Discussions about a possible alliance among General Motors (GM), Nissan and Renault have ignited sparks among union leaders and elected officials in Michigan and cast a renewed focus on the state of America’s auto industry. The talks come at a time when 48% of Americans have a favorable opinion of General Motors. A Rasmussen Reports survey found that 21% have an unfavorable opinion of the company.

When asked about a General Motors merger with a foreign automaker, 39% believe it would help the help the quality of GM products, 28% think it would hurt and 16% say there would be no impact on quality.

There was a time when “buying American” was a way of life and many believed that supporting American jobs was one’s patriotic duty. Today, nearly half of all American adults (48%) believe that foreign-made cars are better than American-made cars. Thirty-nine percent (39%) favor American-made cars.

On top of that, there is a general level of comfort with foreign investment in U.S. companies. Forty-four percent (44%) of American adults believe it is good when foreign companies invest in American companies compared to one-third of respondents (33%) who see foreign investment as a bad move. Only 7% see foreign investment as having no measurable impact while 16% are not sure.

Among those who own a GM vehicle, 70% have favorable opinion of the company and 54% say American are cars better than their foreign counterparts. In this group, opinions are fairly evenly split on the question of a merger’s impact; 38% say merger would help GM quality and 35% say it would hurt.

It’s interesting to note that General Motors, which can trace its roots back to the America of the late 1800’s, fails to register as deep of an impression with the public when compared to another corporate American powerhouse: Walmart (WMT). Results from a June Rasmussen Reports survey show Walmart drawing favorable ratings from 69% of respondents, a 21-point edge over the veteran auto company.

General Motors Corp. said Wednesday it lost $3.2 billion in the second quarter as it absorbed heavy charges for its massive restructuring program. But the world's largest automaker reported an operating profit that handily beat Wall Street estimates and its sales surged 12%.

Investors sent GM shares up nearly 5% in premarket trading.

The loss of $5.62 per share in the April-June period compared with a loss of $987 million, or $1.75 per share, for the same period last year.

Without the one-time charges, GM's operating earnings were $1.2 billion, or $2.03 per share. That was significantly ahead of the 55 cents per share forecast by analysts polled by Thomson Financial.

Revenue climbed to $54.4 billion, compared with $48.5 billion in the second quarter of 2005.

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