Daewoo Motor South Korean suppliers, seeking over one trillion won ($US833.3 million) in overdue payments, said on Monday they planned to halt automotive parts supply beginning on Thursday, according to Reuters.
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The 191 parts suppliers to South Korea’s third-largest automaker reached the decision at a meeting on Monday, Cho Hang-kyun, a representative of the suppliers, told Reuters.
After General Motors agreed in April to invest $251 million in a joint venture with Daewoo’s creditors, it also agreed to provide up to $250 million in support payments to Daewoo’s parts suppliers, Reuters said.
But with payment delayed in recent weeks, many parts suppliers have complained of worsening financial conditions, Reuters added.
