GM banks on growth in China

(AP) BEIJING - General Motors Co. (GM) chairman Dan Akerson says the automaker plans to open 600 new dealerships in China and add assembly lines despite a slowdown in sales growth.

Akerson said Monday during the Beijing auto show that GM believes in the "strength of the Chinese market."

China is the world's biggest auto market by vehicles sold but sales growth slowed from 35 percent in 2010 to just 2 percent in the latest quarter. Demand has been blunted by government credit and investment controls aimed at slowing an overheated economy.

Akerson said GM will expand its dealer network from 2,900 last year to 3,500 by the end of this year.

Akerson said GM also plans to nearly double its production capacity in China to 5 million cars a year by 2016.