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SEOUL, Jan 9 (Reuters) - Hyundai Motor Co (005380.KS: Quote, Profile, Research), South Korea's top automaker, said on Friday it plans to cut production at its domestic plants by 25-30 percent to offset a slump in demand.
The plan comes just hours after smaller local rival Ssangyong Motor Co (003620.KS: Quote, Profile, Research) said it was seeking court bankruptcy protection as the financial crisis further pounded the worldwide car makers.
"We decided to reduce production by 25-30 percent at all of our domestic factories, except two lines for small cars, in the first quarter," Jake Jang , a Hyundai spokesman, told Reuters by telephone.
The company had proposed the plan to its labour union, and production plans would be further adjusted to meet future market demand, Jang added.
Automakers around the world face their worst business environment in recent memory, caught in a sharp reversal of demand as the financial crisis squeezes credit and dents consumer confidence.
In December, combined sales of South Korean automakers fell 13 percent in December, adding to concerns over the ripples of a spreading global recession on demand for cars. Hyundai's sales fell 2.4 percent.
Shares in Hyundai ended down 2.5 percent before the announcement, underperforming a 2.1 percent fall in the wider market.
The plan comes just hours after smaller local rival Ssangyong Motor Co (003620.KS: Quote, Profile, Research) said it was seeking court bankruptcy protection as the financial crisis further pounded the worldwide car makers.
"We decided to reduce production by 25-30 percent at all of our domestic factories, except two lines for small cars, in the first quarter," Jake Jang , a Hyundai spokesman, told Reuters by telephone.
The company had proposed the plan to its labour union, and production plans would be further adjusted to meet future market demand, Jang added.
Automakers around the world face their worst business environment in recent memory, caught in a sharp reversal of demand as the financial crisis squeezes credit and dents consumer confidence.
In December, combined sales of South Korean automakers fell 13 percent in December, adding to concerns over the ripples of a spreading global recession on demand for cars. Hyundai's sales fell 2.4 percent.
Shares in Hyundai ended down 2.5 percent before the announcement, underperforming a 2.1 percent fall in the wider market.
