SEOUL - South Korea's top automaker Hyundai Motor Co. said on Tuesday it was counting on a local expert to revive its flagging fortunes in the United States after its North American chief stepped down after less than a year.

Hyundai, the world's No.5 car maker along with its affiliate Kia Motors Corp , also said it was easing back production and considering further options to deal with falling demand at home and abroad.

"We aim to bolster sales in the tough U.S. market, which has been rapidly changing, with an appointment of a local expert as CEO," said Jake Jang, a Hyundai spokesman.

On Monday, Hyundai named John Krafcik, Hyundai North America's vice president of product development and strategic planning, as acting chief executive to succeed Kim Jong-eun, who had only been in the position since December 2007.

The company has been scrutinized over its weak record for retaining executives in North America, which accounts for a fifth of its global sales. Kim is the third chief executive for Hyundai North America to be replaced in two years.

Hyundai also stopped overtime work during weekends from last weekend at some local production lines for its sport utility vehicles (SUVs) including its flagship Santa Fe, officials said, while Kia also took similar steps for domestic SUV manufacturing.

"We are considering various options such as production adjustments to cope with weakening global demand," Jang said.

The move comes as global auto makers are fighting against the worst economic slowdown in decades, with General Motors Corp warning it will soon run short of cash and asking the U.S. government for financial support.

Auto sales have lagged in traditional markets such as the United States, Europe and even once-promising regions like China and India.

FALTERING DEMAND

GM Daewoo Auto & Technology Co is also considering further production halts after the GM's South Korean unit already decided to suspend all of car production for about two weeks from Dec. 22 and to turn off a production line for SUVs and a mid-sized sedans for the whole of next month, company officials said.

Renault Samsung Motors Co Ltd, the South Korean unit of French car maker Renault SA , has also suspended overtime works since November and was mulling voluntary retirement plans, a company spokesman said.

Ssangyong Motor Co , owned by China's SAIC Motor Corp , last month agreed with its unionised workers that about 350 out of some 6,000 production workers would take paid vacations until around the first half of next year. Those workers would get paid around 70 percent of their previous average monthly salaries, a company spokesman said.

South Korean automakers, which had enjoyed rising global appetite for their affordable but quality models, are now facing faltering demand, analysts said.

Their combined sales during the first 10 months of 2008 fell about 3 percent over a year earlier, data from the Korea Automobile Manufacturing Association showed.

Daiwa Securities said their domestic sales, which usually carry higher margins, in November were likely to post their biggest drop since January 2006, with sales during the first 21 days of the month down nearly 30 percent.

"South Korean automakers are at the beginning of a steep downturn. They will find fewer customers amid a sluggish economy and financial crunch that cut people's asset values," said Song Sang-hoon, an auto analyst at Kyobo Securities.

"I have not forecast any massive production cut yet. But if the current situation last longer, makers should consider that."