Daewoo Motor has been forced to shut down all three of its South Korean plants due to a lack of parts as 200 suppliers refuse to make deliveries until debts totalling $1.17 billion (£816m) are paid.

The closure could threaten a rescue deal from General Motors, which agreed in September to buy the bankrupt company, a deal expected to be made binding by the end of the year.

"There is nothing we can do. It's up to the creditors," said a spokesman from Daewoo Motor.

A UK spokesman for Daewoo said: “We will manage stock levels in such a way that this hold-up, which will probably only last a couple of day, will not be remotely noticeable in this country.”