Chrysler and UAW officials successfully negotiated a tentative new labour contract that covers 45,000 workers, bringing about an end to the strike.

An independent retiree health care trust has been established within the new terms and protection of wages and pensions for workers and retirees was also established.

Other details of the agreement were not publically available.

UAW president Ron Gettelfinger said: “This agreement was made possible because UAW workers made it clear to Chrysler that we needed an agreement that rewards the contributions they have made to the success of this company.”

Ironically, strike action would have had a minimal effect on the company in the short-term due to the carmaker's decision to close many of its plants because of an over-supply of vehicles due to poor sales.

As of the end of September, Chrysler had a 71-day supply of vehicles in inventory and has already closed five of its ten plants in the US this week.

A further four plants are scheduled to be idle next week.

Prolonged strike action would have posed a greater threat to business, however, stopping production of vehicles such as the Jeep Wrangler, which remains in high demand.