Instead, it had a bit of bad luck (requiring a recall) and it now faces stiff competition from two companies kept in business by massive government subsidies.
I think most people would still rather buy a Toyota than a Chrysler, Ford, or GM vehicle, on the basis of both safety and reliability -- and increasingly performance and styling.
The fact is, Toyota already won in the marketplace. It deserves to have a near monopoly because it fought harder and smarter for decades, slowly earning customer confidence and loyalty. What were the fruits of its labor? Now it gets to fight against massively subsidized ghosts from its past who have already lost the battle but are reanimated by politicians waving American flags, etc.
And now the American press seems to be having a field day claiming that Toyota has failed after one major recall. Note that similar stories about Toyota's demise surfaced after the firm had its first unprofitable quarter ever at the same time that two US automakers became insolvent.
This anti-Toyota propaganda really boggles the mind.