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 30^th, 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)

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

The volatility in the real estate market is concerning, nay alarming, across the board from home-buyers, to lenders, to builders. Moreover, the recent upward trend in home foreclosures has compelled President Bush and the Congress to pass the Housing Bill, which comes as a huge respite to hundreds of thousands of homeowners on the brink of foreclosures and to mortgage lenders who bet heavily on sub-prime mortgages, especially two giants in the game - Fannie Mae and Freddie Mac, now with books full of bad mortgages.

We looked at the trend in visitation across all Web sites within the Real Estate category and mapped it with the movement of the Case-Schiller Home Price Composite-20 Index. While the average price/value of a home in the US has been decreasing since the summer of 2006 (down more than 36 points), we see a significant growth in unique visitors (>11 million) to sites within this category during the same period. With the downward turn in home sales, it is likely that current homeowners may be visiting real estate sites to check their home’s value, keep tabs on interest rates, and keep abreast of other relevant information. Moreover, it is also possible that potential home buyers may be increasingly on the lookout for affordable homes.

The most traffic has been across a few key sites. Realtor.com has historically had the highest number of visitors and continues to do so. Yahoo! Real Estate and MSN Real Estate sites have seen some steady growth in visitors since 2005, while Yahoo! Real Estate has had a sharp rise in visitors since early 2007. Overall, AOL Real Estate has seen a decline in visitors.

While the number of visitors to real estate portals is on the rise, there has been a steep decline in advertising in the “Financial Services, Lender and Home Equity” category since December 2007, as reported by AdRelevance. For instance, in January of 2008, Countrywide Loans was the top advertiser delivering close to 6 billion impressions online, but since February it has maintained fewer than one billion impressions online. Other top contenders in the category (Citi Mortgage, GMAC Mortgage, Bank of America, Wachovia, etc.) have either completely withdrawn or drastically reduced their online advertising in this category, though the category experienced a slight up-tick in July.

It seems like online research content and news sites are drawing a steadily growing audience, but the advertisers are taking a step back with their investments in online advertising. Stay tuned for how the year winds up!