Some Congressional staff and some car company executives understand that pre-packaged bankruptcies of GM (GM) and Chrysler may be the only effective ways of saving the companies.

Though it is troubled by the financial crisis, U.S. auto giant Chrysler LLC has not stopped looking for new partners in China since its dropped out of Daimler AG's joint venture (BBDC) with Beijing Auto. However, Chrysler keeps its potential new Chinese partner(s) "highly confidential" for the moment, said sina.com today citing Chrylser's China sales unit.

Auto manufacturing giants in China, such as Shanghai Automotive Industry Corporation (SAIC) and Dongfeng Motor Corporation, may buy some assets of the two crisis-plagued American automakers General Motors and Chrysler LLC, Zhang Xiangmu, director of China's Ministry of Industry and Information Technology - the state regulator of China's auto industry - told reporters recently. Gasgoo reporters asked some sources to confirm the news today.

Under the sway of the global financial crisis, the U.S. auto giants General Motors and Chrysler LLC are tottering on the brink of collapse. Japan's Toyota Motor was previously rumored to buy them out, but now Chinese carmakers SAIC and Dongfeng are also said to have plans to acquire the two U.S. auto companies, reported the 21st Century Business Herald today.

U.S. lawmakers are considering ways to help America's struggling auto industry, which has suffered from rising fuel costs and the shrinking economy.

The vice president of Harbin Hafei Automobile Industry Group has left the company recently, less than one year after taking the job, the Beijing-based Jinghua newspaper reported today.

The biggest U.S. automaker says it will eliminate another 1,500 jobs because of sagging demand for new cars. Other top U.S. automakers Ford and Chrysler also announce layoffs.

Beijing Benz-DaimlerChrysler Automotive Co., Ltd. (BBDC) has postponed its first board meeting with new members to the end of this year to allow more time for distribution of assets, Chinese media the Economic Observer reported today.

Great Wall Motor is developing an A-class small car with Chrysler LLC, and the Chinese carmaker has commissioned a domestic auto design firm to create all-new car models, said 163.com today.

Beijing Benz-DaimlerChrysler Automotive Co., Ltd. (BBDC), a 50-50 joint venture between DaimlerChrysler and Beijing Automotive Industry Holding Co., Ltd, will hold its first board meeting with new members later this month, but no Chrysler members will attend the meeting, reported Jinghua newspaper.

Beijing Benz-DaimlerChrysler (BBDC) will continue to make the Chrysler 300C and Sebring models for Chrysler LLC, said the China office of Chrysler Asia to auto.sina.com.cn recently, in response to the earlier media report that Chrsyler is dropping out of Daimler's joint venture in Beijing.

As if investors needed another reason to weep on this unhappy expiration Friday, S&P decided it was as good a time as any to contemplate downgrading the US auto sector.