The International Metalworkers� Federation warned that excess vehicle production capacity in China will unleash a flood of lower-priced quality exports, driving prices down in developed economies. IMF President Juergen Peters told a Detroit conference that global automakers were rushing "like lemmings� to China to build or expand production facilities. He said the resulting glut would forcing automakers to export their overcapacity. One study released at the Detroit meeting said China's domestic passenger car sales could rise to about 3 million units by 2007, when China would have capacity for 6 million units if planned expansion goes through. United Auto Workers (UAW) President UAW Ron Gettelfinger said, "All of us must now compete against the painfully low wages and abysmal working conditions endured by so many Chinese workers.�
Categories