Auto unions warn of China overcapacity

[dArKeR]

REUTERS , DEARBORN, MICHIGAN
Thursday, Jun 10, 2004,Page 12

Excess automotive production capacity in China will soon trigger a surge in vehicle exports, putting an even tighter squeeze on prices in the auto industry worldwide, the International Metalworkers' Federation (IMF) said on Tuesday.

The warning came at the opening of a two-day meeting in this Detroit suburb, hosted by the United Auto Workers union, of the IMF and its World Auto Council.

IMF president Juergen Peters said global automakers were rushing "like lemmings into the trap of overcapacity" in China by blindly investing in new or expanded assembly plant operations there.

http://www.taipeitimes.com/News/worldbiz/archives/2004/06/10/2003174529