Chrysler to close all plants in North America

Special Report:Global Financial Crisis

CHICAGO, Dec. 17 (Chinese media) -- Chrysler LLC has decided

to close all its North American manufacturing operations for at least 30 days,

according to reports reaching here from Detroit.

The closure is due to a severe sales slump, tight

credit and urgent need to preserve cash.

A Chrysler sign is seen on the front of

Chrysler's Detroit Axle Plant in Detroit, Michigan December 12,

2008.(Chinese media/Reuters File Photo)
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Chrysler's US sales have slumped 28 percent this year

-- the biggest drop among major automakers. And the outlook for industry sales

in 2009 remains weak in the wake of the ongoing recession.

The company recently cut 5,000 white-collar jobs as

part of ongoing restructuring moves, and is in negotiations with the Bush

administration to secure billions of dollars in federal loans to stay afloat and

avoid bankruptcy. The company warned Congress earlier this month it was running

dangerously low on cash and may not be able to pay its bills after Jan. 1, 2009.

Operations at the 30 factories -- including assembly,

engine and transmission plants -- will be idled at the end of production shifts

on Friday and will not come back up until Jan. 19, 2009, or later.

The U.S. House of Representatives last

week approved a 14-billion-dollar bailout package for the country's struggling

auto industry, but the bill later failed to pass the

Senate.

Bush says to bailout auto makers

soon


WASHINGTON, Dec. 15

(Chinese media) -- U.S. President George W. Bush said on Monday that short-term

government help for the auto makers was in the works and could come soon.

"We're now in the process of working through with the

stakeholders a way forward, and we're not quite ready to announce that yet,"

Bush said on his way back to Washington after visits to Iraq and Afghanistan.

U.S. Treasury ready to save automakers

after bailout bill fails



WASHINGTON, Dec. 12 (Chinese media) -- The U.S. Treasury said Friday it is ready to

save the country's crippled auto industry from bankruptcy after Congress

rejected an auto bailout bill hours earlier.

"Because Congress failed to act, we will stand ready to

prevent an imminent failure until Congress reconvenes and acts to address the

long-term viability of the industry," Treasury spokeswoman Brookly McLaughlin

told reporters.

U.S. Big-3 automakers to shut down temporarily in

Canada

OTTAWA, Dec. 12 (Chinese media) -- All

the Canadian plants of the U.S.Big-3 automakers will shut down temporarily in

January, the president of the Canadian Auto Workers union said on Friday.

The plants will be closed for different periods of time through

December and January, said Ken Lewenza, adding the temporary layoffs are "a

result of declining sales in the United States."

General Motors has 12,574 active workers in Canada, Chrysler LLC

has 7,865 and Ford Motor Co. has 7,402. Full story

U.S. auto loan package dies in Senate

WASHINGTON, Dec. 11 (Chinese media) -- A 14-billion-dollar loan

package aimed at bailing out the American auto industry from bankruptcy

officially died on Thursday night, as it was rejected by the U.S. Senate despite

the Wednesday approval by the House of Representatives.

A procedural vote conducted in Senate ended up with only

52 yeas, formally strangling the legislation, whose passage needs 60 supporting

votes. Full story