starting here, including translation of German articles by dvx.

In the long run, we're all dead. John Maynard Keynes

More pics ofunsold cars here, as sales have collapsed by 40-50% in many markets over the past 6 months.

In the long run, we're all dead. John Maynard Keynes

Jerome, do you think it is possible that the major problem--or a major problem with the car companies, particularly G.M. is that they have essentially become banks, doing all kinds of lending, even beyond lending for car purchases.  I don't know anything about car manufacturing and financing in Europe, but do the European car companies also do lots of lending?  My sense is that this lending business has become the real significant business of the car companies here (because it was so damn lucrative for such a long time).  I wish someone would address this aspect of the automobile "manufacturers" crisis.  It would seem that the excursions into the financial realm is what has dragged the car companies over the edge (ooh, pun city).

If the financial side is what is dragging down the car companies, then they do "deserve" a bailout no less than their brethren at the (other) banks.  On the other hand, perhaps the laborers in the financial sector "deserve" the kind of benefits and respect that the unionized auto workers have earned for themselves.  Oh wait, the bank workers are not unionized.

Perhaps this crisis will lead to a resurgence of unions.  Now, that would be a a positive outcome of this dep, er--recession.

GM More Open to Bankruptcy
Car Maker Wants to Avoid Filing, but Sees Speedy, U.S.-Financed Plan as an Option

Top General Motors Corp. executives are more open to a speedy bankruptcy reorganization financed by the government, pushing aside earlier concern that such a move would scare away so many customers the company wouldn't survive, said a person familiar with the matter.

(...)

The increased threat of bankruptcy could prod bondholders into making concessions, since these investors are said to believe a bankruptcy reorganization could harm their holdings, according to a person familiar with their thinking.

GM Chief Executive Rick Wagoner told Congress and the White House in November and December that a Chapter 11 reorganization would spark a plunge in revenue from which the company wouldn't recover.

But after months of research, including analysis done by top bankruptcy advisers, the company has come to believe it could emerge from what is known as a prepackaged bankruptcy, said the person familiar with the matter.

Under a prepackaged bankruptcy, the various constituents -- unions, suppliers, bondholders -- would agree in advance to concessions. Prepackaged bankruptcies typically take just a few months to accomplish.

With a prepackaged bankruptcy, said the person familiar with the matter, "We'd have 60 days of havoc and chaos, but the view is, if it was supported by the government and supported by the constituents, included the bondholders, the VEBA [retiree health-care trust] was negotiated, labor was in, that...we would be able to manage it."

A bankruptcy of any sort could be far more effective than the type of out-of-court restructuring GM is undergoing. For instance, the company's entire debt load could be reworked, rather than a majority of it as it currently is trying to do, and the auto maker could circumvent state franchise laws that have long protected its dealers from GM's restructuring knife.

In the long run, we're all dead. John Maynard Keynes

i guess that "government bail-out" does not necessarily equate with "nationalization" or "receivership", but is the German minister recommending insolvency instead of nationalization (as well as any other kind of "government bail-out")?

FT.com / Europe - Opel should consider insolvency, German minister says

Opel, the troubled European unit of carmaker General Motors, should consider the option of insolvency rather than a government bail-out, a German minister said on Friday.

Truth unfolds in time through a communal process.

I think one important reason, why politicians are reluctant to help, is that Opel is so closely bound to GM. The fear is, that in the end most of financial help will end up in the pockets of the mother company. It is not against the car industry per se.

Der Amerikaner ist die Orchidee unter den Menschen
Volker Pispers

I've been following the bank bailout mess in the US closely. I've been trying to follow what is happening with them in Europe, but they are more diffuse there. I have seen people, including Krugman, express the opinion that the efforts in both places are similarly characterized by confusion and indecision. Would you agree with that? If you think that there is any fundamental differences, I'd be interested to know what you think they are.

What I would like to know is why GM doesn't send the excess Opel cars over to the U.S. At least that way they would have something to compete with Toyota.

For example, I have not heard anything in the discussions in Washington about regularizing the emissions and safety regulations between the U.S. and E.U...