Sure there were problems with labor costs but in the mid-late ’80’s Toyota Celica had a ‘betty’ to announce if your door was a-jar. No American car had this. The wow factor coupled with a affordable price point garnered consumerism attention and money.
Market forces prevail and the cool factor of the hip, airplane cockpit gauges took hold. Detroit countered with the Pinto and Gremlin. or K car even. C-mon. The Japanese skunked us. We did not learn and they took, and continue, to take huge market share.
Simply put, with or without unions, Detroit had viable competition that is winning by delivering a better product.
Relax the enviro constrictions on manufacturing and relax the constraints of energy production and Motor City will return as we will always need lots of new cars/trucks.