Chrysler, DaimlerChrysler's US subsidiary which is expected to announce a 1bn euro loss in the second quarter, has told more than 100 of its North American-based suppliers that they face losing business with the company unless they cut prices.

As well as the carmaker's financial problems, the move reflects intense pressure on Detroit's carmakers to cut purchasing costs amid signs of weakening U.S. vehicle sales, the high cost of financing consumer incentives and ballooning pension and healthcare costs.