New York  - As Chrysler formally applied Thursday for bankruptcy protection and reorganization at a New York court, the company said it would close down production during the process.

Assembly lines will fall silent on Monday, the company said in a statement.

Production will only return to normal when the bankruptcy process if finished.

Under a rushed process announced earlier by US President Barack Obama, Chrysler is to emerge from bankruptcy within 30 to 60 days, with the help of additional bail-out money from the government.

The new partner for the country's third-largest car maker is to be Italy's Fiat.