Vertical integration is supposed to give the parent company
more control as well as lower cost of the element that they are integrating.
However, after GM’s bankruptcy they are doing the opposite. GM is closing
corporate owned dealerships as well as selling the parts supplier Delphi. These
moves are to save GM money over the next few years. Instead of divesting though
GM should have “broke” the union. By breaking the union, GM could have cut cost
as well as become more nimble to human resource issues.
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