GM Parts Business Plans to Build Engines in China

Article excerpt

DETROIT _ General Motors Corp.'s multibillion-dollar parts business is finding a healthier lifestyle by searching the globe for work outside GM.

The Automotive Components Group announced its latest move away from the mother ship Thursday _ a joint venture to make cleaner, better-running engines for the fledgling Chinese auto market.

The world's automakers are scrambling to get a piece of the action, especially in areas such as engine management systems that the Chinese lack the know-how to develop themselves.

GM, which has an auto manufacturing plant in Oklahoma City, will hold 51 percent of the $30 million venture with Beijing Wan Yuan Industry Corp., a subsidiary of China Aerospace Corp., holding 39 percent and the Chinese government the remaining 10 percent.

"This joint venture represents one more step in the ACG's efforts to invest in the growth of China and its emerging automotive market," said J.T. Battenberg III, a GM vice president and group executive of the parts business.

GM Chief Executive Officer Jack Smith said in an interview Thursday the group could soon be set up as its own business separate from GM's North American operations.

The Automotive Components Group is made up of seven businesses. …


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