Talking about the development of the car industry, especially General Motors (GM) in California, Smith is upbeat about the future of GM. He describes the company's plan to release the new "J" cars and its intent to compete with the Japanese automobile industry. Smith also discusses GM's plan for long-term investment, in which efficiencies in technology and labor costs are essential to the benefit of GM and its employees. Explaining that employee wages must be adjusted because they are much higher than wages in Japan, Smith describes GM's relationship with labor. Finally, he describes the wages and benefits in the labor agreement that GM wants to -propose to the unions.