Detroit Plays Down A Miniboom

FOR THE FIRST TIME SINCE SUFFERING COMBINED losses of $13 billion over the past three years, the Big Three U.S. auto manufacturers have each begun to show signs of a rebound. Following a dazzling string of showroom hits that increased sales this year by 25%, Chrysler reported first-quarter earnings of $530 million. Ford's gains have been steadier, but it still managed to double analysts' predictions with net earnings of $572 million. Even General Motors turned a financial corner with quarterly profits of $513 million. Still, all three companies tempered their reports with downbeat expressions of caution. Ford's chairman, Harold A. Poling, complained of "weak economies, intense competition and excess industry capacity."

Why the gloom amid a boomlet? Detroit automakers are seeking major concessions from the Administration, particularly on trade issues involving the Japanese, and are entering a summer of tough bargaining talks with the United Auto Workers. In other words, too much good news too soon could cost them gains on other issues.