In the real estate business it's "location, location, location" that matters, but in the auto industry, it's all about "product, product, product."

The wrong product mix, not having a car to compete in a hot market niche or keeping an existing model for years without major changes will cripple a car company no matter how much money is saved on labor costs.

"We have 26 segments now in the auto market and you really need contemporary, fresh products in as many segments as possible nowadays to compete," said Tom Libby, senior director of industry analysis at the J.D. Power Information Network.

So how are the domestic auto companies doing when it comes to the vehicles on the showroom floor?

General Motors

GM has gone through a dramatic renaissance over the last few years, and several of their brands -- Chevrolet, Hummer, Saturn and Cadillac -- have their markets covered admirably well.

GM has learned that you can't have one of everything for every make and still maintain a focused, coherent brand image that makes sense. The Detroit automaker must continue to be sure that there is no model overlap and that a vehicle fits the image of the respective brand.

They also need to speed up their introduction times for products.

"The key for them is replacing products in a timely fashion. Honda and Toyota have a rigid schedule to do that every five years. You can't let products languish in the market," said Mr. Libby.

Another GM strength is that it has some strong foreign brands, such as Germany's Opel and Australia's Holden, that act as a kind of "farm system" to provide attractive products for North America.

That's what has rescued Saturn, the new "darling" of auto journalists because of the dramatic improvements in its product lineup -- while still holding on to the no-haggle, welcoming dealer atmosphere people love so much.

Saturn took German Opel models and modified them for the American market. The practice works because German Opels aren't sold here.

"I don't think there's much chance that the typical domestic buyer will give two hoots about whether the Saturn is identical to Opel or not because they will never see one," Jack Nerad of Kelley Blue Book said.

That brings us to Buick.

Contrary to what most people may think, Buick is not GM's problem child.

In fact, "Buick has traditionally been a profitable brand for GM," Mr. Libby said.

While the company certainly sells fewer cars here than it did years ago, it has become an international brand, thanks to strong sales in China, where it is a status brand. Thus, Buick's slow U.S. sales are more than offset by the success it's having in China.

The last two Buick products -- the Enclave crossover and Buick Lucerne -- clearly fit the Buick image, thanks to the chrome, the elegant flowing lines and the road presence. The brand knows what it is -- and that's the greatest asset any company can have.

Buick does face challenges -- lowering the age of its buyers, who are among the oldest in the industry, would be a good start. The Enclave is having success attracting younger consumers, but that isn't enough.

Buick also badly needs a so-called "halo" or "must have" car with an air of unattainability and mystique. If it follows through with published reports, that problem may be solved with a dramatically styled Buick Riviera concept coupe. Riviera is a name with a lot of brand equity, thanks to the beautiful designs of the 1960s and '70s.

Pontiac also has returned to its heritage: a lineup of high performance, sexy cars. The company that brought us the GTO muscle car, the sophisticated Grand Prix and the Firebird muscle car is now building the popular Solstice sports car, the G8 high-performance sedan and the sleek G6 coupe and convertible.

But Pontiac still must consider whether having a compact economy car, the G5, and a small crossover, the Torrent, fits with its performance image. If not, those two must either be redesigned or dropped.

Ford Motor Co.

Ford has some strong products on the market.

Ford's F-150 continues to dominate the truck market with a wealth of varieties, strong interiors and a quiet ride. The Mustang is one of the greatest automotive icons in history. And the Ford Fusion, Mercury Milan and Lincoln MKZ have won awards for quality, safety and value.

As it prepares for the future, Ford's biggest asset is its name and heritage. There's something all-American about the Dearborn, Mich., company.

Ford has started to capitalize on its history and lore imbuing its vehicles with unabashedly American traits and styling.

But Ford's biggest problem is money. It takes deep pockets to develop new products, and more than the other domestic automakers, Ford struggles with look-alike models, such as the Ford Escape and Mercury Mariner, and outdated products, such as the Ford Ranger pickup, Lincoln Town Car and Mercury Grand Marquis.

But it won't be easy to jettison some of those products. These cars and trucks bring in money and profit, particularly since their tooling costs have long since been paid off. But they also are a drag on the company's image.

Ford also needs to make some important decisions on its Mercury brand. Several options can be considered. One would be to use Ford platforms but use completely different styling. Another would be to copy Saturn and bring in the well-regarded German Ford models and rebadge them as Mercuries.

Or it can drop the line altogether.

"There's always been this argument about Ford and Mercury. People say that Mercuries are just rebadged Fords," Mr. Nerad said. "But the answer to this is that there's a percentage of people who will not buy a Ford, but who are willing to buy a Mercury. A lot of Mercury business is incremental to the Ford brand and it gives them economies of scale to make all their products less expensive."

The third Ford brand, Lincoln, is being repositioned as the embodiment of true American elegance, as shown in the MKZ luxury sedan and the MKX crossover. Everything else Lincoln does should carry through that theme.

Chrysler LLC

Fresh from having been purchased by Cerberus Capital Management LP, the Auburn Hills, Mich., company has the cleanest slate and the biggest opportunity to transform itself.

Chrysler has some enviable tools at its disposal. First, it's the quickest and most responsive of the Big Three when it comes to designing new models and bringing them to market.

It's also the company most willing to take a risk and push the envelope, even if it means occasionally falling on its face.

Now for its problems.

It has too many full-sized SUVs -- Jeep Commander, Dodge Durango and Chrysler Aspen -- at a time when large SUVs aren't selling. Given that there are so many other areas of the market that are growing, it makes sense to drop at least one, preferably two, of these products.

The market for small subcompacts, such as the Honda Fit and Chevy Aveo, is hot, but Chrysler has no cars smaller than the Dodge Caliber.

Chrysler also needs to find a European, Korean, Chinese or Japanese partner to share platforms and spread the expense of design.

It also may need to shore up its engineering and technology staff now that its ties with Daimler-Benz have been dissolved. Some of its more recent products, such as the Dodge Charger and Chrysler 300, include a lot of technology and parts from Daimler-Benz.

Brand-wise, Jeep and Dodge are in the best shape. That's because both lineups reflect a singular focus on the brands' heritage.

Chrysler needs to decide what it is: purveyor of middle-American family cars or an entry-level luxury brand with strong American design appeal. It can't do both -- or at least can't do both well.

"I think that what happened with Chrysler is that its Chrysler-Plymouth dealers no longer had the low priced Plymouth to sell when it was dropped, so they are now spreading Chrysler over a larger price range," Mr. Nerad said.