UPDATE 3-Mitsubishi,Hyundai assembly in Venezuela suspended

* Assembler Sojitz blames labor disputes for output halt

* Police killed workers in clashes at the plant this year

* Venezuela warns of action unless deal reached (Updates with comment from government, adds byline)

By Fabian Cambero

CARACAS, Aug 24 (Reuters) - The assembler of Mitsubishi and Hyundai vehicles in Venezuela has suspended production indefinitely due to labor disputes, adding to the problems of the automotive sector in the OPEC nation.

Assembler Sojitz Corp (2768.T) blamed acts of "indiscipline and anarchy" for the temporary closure of its plant in the east of the country.

Labor strife has cut production at the plant to 33 vehicles a day this year from an average of 59 a day in 2004 despite a doubling of the workforce over the same period, Sojitz said.

In January, two workers were shot and killed during clashes at the plant over labor negotiations, and protests have continued on and off ever since.

Mitsubishi Motors Corp (7211.T) and Hyundai Motor Co (005380.KS) vehicles are assembled at the plant.

The Venezuelan auto sector has slumped this year as falling oil income has led the government to reduce the flow of dollars to importers despite continued strong demand from consumers who often wait months to buy a new car.

New cars in oil-rich Venezuela often cost two or three times more than similar models in the United States or Europe. The government has warned it may impose price caps on new cars as part of a package of proposed interventions in the economy.

The government of President Hugo Chavez urged the two sides to resume talks and warned that it would act to get the plant back into operation if talks were unsuccessful.

"(Sojitz) is here under a concession agreement which must be respected," Intermediate Industries Minister Jesse Chacon told Union Radio.

"We understand there is some internal conflict and we can assist in solving this but if the situation continues... we will have to act within the legal limits," Chacon said.

Venezuela has previously nationalized companies that the government says failed to fulfil contractual obligations.

The government has taken over large swaths of the economy in recent years as it moves to implement what it calls a socialist economy.

VEHICLE SALES DOWN

Vehicle sales fell 50 percent in the first half of the year. General Motors Co [GM.UL] stopped production for at least three months starting in June, blaming tumbling sales and import restrictions.

In March, Toyota Motor Corp (7203.T) said it might leave the country because of chronic labor problems. A union leader representing Toyota workers was shot dead weeks later.

Chavez said on Sunday the fall in car production was "not important" because imports of food and other necessities took priority.

The Venezuelan leader, who is furious with Colombia's decision to allow more U.S. soldiers on its territory to fight drug trafficking, said earlier this month that Venezuela would import vehicles from Argentina instead of its Andean neighbor. (Additional reporting by Patricia Rondon, editing by Gerald E. McCormick, John Wallace and Valerie Lee)