China said it was close to agreement...

China said it was close to agreement with General Motors on the joint manufacture of auto parts, and added that it was dissatisfied with three existing joint ventures with foreign firms making vehicles in China. Chen Zutao, chief of the China National Automotive Industries Corp., said the deal with GM would involve a joint foundry project and joint production of axles, starter motors, distributors and alternators. “Up to now, we have imported parts and components from abroad and assembled them in China,” he said. Volkswagen, American Motors and Peugeot have set up joint ventures in China making vehicles, but Chen said the proportion of locally made parts was too low.