Gm To Manufacture Buicks In China

General Motors Corp. has signed a joint venture deal in which it aims to build up to 100,000 midsize Buicks a year in China with Shanghai Automotive Industry Corp., a major Chinese automaker.

The agreement, announced Monday, is the culmination of two years of negotiations between GM and Chinese officials, who also were talking with Ford Motor Co. on the project.

It envisions investment of $1 billion or more in new assembly, engine and transmission plants in China, with car production to begin in 1997. The cars would be midsize Buick sedans, designed in the United States for the 1997 model year.

GM will provide technology to the venture and rely on Shanghai Automotive’s experience making and selling cars in China, GM President Jack Smith said in the announcement.

Each company is expected to own about half of the venture. At least half the components in the cars will be built in China.