America made gas guzzlers that sold well in the USA, and less well, but OK, in other countries. Then the gas crisis happened, and suddenly people started to realize that gas guzzlers were not that great. That is why Toyota and other East Asian car companies started taking off. The lower sales abroad were a warning that we were going to lose sales here. We spent much of the 70's and 80's having to bail out the failing American car makers.
You want us to bet our car companies on the gas guzzler again. Even though we will not be able to export them, you say that we could just consume them all in the USA. But what happens when consumers in the USA stop buying them. We could create import barriers, and slowly become Brazil, or worse yet North Korea.
Or we can evolve, and make better cars.