The closure is due to a severe sales slump, tight credit and urgent need to preserve cash.

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 US 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.