Motoryzacja

The tentative contract between General Motors Corp. and the UAW could quickly wipe out more than half the gap in labor costs between GM and Toyota Motor Corp., pulling Detroit ever closer to its Japanese rivals, industry experts say. And the gap should shrink further -- to about 6% by one estimate -- as lower-paid workers replace more-senior union members over time.

TOKYO -- In recent years, Toyota Motor Corp. has edged closer to overtaking General Motors Corp. as the world's biggest automaker.

On Thursday, Ford Motor Co. confirmed it had hired Jim Farley, group vice president of Toyota Motor Corp.'s Lexus division, and the man credited with the successful launch of Toyota's youth brand, Scion.

Although the Canadian Auto Workers union says it expects its tentative labor deal with Ford Motor Co. to serve as the pattern for Chrysler LLC and General Motors Corp., Chrysler's top negotiator expressed some concerns about the deal.

Canadian Auto Workers President Buzz Hargrove expects Chrysler LLC and General Motors Corp. to agree to the same tentative contract the union reached Monday with Ford Motor Co., but industry analysts say the other two automakers may not go along with the higher costs.