AUTOMAKERS AND TRADE: Flood of auto parts to come from China

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http://www.freep.com/money/autonews/china12_20040212.htm

AUTOMAKERS AND TRADE: Flood of auto parts to come from China

BY JEFFREY MCCRACKEN
FREE PRESS BUSINESS WRITER
February 12, 2004

During the next few years, auto imports from China -- for parts like radios, CD players or DVDs -- are expected to explode. So, too, is the number of workers employed in China by Detroit's automakers and suppliers.

Looking at Detroit's three automakers and largest parts suppliers, it's clear that the politically sensitive drive by U.S. corporations to import more goods from China will only grow.

The biggest push appears to be from General Motors Corp., which plans to increase 20-fold the number of auto parts it buys from China and uses in the United States, Europe, Mexico and elsewhere. In 2003, GM bought about $200 million in Chinese auto parts for use in the rest of the world. Its top purchasing executive expects that to grow to $4 billion by 2009.

Currently, GM brings more auto parts into China than it exports, but that will change rapidly during the next few years.

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