Chrysler to suspend manufacturing

US car maker to halt production for one month amid slump in sales.

    Unions and politicians failed to agree on terms of a proposed $14bn bailout last week [GALLO/GETTY]

    Ford also said on Tuesday it would shut down 10 of its North American assembly plants for an extra week in January due to poor sales.

    Slumping sales

    US vehicle sales dropped 37 per cent in November amid a worsening economic crisis and General Motors and Chrysler are believed to be on the brink of collapse.

    A proposed $14bn government bailout collapsed in the senate last week after politicians and unions failed to agree on its terms and conditions.

    On Monday, the White House again warned that the US auto industry would have to make "concessions" to win a government bailout.

    Chrysler said it had informed the United Auto Workers union, employees and suppliers about its action.

    The company is privately owned, with 80.1 per cent owned by New York private investment firm Cerberus Capital Management LP.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Interactive: Coding like a girl

    Interactive: Coding like a girl

    What obstacles do young women in technology have to overcome to achieve their dreams? Play this retro game to find out.

    Heron Gate mass eviction: 'We never expected this in Canada'

    Hundreds face mass eviction in Canada's capital

    About 150 homes in one of Ottawa's most diverse and affordable communities are expected to be torn down in coming months

    I remember the day … I designed the Nigerian flag

    I remember the day … I designed the Nigerian flag

    In 1959, a year before Nigeria's independence, a 23-year-old student helped colour the country's identity.