Part of it was the onerous and useless federal regulations on everything from safety to emissions, which took some years for the notoriously slow-to-adapt U.S. car manufacturers to deal with. Another part was the Japanese competition, which, along with higher-end stuff from Europe, set the quality/economy/service bar ever higher.
I guess, bottom line is, the American companies, having been so stodgy and slow-adapting, couldn't cope with the realities of the market in those years. Fortunately, the worm seems to have turned.
I just bought a new car, well, actually one a year old (let the OTHER guy eat the depreciation cost for that "new car smell", says I), a Chevy, and I must say that I was treated with great politeness and service at the dealership whence I bought it. My EVERY concern was adressed, the price was in line with the book, they shaved a few bucks off to boot, and it was an overall pleasant buying experience. Best yet, the car has all the indications of being the best I've ever owned. It's WAYYYYY fun to drive, handles like a dream, EVERY system works flawlessly, and it's got an easy-to-care-for motor. And since this thread has indeed shown some UGLY rides, in the tradition of those threads where ugly or homely people are discussed, and FFeepers post pics of beautiful ones for relief, allow me to post this one of MY "beauty" (or at least one just like her):
The boys in Detroit are figuring things out. My PREVIOUS ride was a '91 Mustang LX 302-powered coupe that I bought brand new and put 130,000 miles on. It is, in fact, STILL in my driveway, awaiting a new owner.