Protesters brandishing steel pipes clashed with police armed with clubs and water cannons for the fifth day, witnesses said. About 10 people were injured, but no arrests were reported.

The bankrupt automaker, South Korea's third largest, fired 1,750 workers last week after 19 months of support from creditor banks failed to staunch hefty monthly operating losses or attract a buyer for the firm and affiliates.

Commerce minister Shin Kook-hwan said on Tuesday Daewoo's banks would look for another buyer or might support the company themselves if takeover talks with General Motors Corporation and partner Fiat fell through.

Shin said creditors were expected to start selling Daewoo Motor's overseas assets this month. The automaker's mammoth operations span 12 countries.But analysts appeared sceptical as progress with GM has been slow and the world's largest automaker is cutting back in the face of a slowing US economy.

Earlier hopes to sell the firm to Ford were dashed when the US auto giant abruptly walked away from exclusive talks after offering a non-binding bid of 7.7 trillion won.

"The government says it expects GM to come in, but they've been saying that for some time," said Michael Moon, an auto analyst at UBS Warburg Securities. "US automakers are facing difficulties in justifying global investments, especially in south Korea."

Due diligence by creditors that have kept Daewoo Motor onlife support since last August found it had liabilities of 18.9 trillion won ($15.18 billion), against assets of 17.9 trillion won.

Its asset value is expected to have fallen in the months of uncertainty since. Daewoo's total January vehicle sales plunged 51.9 per cent year on year to 38,710 units.