Fri, 06 Sep 2002

Daewoo car plants remain idle

SEOUL, South Korea: All three car plants of Daewoo Motor Co. remained idle for a ninth straight day after one of its largest parts suppliers stopped shipment to protest overdue payments, the company said Thursday.

Company officials were concerned that a prolonged suspension could delay General Motors Corp.'s agreement to take over Daewoo's passenger car assets. Daewoo was declared bankrupt last year.

Korea Delphi Automotive System Corp., which accounts for 20 percent of Daewoo's parts from outside, stopped shipment Tuesday last week to protest unpaid bills totaling 20 billion won (US$16.7 million).

Delphi, which makes air conditioners, steering gear and other key auto parts, said it cannot operate because of a cash crunch worsened by the overdue payments.

An association of 191 parts suppliers, which halted supplies last week, said Wednesday that they would resume shipment. --AP