Another engine of U.S. manufacturing just ran out of gas. Volvo cars is no longer American owned. But is the downfall of American automobile manufacturing an ominous preview of a far greater economic crash heading America’s way?

On Sunday, Ford Motor Co. announced it had sold its Volvo car unit for $1.8 billion to up-and-coming Chinese rival Geely Holding Group. The landmark deal will vault the Chinese company onto the global automotive stage. For Ford, it is a painful reminder of better years gone by.

Ford purchased Volvo in 1999. At that time it paid $6 billion to acquire the company. But the high hopes quickly faded. After accounting for inflation, Ford is left with more than a $5.46 billion loss. As part of the deal, Ford will remain on the hook for some existing Volvo pension plans and Volvo debt.

The Volvo sale is the latest in a string of sales by the struggling U.S. auto giant. Ford is attempting to pay down $23.5 billion in debt the company took on in 2006. Last year, Ford sold off Jaguar and Land Rover to India’s Tata Group for $2.3 billion.

In 2009, China overtook the United States as the world’s largest vehicle market—a title that America had held for over 100 years, since the first Model T rolled off the production lines. Vehicle sales in the U.S. slumped 21 percent last year, while sales surged by 46 percent in China.

But it is a telling sign that America’s second-largest automotive group is forced to sell off its assets to China’s 12th-largest car maker.

Manufacturing just isn’t as profitable in America as it once was. Taxes, labor costs, greedy unions, vulture banks, onerous environmental laws, consumer debt overload and a decaying subprime economy are all taking their toll.

As consumers continue to retrench, pay off debt and save their homes, America’s borrow-to-spend economy will face tough headwinds. Not good news for all those reliant on selling new vehicles. America’s manufacturing capacity will most likely continue motoring down Contraction Road.

But that is what happens when you have too much debt. Eventually you can’t borrow anymore and the bills have to be paid. The looming question though is: With consumers running on empty, how much longer can the U.S. government continue putting gas on the national credit card before it is maxed out?