With its bankruptcy filing last year, American sought to close its cost gap with rivals.
The labor cost gap has declined largely because of mass layoffs in southern states, rather than productivity gains.
Pages will be cut from sport, business and news sections to make up for the cost gap of keeping the magazines.
In California, the RAV4 is eligible for $13,000 in state and federal tax credits, however, which helps narrow the cost gap.
Detroit will be looking for ways to shrink the cost gap between U.A.W. workers and nonunion employees of American plants owned by Toyota, Hyundai and other foreign car companies.
But Germany would also have to accept more inflation at home, to help its less competitive neighbors close the cost gap with the ultracompetitive Germans.
Mr. Magoon, the fund consultant, expects the cost gap between active E.T.F.'s and active mutual funds eventually to be anywhere from 0.4 to 1.5 percentage points annually.
Analysts at Deutsche Bank reckon that the labour deal could narrow the cost gap by a few dollars more.Some union members will complain loudly about the new deal.
Four years ago, the United Automobile Workers agreed to allow Chrysler, G.M. and Ford to pay lower wages to new hires to help close the cost gap with foreign carmakers.
