Why can't American firms make small cars?

Answer:  They can.  Meet the bestselling cars in Europe:

1st: Peugeot 207 (437,505, +105.5%)
2nd: Volkswagen Golf (435,055, +4.5%)
3rd: Ford Focus (406,557, -7.5%)

4th: Opel/Vauxhall Corsa (402,173, +41.7%)

5th: Opel/Vauxhall Astra (402,044, -7.9%)

6th: Renault Clio (382,041, -11.5%)
7th: Fiat Punto (377,989, -5.9%)
8th: Ford Fiesta

(300,566, +0.6%)
9th: Volkswagen Passat (300,566, -9.4%)
10th: BMW 3 Series (295,312, +2%)

In other words, four of the top ten cars in Europe last year were small cars made by an American company (Opel is GM's European marque).  People who criticize Detroit for insisting on making only gas guzzlers have to ask themselves:  why weren't these cars made here?