New GM Poll: Most Americans Support an Auto Industry Bailout
Poll results released by General Motors today clearly indicate that the majority of Americans think the government should provide bailout loans to the auto industry and that without those loans the “Big 3″ (GM, Ford, and Chrysler) will go bankrupt.
In a random survey of 804 American adults conducted by Peter D. Hart Research Associates and commissioned by General Motors (PDF), there is broad support for bailing out the the American auto industry — and even broader support of President-elect Obama’s plans to make sure “the American automobile industry continues to be able to operate.”
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Some key findings:
- 55% of people surveyed said that the government should intervene and help the Auto Industry with loans. Only 30% said the government shouldn’t intervene, and 15% were unsure.
- Interestingly enough, when the question was “Do you agree with Obama’s plans to provide economic assistance to the auto industry?”, the number agreeing rose to 64%.
- 60% of Americans believe that without help, the auto industry will go bankrupt.
- 55% of Americans think that providing bailout money to the auto industry is “just as important” as providing it to the banks.
- Most people agree that the manufacturing base provided by the US auto industry is key to the US’s national security.
The survey also finds that the majority of Americans think that if the Big 3 were to go bankrupt, the US economy would likely fall into a depression.
Well, this is an amazingly sore topic with many of our readers, but I’m wondering what your reactions to this are? Are you one of the silent minority that feels we should just take our lumps and pony up to rescue the industry? If we do, do you think we should attach conditions on to that money? Should we force the auto industry to start making more plug-in, clean diesel or CNG vehicles?
Or do you think we should let them go bankrupt so that a new era of auto manufacturers can take over? Come on folks, if you’re an American it’s your money. So you’re vested in this decision whether you want to be or not.
Source: GMfactsandfiction.com
Image Credit: Photo Mojo’s Flickr Photostream under a Creative Commons License
I think it’s important for us to avoid getting caught up in a classic systems archetype of ‘fixes that fail’ and instead cut out the source of the problem– the manufacturing and sales paradigm of the combustion engine. The Big 3 have too many factories, too many supply chain networks and have to stop only making money when they sell a new car. It’s time to leapfrog into electric motors powered by combination of batteries, fuel cells and capacitors.
While Execs often dismiss new platforms and worry about being too early, recent bets on energy storage systems to be made in Asia suggest that we might be close to being too late.
Some related articles that look at recent changes:
http://www.theenergyroadmap.com/futureblogger
/show/1272-the-future-of-the-us-auto-industry
Nice to see the post on the survey though!!! Thanks!
Garry G
Editor
The Energy Roadmap.com
This just in 72% of anonymous posters feel that the government should bail them out…
You are joking right? valid? I highly doubt it. What was the sample taken from, and where? did it take place in Detroit and other cities that host auto making facilities? Were the ‘random’ samples in any way affiliated with automakers or contracts that make items for same? Did any of them have CEO after their names??
I think this is a bit on the shady side…
Unless we’re prepared to carry the Big 3 forever, we shouldn’t start. If we give in, the line of businesses that will queue up for bail-outs, all with their own sob stories (e.g. circuit city), will stretch from coast to coast.
Don’t equate chapter 11 with “going under”. United Air has been in and out of chapter 11 for years. I flew with them 2 weeks ago. Seemed like business as usual to me except that they had the best schedule and lowest fare!
American enterprise (best in the world) is built on creative destruction. Time to block our ears and hold tight to our wallets! The bank bail-out has already given away 10% of our wealth.
Sounds like they asked SoCal Edison how to rig a poll, but lets put things in perspective:
According to Forbes:
Labor cost per hour, wages and benefits for hourly workers, 2006.
Ford: $70.51 ($141,020 per year)
GM: $73.26 ($146,520 per year)
Chrysler: $75.86 ($151,720 per year)
Toyota, Honda, Nissan (in U.S.): $48.00 ($96,000 per year)
According to AAUP and IES, the average annual compensation for a college professor in 2006 was $92,973 (average salary nationally of $73,207 + 27% benefits).
Bottom Line: The average UAW worker with a high school degree earns 57.6% more compensation than the average university professor with a Ph.D. (see graph above, click to enlarge), and 52.6% more than the average worker at Toyota, Honda or Nissan.
the workers are overpaid. it was recognized back in 2006 that GM would not be able to compete with the other car makers due to their high overhead. They have been losing market share for the last 20 years and have finally hit the point where they cant continue.The downturn in the economy didnt do any more than reduce their capability to borrow money to hide the problem, the problem still exists that they build the wrong cars and their workers do not care about their survival.
You’re numbers are little funny and probably include employer payroll and ss tax.
But its moot anyway. A Chinese worker will get $10/day. There isn’t anyone here who’s overpaid. So, let’s move all industry there now because no one will ever compete with sweatshop wages.
I suspect you’re overpaid too. Lets issue some visas and take care of your inflated wage, ASAP.
Should be: “There isn’t anyone here who’s *not* overpaid”
I have voted Republican my entire life, but seeing the Republicans trying to stop the bailout of GM,Ford, and Chrysler shows me I have been voting wrong. If the Replicans do not vote to pass the bailout of Gm, Ford, and Chrysler I will vote Democratic for now on. Each manufacturing job creates at least 5 more service related jobs for Americans.
William,
Go ahead and give your paycheck and vote to a bunch of over paid socialists.
jpm100,
That is one of the most childish and ignorant response to a logical and well documented argument I have seen in years. Anyone with a lick of common sense knows that UAW is a lead balloon and it will take the Big 3 under if they don’t cut the string. The fact that a dinosaur like the UAW still exists shows just how messed up the American business model is right now. We would rather prop up old poorly run businesses than force them to change and be productive. Any bailout that does not force the Big 3 to reorganize and cut ties with the UAW should be voted down with prejudice. If they want to compete in the global economy than they need to prove it.
I blame 90% of this on the UNIONS. Their are required minimum pay with required pay rate increases which far exceed the national average. Their insurance and pensions are fare superior to the national average. Most companies have dumped pensions, however union controlled plans are untouchable. Another item of note is 50% of the cost of a new vehicle pays for the union required insurance, pensions, and corporate overhead including dealer kick backs. Please research non union auto companies and you will see that they are very stable with no financial problems. Fellow Americans, please wake up and remove the Iron Curtain the Unions have placed before you.
Doug, I may be childish, but I’m not foolish.
Foolish is believing that you are compartmentalized economically from the people around you. Especially true if you’re a College Professor.
There’s no reason that if higher than your competitor’s wages means you go out of business, China will not get everything eventually. The exceptions being agriculture and mining. What does a Professor’s wage look like in a country full of farmers.
If you’re ticked at Union conduct, then you should have been calling for the government to give the companies the tools to bust the union. I’m wondering how many people calling their representatives and being vocal about letting GM go down because of the unions did likewise to anywhere close to the same degree calling for the weakening of unions?