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Despite all the smiles, last week's pay agreement could turn out to be something of a Pyrrhic victory for the U.A.W. Detroit automakers are bracing for a stronger than ever invasion of cars from Japan and Korea, where labor costs are lower. To remain competitive, U.S. car makers are trying to reduce their dependence on high-paid U.A.W. workers. Chrysler currently relies on subcontractors and foreign manufacturers for as much as 70% of the components in its autos. As U.A.W. salaries go up, the company is likely to use more and more of those products. --By Stephen Koepp. Reported by William J. Mitchell/Detroit
