Detroit's Uphill Battle

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advised the company this spring to cut expenses by $1 billion. Chrysler complied by dropping a planned extra line of cars. In times of stress, the temptation for a cozy business-Government relationship is strong, but this almost inevitably results in an unstable marriage.

The auto industry's experience has started discussions over whether trade protectionism should be a part of reindustrialization. When Japan's share of the U.S. auto market jumped from 9.3% in 1976 to 21.8% the first half of this year, the United Auto Workers and Ford petitioned Washington to roll back imports. They argue that the sudden surge threatens the domestic industry. Ford and the U.A.W. contend further that Japan is taking unfair advantage of an artificially weak yen and international trade rules that allow them to export their products cheaply to the U.S. They assert that as a result of this the essentially identical cars made in Japan can cost less in the U.S. than in other countries.

The Carter Administration has so far resisted pressure from protectionists. The Council of Economic Advisers argues that each auto industry job saved would cost American consumers up to $100,000 through higher car prices. Without the competition from Japanese imports, American producers could doubtless increase their prices. Propping up a sickly industry by restricting the imports of foreign products is not the way to help the U.S. economy, American consumers or even the industry itself.

Perhaps the most promising lesson from the first steps to revitalize the American auto industry is a new spirit of cooperation between management and workers. When the very future of Detroit became an issue, the old "we-they" approach changed to an "all of us" one. Especially in tackling the problem of quality production, company and union officials showed a willingness to experiment and listen that should be a model for many other businesses. Some of these innovations, such as the election of United Auto Workers President Douglas Fraser to the Chrysler board of directors, are still unproven experiments. But as Fraser says: "There's a new realization that we all have problems and a lot more tolerance for the other guy's point of view."

Detroit's 1981 model cars demonstrate that the industry has learned that it must change outmoded business practices. The true test of the new generation of American cars, though, will come this fall, when millions of prospective buyers walk into car dealers' showrooms, look skeptically at the new models and then gently kick the tires.