Americans ponder if destiny still tied to GM

DALLAS (Reuters) - In 1953, then General Motors president Charles E. Wilson said, "For years I thought what was good for our country was good for General Motors and vice versa. The difference did not exist."

That statement was quickly boiled down to the arrogant- sounding but inaccurate quotation, "What's good for General Motors is good for America."

Those days seemed very far away on Friday as the U.S. government announced it would offer up to $17.4 billion in loans to prevent U.S. automakers from going bankrupt.

Public opinion polls suggest most Americans oppose such a bailout. A Washington Post/ABC survey this week found 55 percent were against a government rescue with 42 percent in favor. Three quarters said Detroit had brought the crisis upon itself through poor management decisions.

"What is good for them is no longer good for all of us. I don't think we are a durable goods economy anymore," said Bill Good, a Dallas area roofing contractor.

"Should we have given bailouts to the buggy and leather harness manufacturers when the auto industry started out? No, of course not."

Phoenix-area coffee shop worker Linda Page was also against the rescue package.

"They haven't been competitive for years. They've had ample opportunity to build hybrid cars, but they're just dinosaurs. We've got to stop bailing them out. This is supposed to be a capitalist country," she said.

The Post/ABC poll showed that 69 percent of Republicans opposed the rescue while 52 percent of Democrats supported it. Opposition was strongest in the South and West at around 60 percent while voters in the Midwest and Northeast were roughly equally split for and against.

STORIES HISTORY

The auto industry for much of the 20th century was at the heart of U.S. economic might. The "Big Three" of GM, Ford and Chrysler held an iconic position in the car-crazy nation.

Some fear their downfall symbolizes the end of U.S. global economic hegemony as the country sinks into a deep recession brought on by its worst financial crisis since the Great Depression of the 1930s.

Many Americans long ago switched their allegiance to foreign car companies.

"It's great news for anyone in the automotive industry, but I don't see how it affects me. I buy foreign cars, so I don't care much," said Ernie Perez as he pushed a snow blower outside GM's Detroit headquarters.

Other Americans said the Big Three remained a vital part of the country's fabric.

"This bailout is huge for Detroit, it's important for America and it's important for the whole world. The Big Three built this country and without them the economy would be in the tank," said Cindy Woods, a court clerk in downtown Detroit.

The companies themselves argued they are still vital with as many as one in 10 U.S. jobs dependent on the industry.

"It is good for America at this time," said Scott Gruwell, manager of Courtesy Chevrolet in Phoenix, who hoped the rescue would calm customer concerns about services and warranties.

"We don't have much of a choice right now. Without it I think things could get so much worse," said Dave Babler, a Kansas City-area financial adviser.

"The effects of not helping them out would be too widespread and there are so many people now who can't pay their bills... we are too close to a total meltdown," he said.

(Additional reporting by Carey Gillam in Kansas City, Tim Gaynor in Phoenix and Nick Carey in Detroit)

(Editing by Alan Elsner and Dan Whitcomb)