Chrysler has responded with a statement to quell the media reports that name eight factories that are to be closed when its assets are transferred to the new entity speculation that has raged ever since it announced on Thursday that the bankruptcy process would see some disposals.

"As stated in our April 30 alliance announcement, as part of the alliance with Fiat, we are seeking bankruptcy court approval of the sale to a new alliance company of the substantial majority of Chrysler’s assets, operations and plants," read the statement issued by Chrysler in Auburn Hills, Michigan. With almost all Chrysler's plants and facilities in North America now set to idle for between 30 and 60 days as the bankruptcy process takes place, the question occupying the minds of many is identifying which of its assets will be part of the new company and which won't.

"Chrysler employees will be offered employment with the new company," the statement continued as the automaker tries to reassure staff. Last week the members of both the UAW union in the United States and the CAW union in Canada backed the proposals by an overwhelming majority. "The assets and liabilities that are not needed to support the business plan developed by Fiat and Chrysler for the new company will remain with the old company and move through the Chapter 11 process for disposition," the statement added. "A list of assets which have been identified for disposition was included in initial court filings," it continued without elaborating.

"An important point regarding employees is that, while some facilities may eventually close, none other than Newark and St Louis South are scheduled for closure in the near term," said Chrysler. "Virtually all labour associated with these facilities will be offered employment with the new company. In addition, as previously indicated, we expect that the alliance with Fiat will help to preserve and create in excess of 5,000 manufacturing jobs. It is premature to speculate on the ultimate disposition of those facilities that are to remain with Chrysler, e.g., sale as an operating asset to another company, sale to a new business, redevelopment, closure or other possible outcomes."

A report published by Automotive News today pegged the number of plants to close at eight. As well as St. Louis South and Newark, both in Delaware, and both of which have already stopped working, three components manufacturing factories: Detroit Axle and Twinsburg Stamping in Ohio as well as Kenosha Engine in Wisconsin are on the hit list. The newspaper also reported that Sterling Heights in Michigan, Conner Avenue in Detroit and St. Louis North in Delaware would also face the axe, ending Chrysler's representation in Missouri and reducing it dramatically in south east Michigan.