Unfortunately for Ford, it was too late for most of us; we think of foreign cars as high-quality and American-made cars as trash. American cars are much better than they used to be, but that's not good enough for a generation spoiled by Mercedes and Hondas.
The rise of the SUV has definitely helped American automakers get back in the game. I hate 'em myself because they are such an aesthetic blight, but I wouldn't dream of banning something the public loves so much.
Incidentally, this law in its latest form strikes me as pretty toothless. All the previously mooted ideas (mileage tax, SUV tax, SUV ban, etc) have been excluded by the new law. I don't think this is something to get frightened about.
Look what happened to the last California absurdity: Electric cars. Does anyone remember how electric cars were going to get 10% of the market by (if my memory serves) this year? The public spoke and that mandate was rescinded.
My guess is that this is a hollow victory for the environmentalist lobby. I'd be surprised if this law is not repealed by 2008 (when it will actually take effect).
D