Ottawa/New York - After filing for bankruptcy, ailing US car maker Chrysler has halted production at its Canadian plants, according to reports Saturday. Canadian media reported that the two Chrysler plants would remain closed "until further notice," according to the company. The decision affects around 7,000 workers.

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

Assembly lines were due to fall silent on Monday, the company said in a statement. Chrysler chief executive Bob Nardelli is to oversee the bankruptcy but be out of a job once the process is completed, as part of an effective takeover by Italian carmaker Fiat and a major shake-up of the company's executive board.

The White House had stressed that there would be no plant closures or layoffs during the bankruptcy proceedings.

Chrysler plans a so-called 363 sale under which the company would shift all of its assets into a new, debt-free firm, which would keep the name Chrysler.

Fiat would take a 20-per-cent stake in that new company. That stake could be expanded by another 15 per cent as it transfers technology and other incentives to Chrysler's factories. A union retiree health care trust fund would own 55 per cent of the emerged company.

The US government is to keep an 8-per-cent stake in Chrysler. Canada, which is also offering emergency loans, would get 2 per cent while Fiat could potentially take over the government's stake - giving it a majority - once all loans are paid back.

Chrysler, the third-largest US car maker, owes more than creditors some 6.9 billion dollars.(dpa)