Battling for Survival

Tiny American Motors Corp. quietly became the first U. S. auto company to seek formally to reopen its labor contracts in November, when it asked its 16,000 hourly workers to make wage concessions that would save the company $150 million. The automaker, which has only 2% of the domestic market, has lost some $300 million over the past two years. While cuts in wages and benefits are important to restore General Motors and Ford to financial health, they could mean the survival of American Motors.

France's state-owned Régie Nationale des Usines Renault has...

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