New York - Struggling Chrysler, forced into bankruptcy last week, had shut down all its North American car production by Monday morning.

Factories in Canada and the United States have been closed, a Chrysler spokesman said. Several supply companies had already shut down deliveries leading up to the shut-down.

Chrysler applied for protection and reorganization under the bankruptcy laws last week after the US government refused to give it any more bail-out money.

US President Barack Obama, who announced the bankruptcy, is hoping that Chrysler will emerge quickly from the process after 60 days so it can start up the factories again. According to Bloomberg financial news agency, Chrysler hopes to get its first green light in bankruptcy court on May 21.

During bankruptcy, Chrysler is to reduce its enormous debt load of more than 6 billion dollars and streamline its operations, which could mean some factories remain closed.

Italy's Fiat carmaker is riding to the rescue of the third largest US car maker with at least 20 per cent participation.

Fiat is also interested in buying General Motor's German daughter company Opel. Similar to the Chrysler face-off with the US government, GM faces possible bankruptcy on June 1 unless it can convince Washington it has become financially viable.