Big Shift: Poll says just 25% of Americans now favor automaker aid
During his state of the economy speech on Capitol Hill, President Obama was passionate in stating his commitment to saving the domestic auto industry. While domestic automakers have the President's support, the general public may be less receptive to more government loans. A recent USA Today poll taken in the days before President Obama's speech shows that only 25% of the 1,013 Americans polled are now in favor of additional assistance. That's down from 61% in December just before the government agreed to $17.4 billion in loans to General Motors and Chrysler.
While the majority of people surveyed are not in favor of additional government loans, 51% believe that all three automakers will survive this tumultuous time. Without additional loans, GM and Chrysler say that they will be forced to declare bankruptcy, which both caution is a very risky endeavor. While Chrysler and GM are getting the lion's share of attention, Ford's cash hoard isn't likely to last too much longer if the industry continues to deteriorate. Himanshu Patel, an auto analyst at JPMorgan Chase, feels that the Blue Oval is only 9-12 months behind GM in the race to insolvency. Patel feels Ford's cash on hand will fall to $9 billion by year's end, the minimum it needs to stay in business.
[Source: USA Today | Image: Darren Hauck/Getty]
Reader Comments (Page 1 of 3)
Tang 2:34PM (2/26/2009)
As both a Ford fan and a direct family member to a Ford employee, I sure hope Himanshu Patel is wrong. I mean, after all, he is at JPMorgan Chase.
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Max 4:42PM (2/26/2009)
Betcha the flag is made in China.
refugee7 3:38PM (2/26/2009)
But JP Morgan Chase is doing moderately well due to their conservative nature. Then again, they are pessimistic.
Jared 10:44PM (2/26/2009)
You can tell the 1,000 people polled in this probably don't even know where the oil dipstick is in their car. 51% said the big3 would make it through this? Anyone with half a brain knows Chrysler is taking its last breaths, and GM will either become bankrupt before years end or will be downsized considerably. For all we know, the Big3 could become Ford's General Motors. Ford has a business plan and cars that will actually sell in mass. GM doesn't really have many mass cars, but has very nice niche cars (camaro, corvette, etc.). chrysler has jeeps and the viper.
SimbaDogg 12:05PM (2/27/2009)
i'm with you man, i hope ford can pull through this. if they, at the current burn rate, can go another 9-12 months, it seems like they might be able to pull through it. all these reports, for example from FR chairmain bernanke, the the recession could very well end this year, and recovery could begin in 2010 is certainly a sign of hope. If ford can make it though this downturn w/out having to take a penny of tax payer funds, they'll truly have a new image about them.
jesus, talk about a run on sentence.
Dave 6:26AM (3/03/2009)
You heard it here first.
General Motors, a wholly owned subsidiary of Ford Motor Company.
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Sektor 2:57PM (2/26/2009)
Ford isn't in much better shape.
They didn't take any bailout money, but took loans and owe a load of money.
Brent 2:42PM (2/26/2009)
I don't support aid.
Free Market for the win!
(I realize the US doesnt have a free market.)
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jinsei888 2:45PM (2/26/2009)
idiots...we've been telling them from the start not to aid the domestic auto industry...but they did it anyways, and all these naive supporters are now changing their minds...idealists...
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David H. 2:50PM (2/26/2009)
Shhh. Don't let anyone know that new Saturn Vues are made in Mexico.
AMERICA! F*CK YEAH!
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Gary 3:02PM (2/26/2009)
And ALL Hondas, Toyotas, Nissans, and Subarus are made in America, too. So we should support them.
hokieman09 4:01PM (2/26/2009)
@Gary
That's just not true and they build cars here because they don't have to pay their workers what the big 3 have to pay theirs. The differences in pay between factory workers in foreign factories and those of the Big 3 are ridiculous. Just because its make over here doesn't mean that we reap all the benefits. Their still Japanese companies based in Japan.
That One Person 7:28PM (2/26/2009)
Global market. Get used to it.
Look where your TV is made. Guess what, there are still TVs made in the US!!!
hh23 1:12PM (3/03/2009)
The Japanese car makers do not build hardly any of their cars here. Most are not built in America. The cars they put together here are of foreign content and the workers are paid much less then the Domestics.
Buy and drive what you like. However, don't drive around in your Prius and act like you are the greatest savior of America... because you are not.
It is sad that America is so naive. They think because Toyota employs 300 people in Kentucky that buying a Toyota is somehow helping America. I guess once the Domestics go under we can all get buy on our Welfare checks. I wonder why the shift in our society has gone from wanting to be the world leaders in everything to being ok with other countries taking care of us. Like there is no consequence of everything we buy being made by foreign companies in foreign countries.
Maybe these 75% are right and we can just do nothing and will be ok. Have all our high paying, middle paying, and low paying jobs outsourced and somehow everything will be ok. Other countries will take care of us and protect us because they are all happy shiny people.
Fazzster 2:46PM (2/26/2009)
The only polls worth reading are the polls in which voters are polled. If you did not vote in this election, your opinion does not really count...so here is my opinion: Kudos for Ford so far for not taking the dough. Who wants to buy a car from a company you had to bail out with your own hard earned money.
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Brent 4:54PM (2/26/2009)
Voting has no effect on whether or not an opinion matters.
Yikes 2:48PM (2/26/2009)
Funny that picture contains the Saturn Vue.
Want to know an interesting stat.
With the GM powertrain, the domestic content was lower than the VUE with the Honda powertrain. Interestingly, the Honda powertrain used in the VUE was engineered, designed, and built in the USA.
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Level 2:48PM (2/26/2009)
Advice from a Banker?? hahahahhhaha that has to be one of the funniest things I have heard today, Didnt they loose money in the trillions?????
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montoym 8:05PM (2/26/2009)
Chase is actually doing quite well in addition to Wells Fargo, US Bank and many others. It's the banks you don't hear about on the news that are doing well.
Contrary to popular belief, many(most really) banks are doing just fine. The media just sees it fit to focus on the few that are not doing well. Remember, "If it bleeds, it leads".
HotRodzNKustoms 2:49PM (2/26/2009)
The only problem with bankruptcy for the automakers is the ignorance of the American car buying public for not understanding the difference between bankruptcy and going out of business. And in no way do I believe that a panel of these political appointees is the answer to their problems, because yes GM can give us a practical zero emissions cars but at the price tag they would have to charge nobody could buy one.
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