China sales overtake US sales, GM says

China sales overtake US sales, GM says

SHANGHAI

General Motors Co. says its first-half sales of vehicles in China overtook the U.S. for the first time amid a fitful recovery in American demand.

The 1.21 million GM-brand vehicles sold in China in January to June — a near 50 percent gain over a year earlier — compared with 1.07 million sold in the U.S. market, according to figures released separately by GM’s U.S. and international headquarters.

The shift reflects GM’s growing reliance on stronger growth in emerging markets, especially China, to offset sluggish sales back home.

The recovery in U.S. auto sales this year has been fitful, with month-to-month sales falling as many times as they rose. Sales of GM’s four core brands rose 36 percent in the first half of the year over a year earlier in the U.S., but were down 12 percent in June from the month before, at 195,000, the company said.

Russian spy case

ALEXANDRIA, Va.

Two Virginia suspects in an alleged spy ring have admitted they are Russian citizens living in the U.S. under false identities, prosecutors said Friday, as officials in Cyprus said another defendant in the bust has likely fled the island after being set free on bail.

The defendants known as Michael Zottoli and Patricia Mills told authorities after their arrest that their real names are Mikhail Kutzik and Natalia Pereverzeva, prosecutors said in a court filing Friday. The pair were arrested in Arlington, Va., where they have been living as a married couple with two young children.

Zottoli and Mills, along with a third defendant, Mikhail Semenko, remained jailed after waiving their right Friday to a detention hearing during brief appearances in federal court.

Compound attacked in Afghanistan

KABUL, Afghanista

Taliban suicide attackers stormed a four-story house used by an American aid organization in north Afghanistan on Friday, killing four people before dying in a fierce, five-hour gunbattle with Afghan security forces.

The pre-dawn attack appeared part of a militant campaign against international development organizations at a time when the U.S. and its allies are trying to accelerate civilian aid efforts to turn back the Taliban.

It came on the same day that Gen. David Petraeus landed in the Afghan capital to take command of U.S. and international forces fighting the nearly 9-year-old war. Petraeus arrived from Brussels where he sought to reassure allies that the war against the Taliban was on track despite rising casualties and problems regaining control over key parts of the country.

Ship fails to dock with space station

MOSCOW

An unmanned Russian space capsule carrying supplies to the International Space Station failed in a docking attempt, Russian Mission Control and NASA said Friday.

The Progress space capsule is carrying more than two tons of food, water and other supplies for the orbiting laboratory. Three Russian and three U.S. astronauts comprise the current crew.

None of the supplies were deemed necessary for the station’s immediate survival, and the outpost is well supplied, said NASA flight commentator Rob Navias.

The spokesman for Russian Mission Control outside Moscow, Valery Lyndin, said only that the failure was due to an unspecified technical problem. NASA said the failure was due to an antenna problem.

Associated Press