Washington  - General Motors Corp announced Friday that it will temporarily close plants and reduce production because of plunging car sales, one day after the US Senate rejected a massive bail-out package for the automotive industry.

General Motors will idle 30 per cent of its North American plants for the first quarter of 2009, citing a 36-per-cent drop in sales in November and a 41-per-cent decline in 2008 from the previous year.

"The speed and severity of the US auto market's decline has been unprecedented in recent weeks as consumers reel from the collapse of the financial markets and the resulting lack of credit for vehicle financing," the Detroit-based firm said in a statement.

The closures will results in a cut of 250,000 in the production of cars.

The House of Representatives on Wednesday approved a 14-billion dollar rescue plan on Wednesday, but the measure failed in the Senate, where Republican prevented Democrats from getting the 60 votes needed to end debate and go to a final vote. (dpa)