GM Daewoo extends shutdown of some production lines

SEOUL, Jan. 2 (Yonhap) -- The South Korean unit of troubled U.S. auto giant
General Motors Corp. said Friday it will extend a shutdown of some of its
production lines amid a sharp slump in vehicle sales.
GM Daewoo Auto & Technology Co. will extend the shutdown at its No. 2 plant in
the city of Bupyeong, near Seoul, by Jan. 9 and its factory in the city of
Changwon, 398 kilometers southeast of Seoul, by Jan. 23, company officials said.
GM Daewoo had planned to idle the plants by Sunday.
Last month, the U.S. government approved a US$17.4 billion bailout fund for GM
and Chrysler LLC, but analysts say the two of Detroit's Big Three should undergo
painful restructuring in return for the bailout package.
Earlier in the day, GM Daewoo said its vehicles sales declined 8.1 percent to
880,723 units last year, marking its first annual contraction.
Last month, vehicle sales plunged 56 percent from a year ago, underscoring GM
Daewoo's bleak fortunes amid woes at its U.S. parent.
GM Daewoo is South Korea's third-largest carmaker after Hyundai Motor Co. and its
affiliate Kia Motors Corp.
In 2002, GM and its partners acquired a majority stake in Daewoo Motor Co., the
automobile unit of Daewoo Group, which collapsed under huge debts in the wake of
the 1997/98 Asian financial crisis.
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