The recent problems faced by the car industries in the USA can be explained by simple method as sale of cars produced by major car manufacturers in USA (such as Chrysler, Ford and General Motors in the car manufacturing hub of USA i.e. Detroit) has substantially gone wrong. The sale of small cars for domestic use, trucks, buses, commercial vehicles are taken into consideration. The small car segment is mainly targeted towards the population buying small cars through bank loans. The banks doling out loans were substantially increased and collections of receivables became less, thus the collection replenishment of Bank incomes also becomes troublesome, and banks became insolvent. The buying power of public in USA subsequently went drastically down due to inflation and global meltdown. Thus, essential spending became more priority. There was a time when a small vehicle was necessary to all Americans. Now it was reversed due to heavy debts and inflation, jobs lost and allied problems related to spending power of the public. Truck and bus industry have miserably failed in the recent past in the USA. In addition, it seems beyond repair that the capital operational costs of manufacturing related to such types of cars for commercial use vehicles have increased exorbitantly high, but the income level has not increased accordingly. (Heaton 2007) The technical team on the shop floor of car, along with Quality control team and research and development team, is producing cars with added GPS, cruise control and sports exhaust. Cars made with so many fancy gizmos, also added to the cost manufacturing cars saleable in the market. Any small vehicle for transportation for the general mass should have been targeted with fuel efficiency, comfort of travel, stable performance engine with efficient brakes, safety of passengers, sufficient space to carry passengers and most of all it should be following a criteria to make a cost effective cars. Cars should be available at a reasonable cost; good mileage for a gallon of gasoline with less pollutant emissions is the real need. Whereas, adding fancy gizmos, which are not all essential requirements for the mass, was considered and implemented, thus making wrong decisions. The workers who produced these cars are also a big hindrance to the manufacturing of cost effective cars, as they created more problem by demanding higher wages, union demands which added costs to the cars manufacturing. This is also being one of the essential components to be considered as a hindrance to the costing of the cars. If we have overhead expenses very high, it will add cost to the manufacturing process. On top of all these, the management attitude towards planning, design, action on Quality Assurance and research and development, raw materials costs are also to be blamed partly. The Sales pattern is also to be rectified, because the sales managers and executives, who are selling to the dealers, car show rooms owners, have less efficiency to complete the sales. Many a times, cocaine or marijuana was found in the possession of Sales Managers and executives of American car manufacturers. Thus, the very foundation of efficient sales person is weakened due to th