (ala the current trucks/suv's/etc), but they lost any sense of innovation for the US market. Just find any old car mag from the 80's and you can see the lustful prose for a Euro-spec Ford Escort vs. the detritus foisted upon the US consumer.
Its a good thing to have standards and goals. Nobody's going to spend a fraction of a cent more than they have to. There is no competitive market, just a race to the bottom.