Lack of Parts Shuts Daewoo Car Plants

All three car plants of Daewoo Motor Co. suspended operation after the company’s largest supplier stopped shipping parts to protest delays in payments.

The suspension, if prolonged, could disrupt General Motors Corp.’s agreement to take over the South Korean company’s passenger-car assets, company officials said.

Korea Delphi Automotive System Corp., which makes air conditioners and steering and other equipment for Daewoo, stopped supplies Tuesday.

Korea Delphi accounts for 20% of Daewoo’s parts supplies from outside firms.

Separately, an association of 191 parts suppliers for Daewoo Motor has threatened to stop supplies Thursday to protest overdue bills.

In April, GM agreed to set up a new joint venture with investors and Daewoo’s creditors to take over the South Korean firm’s key passenger car assets.

GM and Daewoo hoped to launch the joint venture in early October.