China’s record-breaking first-half sales pace of 8.4 million light vehicles units, coming on the heels of 2009’s full-year milestone of 12.9 million, a 48% jump from 2008, is triggering a surge of investment that also portends the threat of costly excess capacity. For example, Volkswagen AG, the biggest foreign auto maker in China, intends to build two new assembly plants – one in Foshan, in the southern province of Guandong and the other in Yizheng, Jiansu province, bringing the auto ...

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