AUTOS: The Blue Denim Boom

WHEN President Nixon announced his New Economic Policy last August, he made Detroit the hub of his recovery program. The Government eliminated the federal excise tax on U.S.-made cars, saving buyers an average of $200 an auto, and effectively wiped out the price advantage that foreign autos had enjoyed in American showrooms —first by slapping a surcharge on imports, later by campaigning successfully for revaluation of the German mark and Japanese yen. Since last fall the strategy has been paying off. Sales of imported cars so far this year have slumped to 14.5% of the total, down a percentage...

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