General Motors surprised the motor industry, and everyone else, last week by cutting the price of its cars. It was not a deep slashfrom $10 on Chevrolets to $40 on Cadillacsbut it was a cut, nevertheless. Light and medium trucks, which are getting harder to sell, were reduced $100 to $150.
With a good sense of public relations, G.M. timed its action to coincide with company-wide wage reductions of 2¢ an hour under its escalator "cost-of-living" contract. (Wage rates are adjusted up or down quarterly, 1¢ for every 1.14 point change in the Bureau of Labor Statistics cost-of-living index.) Said G.M.'s...
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