Car giant Ford plans to build its new Fiesta supermini for the US at a factory near Mexico City, in a blow to American car workers.

The United Auto Workers union in America reached a tentative four-year contract with Chrysler, six hours after going on strike.

The United Auto Workers union and Chrysler remained locked in negotiations this morning as workers in Detroit prepared for the picket lines.

A two-day strike by car workers across the US was set to end today after the United Auto Workers union said it had reached a tentative agreement with General Motors Corp.

Negotiators who bargained into the early hours were close to reaching a contract agreement to end a nationwide strike by 73,000 US car workers, two people who were briefed on the talks said today.

Ford Motor Company plans to expand buyout and early retirement offers to the company’s entire US hourly work force of 75,000 as part of a broader restructuring plan aimed at restoring the troubled No.2 American vehicle manufacturer to profitability.

The Dow Jones Industrial averages soared to a five-year high today.