Well, to my eye there are several reasons the US auto industry is in this fix, but I won't go into them at this point.
I ax you this, though: What the hell ever became of a la carte ordering? Why must it be that if I want a sunroof, I must also order the Hans Gruber 14kW audio package, dual-zone climate control, bi-xenon headlamps and a rear spoiler? A $500 sunroof turns into a $4000 option group. I understand having option "packages" but why can't a person simply order the one thing they want without having to get a bunch of shit they don't?
Pontiac has screwed up badly in the last few years. The GTO and the Aztek being perfect examples (the GTO needed to be more striking and less Grand Prix in its appearance--otherwise it was a phenomenal car). However, they've been showing signs of life lately, particularly with the popular G6 and the impressive G8. It seems to me that if any GM division should be staring the guillotine in the face, it would be Buick... but with the deletion of Oldsmobile I suppose it's their only division with entry-level luxury.
I certainly don't have the solution, but I think GM needs to get back to its brand alignment:
Chevrolet = Inexpensive models for the masses. Sure, they can option up but some options should be left to other divisions.
Pontiac = Performance-oriented models with nicer appointments than the Chevs.
Buick = Entry-level luxury, price point around the Ponchos with less performance stuff and more creature comforts... for instance, trade magentorheological shocks for dual rear-seat DVD monitors.
Cadillac = Premium luxury and performance.
It's my opinion that Corvette should be its own brand. Though inexpensive for what it can do, it really doesn't live in the Chevy world.
I also think GM needs to do away with its bullshit dealer setup. I should be able to walk into any GM dealership and purchase any GM car, period. In one place which I lived, the only GM store in town where you would get treated well, good service after the sale, and a fair price only sold Pontiac and Buick. The Chevy, GMC and Cadillac dealers were shysters, pure and simple... but if you want a Chevy truck, you have to talk to them or shop out of town.
Fuck protecting the dealers in situations like that. I say let 'em fight it out, and may the best dealer win.