GM Daewoo to shut down for two weeks

The South Korean unit of General Motors Corp today announced a two-week shutdown of its plants due to slow sales and said there may be further suspensions if the market worsens.     

GM Daewoo will suspend production from December 22 to January 4, said spokeswoman Lim Young-Mi, the first such shutdown since GM took over Daewoo in 2002.     

The firm said in a statement that it and all other car makers have been hit by the global economic slowdown. "As we review our outlook for exports and domestic volume we will adjust our production schedule in line with reduced vehicle demand."     

Lim said the company would consider further suspensions "if the market situation worsens" but added that there had been no decision on whether to delay the launch of new models.     

The firm has previously said it will debut its new Matiz mini car in Korea early next year, without giving a schedule for other launches.     

In October GM Daewoo reported that its auto sales declined 11.3% from a year earlier to 73,180.      General Motors and other US automakers are in dire straits because of the global slowdown.     

Its chief executive Rick Wagoner has said it needs to line up a federal aid package even before president-elect Barack Obama takes office in January.