Carmaker DaimlerChrysler is widely predicted to be on the verge of announcing up to 10,000 job cuts at its loss-making US Chrysler unit.
DaimlerChrysler is to cut 13,000 jobs at its loss-making US unit Chrysler.
The German-US group is due to unveil details of its latest restructuring plan for Chrysler and is likely to shut at least two North American plants.
The German-US group also said it will close one Chrysler factory as it continues efforts to turn around the struggling US operation.
Struggling against falling sales and losses, Chrysler currently has a total workforce of 83,000 people.
Hit by falling sales, which were down 7% in the US last year, Chrysler has a total workforce of 83,000 people.
Its restructuring announcement is due later on Wednesday or Thursday.
Like fellow "Big Three" US carmakers Ford and General Motors, Chrysler has been hit by tough competition from Japanese rivals.
Analysts say DaimlerChrysler wishes to cut costs at Chrysler by $1,000 (£511) per car, or by more than $2bn in total.
Losses at Chrysler totalled $1.5bn between July and September last year, and its US sales for the whole of 2006 slid 7%.
Tough competition
The Chrysler plant most likely to close is said to be its factory in Newark, Delaware.
CHRYSLER FACTS 83,000 workers14 main assembly plants in US and CanadaUS sales down 7% in 2006Quarterly losses of $1.5bnOther brands - Dodge and Jeep
With a workforce of 2,100, this makes the firm's slow-selling Dodge Durango and Chrysler Aspen sports utility vehicle (SUV) models.
Other factories said to be at risk are its Mack Avenue Engine Plant, in Detroit, and a facility in St Louis that makes Ram pick-ups.
Like fellow "Big Three" US carmakers Ford and General Motors, Chrysler has been hit by tough competition in its key home market from Japanese rivals.
All three have also been knocked by an over-reliance on thirsty pick-ups and SUVs at a time when more American drivers are switching to smaller more economical cars.
All three have also been knocked by an over-reliance on thirsty pick-ups and SUVs at a time when more American drivers are switching to smaller more economical cars.
In the face of higher petrol prices, Japanese firms such as Honda and Toyota have been quicker to produce a range of such models.
In the face of higher petrol prices, Japanese firms such as Honda and Toyota have been quicker to produce a range of such models.
DaimlerChrysler, the world's fifth-largest carmaker, is also due to unveil its full 2006 financial results.
DaimlerChrysler, the world's fifth-largest carmaker, is also due to unveil its full 2006 financial results.
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