Consumer reactions to recent government moves toward U.S. automakers GM and Chrysler range from skeptical to supportive, based on Nielsen Online’s analysis of Internet consumer buzz.

The Obama Administration’s weekend request for GM CEO Rick Wagoner’s resignation is merely “symbolic” for some consumers, contributing to their belief that Wagoner is being made a “scapegoat.”

Despite the President’s assurances that the federal government has no intention of running an automotive company, consumers remain concerned about the future of American capitalism and what some perceive as a shift toward socialism. Yet, some consumers agree that the government has a right to take these actions given that automakers asked for government-backed bridge loans and taxpayer support.

These recent developments have created significant Internet buzz since March 30th, surpassing discussion levels from mid-February related to the submission of restructuring/viability plans from GM and Chrysler.

GM, Chrysler and Government Loan Situation Buzz (January 1 – March 30, 2009)

Given the skepticism toward the government’s involvement in Wagoner’s resignation, what do consumers think about the President’s announcement of a government-backed Warranty Commitment Program for domestic automakers to bolster consumer confidence? Nearly half of immediate consumer responses to the Warranty Commitment Program are negative, influenced heavily by concerns about government involvement in the automotive sector. Consumers do not trust the government’s ability to manage the program and fear this level of regulation erodes the basic principals of capitalism, a sentiment that overshadows the intended impact of the program.

Consumer Sentiment within Warranty Commitment Program Buzz

(Sample of 100 Comments from March 29-30, 2009)

Buzz has been rapidly evolving over the past few days. No doubt online consumers will continue to discuss unfolding events while the clock ticks for GM and Chrysler.

However, 20% of consumers do respond favorably to the warranty program, saying that it improves their perceptions of GM and Chrysler products or that the program accurately addresses a concern for prospective buyers. This includes prospective owners who say the program has a positive impact on their consideration to buy a GM or Chrysler product.

Topic Discussion within Warranty Commitment Program Buzz

(Sample of 100 Comments from March 29-30, 2009)

Buzz has been rapidly evolving over the past few days. No doubt online consumers will continue to discuss unfolding events while the clock ticks for GM and Chrysler.

*Scott Hamm also contributed to this analysis

In mid-November, following GM released its quarterly earnings report – which highlighted the gravity of the Big Three Automakers’ financial situation, and online consumers began comparing the potential auto bailout to the U.S. government’s bailout of the financial industry or the Chapter 11 benefits/consequences of the airline industry.

Around November 21, the first Congressional bailout hearings spurred consumers’ opinions across the Internet.  Many questioned how the domestic OEMs will be held accountable for using bailout funds.  Others heavily criticized the Big Three Auto CEOs for flying corporate jets to the hearings.

In non-bailout related blog discussions, online consumers expressed enthusiasm about potential future Toyota hybrid models, such as a sport coupe version of the Prius or a Lexus-only hybrid compact.

Online consumers were also abuzz during the L.A. Auto Show, with many expressing interest in alternative fuels and new versions of vehicles, such as the Ford Fusion and Mustang, Lexus RX, Mazda 3, Nissan 370Z, and Cube.

View the complete “Automotive Industry Overview” for November 2008.

Stay tuned on Nielsen Wire for monthly installments of Nielsen Online’s monthly “Automotive Industry Overview” of online, consumer-driven automotive discussions.

Through July 2008, the Big Three American car manufacturers (GM, Ford, and Chrysler) all showed negative advertising growth over 2007, according to Nielsen Monitor-Plus. Ford and Chrysler each spent 22% less on advertising, while GM dropped its spending by 6%.

Compare that with the relative success of foreign automakers. Honda added the most spending in dollars over 2007 (an extra $71.5 million, or 13%), while Daimler (48%) and Volkswagen (23%) showed the most growth percentage-wise.

But not all foreign automakers saw the same success. Hyundai’s spending dropped by 17%, Nissan’s fell 15%, and Toyota’s numbers remained unchanged. The numbers reflect a 10% dip in ad spending across the entire auto industry through July.

