Detroit Takes a New Road

The labor contracts will lower wage hikes and change old industry ways

Spring, with its annual promise of rebirth and renewal, touched all parts of America last week except Detroit. The United Auto Workers were pressed into accepting contract concessions at General Motors, just as they had been earlier at Ford. Meanwhile, the Big Three carmakers watched as new car sales continued to lose a battle against recession, high prices, prohibitive interest rates and an invasion of imports. Automobile sales figures for the second ten-day selling period in March were grim: off 43.5% from...

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