Ssangyong Motor mulls halting production for 3-wks

Ssangyong Motor Co, South Korea's sport utility vehicle (SUV) maker, said on Sunday it would consider halting car production to alter output of small sedans on weakening demand for SUV amid higher oil prices.

Ssangyong, owned by China's SAIC Motor Corp, is mulling giving unionised workers more vacations than last year as the company cannot operate facilities during the adjustment of production, a company spokesman said.

"The company is considering giving unionised employees vacations from July 31 to August 17 as we will fix painting lines for small and medium-sized sedans, which would be produced from 2010," a Ssangyong's spokesman Kevin Lee said by telephone.

Ssangyong's unionised workers took about one-and-a-half weeks summer vacation in 2007, Lee said.

Ssangyong plans to launch five passenger cars by 2011 years, he added, diversifying away from its core line-up of SUVs.

Ssangyong's sales fell 26 percent in the first half from a year earlier on weaker SUV sales amid higher oil prices with sales of the Actyon SUV plunging 61.2 percent, according to the company's data.

That caused the company to cut SUV production for six weeks from May 21.

SUV sales have remained under pressure globally as customers shun the gas-guzzlers on record-breaking oil prices and on weaker consumer sentiment amid a slowing economy.

On Friday, shares in Ssangyong ended down 2.08 percent at 2,825 won, underperforming a 1.02 percent in South Korea's main stock market .