Second is the actual vehicles they are making. Let's face it, if you're buying a car then you want some combination of performance, economy, luxury, reliability, safety and general appeal.
Performance - Europeans and Japanese dominate that one in most respects
Economy - Korea, Japan, to some extent Europe
Luxury - Europe
Reliabiltiy - Japan, Europe
Safety - Europe
Appeal - Europe, Japan, US only to a limited extent
So GM, Ford and Chrysler are in no man's land in terms of product with most models. There products are a compromise in a world where most don't really want a compromise. Hence they'll only sell at prices which reflect that reality. Add in high production costs and it's a no brainer that they've got a dud business model.