This is a bad place for an automotive assembly line.
Americans might love President Obama, as his high popularity ratings show, but they don’t think much of government intervention in the auto business that began under the extremely unpopular Bush administration, which Obama continued and expanded. This comes from a new study by auto consultancy AutoPacific that says more than half of consumers think auto company bailouts were a bad idea. Whether the current administration suffers the same precipitous decline in popularity that saw Bush leave office with the lowest ratings in history remains to be seen.
Fully 81% of respondents agreed that the faster the government gets out of the auto business, the better.
The online survey of more than 900 U.S. consumers was conducted last week following the filing by General Motors for protection under Chapter 11 of the U.S. Bankruptcy Code.
Highlights include:
- 48% disagree that having the government in charge of General Motors and Chrysler will result in more fuel-efficient cars and trucks.
- 54% disagree that having the government in charge of General Motors and Chrysler will result in much cleaner cars and trucks.
- 66% disagree that having the government in charge of General Motors and Chrysler will result in cars and trucks Americans want to buy.
- 54% of respondents believe that General Motors should have been allowed to fail, while 58% believe that Chrysler should have been allowed to fail.
Americans aren't thrilled with government involvement in the U.S. auto companies.
AutoPacific did not say if the survey was conducted for one of its automotive clients.
“Clearly Americans aren’t thrilled with government involvement in the U.S. auto companies,” said George Peterson, president of AutoPacific, which publishes a wide variety of syndicated studies on the automotive industry.
Skepticism also surrounds Fiat’s takeover of Chrysler, according to Peterson.
American consumers do not see Fiat as Chrysler’s savior. More than 47% of respondents believe that Fiat cars will not sell well in the U.S. Almost 43% believe that, bankruptcy or not, and Fiat control or not, Chrysler will fail in the next five years. In contrast, only 19% believe that Fiat cars will be a welcome sight in U.S. dealerships, and only 13% say that Fiat cars will save Chrysler.