GM Daewoo closes all plants in S. Korea

SEOUL, Dec. 22 (Yonhap) -- The South Korean unit of troubled U.S. auto giant
General Motors Corp. shut down all of its three plants here in response to a
sharp drop in vehicle demand worldwide, company officials said Monday.

Production at GM Daewoo Auto & Technology, the third-largest carmaker in South
Korea, will cease until Jan. 4, officials said, hinting the company may extend
the shutdown at some of its production lines early next year.
It was the first such shutdown since Detroit-based GM took over Daewoo Motor Co.
in 2002.
Since early November, GM Daewoo has cut work hours and suspended some production
lines to save costs.
Last week, the U.S. administration offered US$17.4 billion in rescue loans for GM
and Chrysler LLC, averting a much-feared bankruptcy for two of Detroit's Big
Three carmakers.
However, analysts says GM and Chrysler is facing many obstacles from now because
the bailout requires them to endure painful steps such as huge job cuts and other
restructuring plans.
Some local analysts say GM Daewoo may be put up for sale if GM files for
bankruptcy.
Last month, GM Daewoo saw its vehicle sales plunge 28.8 percent from a year
earlier to 62,256 vehicles.
In the first 11 months of this year, GM Daewoo's sales declined 3.2 percent to
841,521 units.
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