General Motors, Ford and other automakers may have to scale back or delay expansion in China as measures to cool the economy curb demand for new vehicles.

General Motors and Ford, along with Toyota Motor Corp., are among those that have announced plans to increase production in China in the next few years.

Accounting firm KPMG International said that raised concerns about future overcapacity.

China's auto sales have been growing at a slower pace this year after the government restricted lending for cars and as customers hold off purchases in anticipation of automakers offering bigger discounts.

(CRI.com September 27, 2004)