So, for the money that has been spent, where has it gone? Of the total $6 billion spent on car and truck ads, more than $5 billion (83%) were placed in television, while $640 million (11%) were placed in magazines

There were some notable declines in media spending this year. Television is down $323.7 million (-6% compared to last year); budgets for magazines (national, local, and B-to-B) were cut $187.3 million (-23%); and newspapers (national, local, and supplements) dropped $58.8 million (-25%). These significant losses contributed to the overall loss of $640 million, bringing advertising for the automotive category down 11% for the first seven months of this year.

Cable television reported a 5% increase in total spend for the Jan-July time period with $881.9 million in total spend. Another bright star in automotive ad spend is Spanish-language cable television, gaining $1.8 million. Finally, spending in local magazines also climbed, showing the largest increase of 23%.

An analysis of auto-related blog discussions released Tuesday by Nielsen Online found online buzz in October spiked around BMW’s X1 Concept, Lexus’s IS 250C, and Acura’s first V8 engine.

The “Meet the Beckers” series and content from the Lexus L-Studio site were the top consumer-cited videos for October.

Among more sober blog discussions, buzz about a potential GM/Chrysler merger was most prevalent. Consumers speculated about which models might be discontinued and the prospect of job cuts. Many also voiced opposition to funding the merger with a government loan.

In contrast, Porsche’s increased stake in Volkswagen generated far less online buzz. Most consumers who blogged about that merger described it as a good business move.

View the complete “Automotive Industry Overview” for October 2008.

Stay tuned on Nielsen Wire for monthly installments of Nielsen Online’s monthly “Automotive Industry Overview” of online, consumer-driven automotive discussions.

Among credit card services companies, TV ad units for Sept. 1 – 21, 2008 were down by almost 24% versus the same time period last year.

Most of the top advertisers in the Credit Card Services category — including Capital One, Discover, Synovus, Washington Mutual, and Visa — reduced their TV television advertising activity in September.

Earlier in 2008, advertising by credit card services companies had shown increases.  In July and August, ad spending for the category was up by almost 27% over the same period a year ago.

Ad spending by other sectors of the financial services industry has declined steadily so far this year. 

In July and August, ad spending by mortgage service companies was down by almost 54%, compared to the same period in 2007.  Ad spending by loan companies also dropped by almost 37% between July-August 2007 and July-August 2008.

Read coverage of Nielsen’s findings by the Associated Press and in Ad Age, the Los Angeles Times, The Globe and Mail, Broadcasting & Cable, and Adweek.

During the 2pm to 3pm (EST) daypart on Monday, the combined audiences for CNN, CNBC, FOX News, and MSNBC jumped by 71% over the average daily audience for that daypart between Sept. 1 and Sept. 28, according to Nielsen.  The 3pm to 4pm daypart saw an even larger jump (103%) over the average audience for the prior portion of September. 

CNN, CNBC, FOX NEWS, and MSNBC’s combined audience spiked at almost 7.1 million viewers during the 5pm to 6pm hour — an 84% increase over that daypart’s average daily audience for Sept. 1 through Sept. 28.

Also surging on Monday: blog discussions with the terms “wall street” and “bailout.”  Overall, nearly 2% of all blog posts on Sept. 29 mentioned the term “bailout.”

Meanwhile, traffic to online brokerage websites was up by 30% between September 15 and 21 — the week that AIG and Lehman Brothers collapsed, according to Nielsen data released Tuesday.

Unique visitors to online trading sites increased from a weekly average of 9.2 million during the previous seven weeks (July 28 – September 14) to nearly 12 million during the week ending September 21. 

ShareBuilder.com, Scottrade.com, and Merrill Lynch’s corporate website traffic also jumped between September 15 and 21 — by 217%, 104%, and 128%, respectively.

The total number of people accessing the Internet remained stable during that time period.

View the full press release.

Read coverage of Nielsen’s findings in The Baltimore Sun.

As a comparison, TV ratings for selected major news events throughout the past two decades are included below.

View the full media alert.

Read coverage of Nielsen’s findings in TV Week.