Labor costs, coupled with EPA requirements, C.A.R.B. and unmotivated workers is a big chunk of the problem. When I stopped working on boats, a 250HP Merc OB listed at $15,900 and people still bought them. THAT'S A WHOLE BOAT! Totally insane. Then, there's always the dreaded FICHT system that buried Outboard Marine. I know we have good engineers in the US. What we also have is management that wants big bonuses for getting a project done, with no real recognition for the people who are actually getting the job done. Managers who like to micro-manage every project they get are a huge problem, along with managers who are totally unqualified. I have a friend who works for a defense contractor and he hates it. The bright patches are few and far between and just about every other engineer says basically the same thing about their job.
I have no problem with companies collaborating, if it means better products are the result. Yamaha chose to dump their products on the US market at the end of the agreement term with Mercury Marine, and that created an unfair market. Merc has a hard enough time making a profit and in a bad economy, they're in the position of moving a large amount of their manufacturing out of WI because it costs less in other places.
IMO, the glut of MBAs has made small increments at the bottom line more important than product quality and company reputation. When a series of recalls is looked at as "accounting issues" and they decide not to do things right because the potential cost of a recall is an "acceptable risk", we all lose. It doesn't matter what the product is, either.