SEOUL - SOUTH Korean carmakers are offering discounts to cut stockpiles or suspending production as they and their global counterparts face a dismal winter.

Local leader Hyundai Motor last week stopped overtime and weekend work until the end of December, despite its respectable showing so far this year.

Hyundai and its affiliate Kia Motors, which together account for 70 per cent of domestic car sales, are offering discounts to reduce vehicle stockpiles.

The local unit of US auto giant General Motors on Tuesday announced a one-month shutdown of its main plant at Bupyeong from December 1 to January 4.

It will be the first such shutdown since GM took over Daewoo in 2002.

The Bupyeong factory produces Tosca sedans, Windstorm sport-utility vehicles and compact cars for the local market. It also exports the same models to Asia and Europe under the GM brand.

Production at GM Daewoo's other plants will be suspended for two weeks from December 22 to January 4, as earlier announced.

In October GM Daewoo reported that its auto sales declined 11.3 pe rcent from a year earlier to 73,180.

SsangYong Motor, which is owned by China's Shanghai Automotive Industry Corporation, said it has been in talks with its union about a possible suspension of production next month.

The local unit of French automaker Renault said last week it plans to cut jobs through an early retirement programme as part of the parent company's move to reduce costs.

The Korea Automobile Manufacturers Association said it was drawing up a list of proposals for regulatory changes to boost the industry.

Carmakers have asked the government to cut taxes on small cars, scrap environmental protection charges on diesel vehicles, and help promote sales through installment purchase plans.

They also want the government to provide more research and development support for energy-efficient hybrid vehicles. -- AFP