Troubled US automaker Chrysler has confirmed today (18th December) that it intends to suspend production at all 30 of its factories for at least a month.

The 'Big Three' American manufacturers - completed by General Motors (GM) and Ford - were dismayed when a proposed $14 billion bailout was rejected in the Senate last week.

Now Chrysler has responded by announcing that it will be doubling the scheduled two-week holiday closure at its plants, meaning output will not recommence until 19th January at the earliest.

In addition, Chrysler may reopen merger talks with GM which originally broke down earlier this year, while parent company Cerberus Capital has reportedly admitted that it could sell part of its ownership.

The two automakers have claimed that they are in need of around $4 billion by January to address immediate cashflow concerns, but the White House has warned that they must make "concessions".

Press secretary Dana Perino said: "It's clear that the automakers are in a very fragile financial condition and they're taking steps to deal with it.

"We're aware of their financial situation and are considering possible policy options to provide assistance in an appropriate way. As we've said, a disorderly collapse of the auto industry should be avoided."

Meanwhile, Ford confirmed yesterday that it will be extending the two-week suspension of operations at ten of its plants for an extra week, commencing 5th January.

Source:

Chrysler plants close for a month (18/12/08)
http://news.bbc.co.uk/1/hi/business/7788954.stm

Chrysler, Ford extend holiday shutdowns to save cash (18/12/08)
http://www.usatoday.com/money/autos/2008-12-17-chrysler-plants_N.htm