South Korea's Daewoo Motors is shut for a second day as a boycott by a major parts supplier is set to widen to include others who are together owed $700 million in unpaid bills.
Today, all of Daewoo's four plants in South Korea were closed, a Daewoo spokesman said. Daewoo is the third-largest automaker in South Korea.
"We are trying to end the dispute," he said. "We are in talks with creditors about shortening our payment period for suppliers".
Suppliers have demanded bills be paid within two weeks of deliveries versus the current four to five weeks. A compromise on the issue would be offered to suppliers before they meet on tomorrow at 10 a.m. local time to decide their next move.
A wider boycott looms as some 191 suppliers plan to discuss cutting off supplies in line with a move taken by top supplier Korea Delphi Automotive Systems on Wednesday.
The dispute with suppliers comes as General Motors prepares to launch a revived Daewoo under a joint venture later this year.