The inevitable has finally happened, Standard and Poor's have downgraded American auto manufacturers Ford and GM's bond rating to "JUNK". But what does that mean to the car buying public? Little if anything. The change in America's car buying habits have been a long time coming, and this latest blow to domestic autos shouldn't surprise anyone.

Patriotism may only get you so far. 10 years ago "Made in America" was the battle cry, but in a world of low, low prices and super sized value that statement quickly became hollow. A lot of folks I know sit around and crack on imports, especially Asian ones, saying they are too small, uncomfortable and have no power. The argument is nothing new, folks have been saying that since their initial invasion in the early 70s. What has changed is the penetration that Asian imports are benefiting from. Early on they mostly competed with small, compact, economy cars. Now automakers such as Toyota and Nissan have made serious headway into the light truck and SUV market, the last bastion of their American counterparts.

One can easily try to blame rising fuel prices, but this too is an argument as old as the import. Despite some of the lowest gas prices in years during the 90s, Asian imports continued to sell like hotcakes. The reason was a gradual shift from the ultra budget compact to more spacious, luxury models. Some may not realize it, but some of America's favorite luxury models are owned by Japanese companies. (Lexus - Toyota, Infiniti - Nissan, Acura - Honda). This gave Asian imports an incredible foothold into a segment of the market that was chiefly occupied by American and European imports.

In spite of this intrusion into core parts of the business, the American manufactures did little to combat the problem. Slowly their market share has eroded, and Ford and GM have gradually moved their core line toward the light truck and SUV market. Now even that isn't safe, as Japanese firms in particular have targeted not only the SUV but also hybrid technology which is years ahead of anything that GM or Ford has.

Given the importance of the light truck to Ford and Chevy, it's easy to see why investment firms are worried about the companies long-term out look. While some may blame import manufacturers and talk of slapping high tariffs on imports, you really can't blame anyone except the American consumer. As tastes have changed over the years, American auto manufacturers have been slow to change with them. At the end of the day the real culprit for Ford and GM's downfall is a management team that's been so stuck in the past that they've allowed a 20 year cataclysmic change to cut them right to the bone.

Granted, I'm in no way saying that Ford and GM will go the way of the do-do bird, but there is a good chance that these companies have seen their peaks. Not only have the companies struggled with market share, they've also faced the great bargaining clout of the United Auto Worker's Union, which just as GM/Ford management are still so stuck in the "glory days" of the Auto Industry that they can't see the fate which will befall them.

At the end of the day it's great that we talk about American patriotism and protecting jobs at home. But outright business failures like what's happened in the US auto manufacturing sector should not be protected simply because of some sentimental value. The old saying used to be that "What's good for GM is good for the country". That no longer holds true. As America shifts from a manufacturing giant to an intellectual property based system, dinosaurs such as GM and Ford should be forced to adapt to current conditions. We need these executives to look us in the eyes and tell us they screwed up, and not bemoan foreign competition and beg for government handouts. That system might be good for Europe, but it's no way to run a business in MY America.