Automaker Ssangyong suspends production over financial woes

Seoul - Cash-strapped South Korean carmaker Ssangyong Motor Co on Tuesday halted production for an unspecified period as its suppliers cut deliveries.

Production was stoped at its vehicle and motor plants at Pyongtaek, about 60 kilometres south of Seoul, the company said.

Several component suppliers halted deliveries, fearing that the SUV maker would not pay its bills after a court on Monday froze Ssangyong's debts, assets and obligations.

Ssangyong, the smallest of South Korea's five carmakers, on Friday filed for bankruptcy protection, and a court decision is still outstanding. If rejected, the company, which is 51 per cent owned by China's Shanghai Automotive Industry (SAIC), faces breakup.

Sales plunged in 2008 by 30 per cent, as demand nosedived following the global financial meltdown. (dpa)

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