Breaking News : Chrysler ‘to file for bankruptcy’

Chrysler is to enter bankruptcy protection after failing to persuade a number of hedge funds to write off its debts, a White House official has said.

President Barack Obama is due to make a statement shortly on the future of the struggling US car maker.

The news comes as Chrysler has been in last minute talks to restructure the business before a midnight deadline.

President Obama has already said that Chrysler would emerge stronger after any move into bankruptcy protection.