The United Auto Workers union is firm about making health care costs No. 1 in this year’s contract negotiations with the Big Three, but there’s still another issue that has to be dealt with: overcapacity. GM, which is giving Ford Motor Co. and DaimlerChrysler Corp. fits by forcing them to follow its lead in the money losing game of market incentives in order to keep capacity utilization up, has the most to worry about. GM executives seem confident that new products, better ...

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