> US automobile manufacturers were once heavily vertically integrated but unions rendered such strategy non-viable decades ago.
Dean, although it's simple and attractive to blame labor unions on the demise of integrated suppliers, that's hardly the only reason GM and Delphi dumped their component divisions. After all, the spun-off companies still retained their high labor costs. Visteon (spun off by Ford) and Delphi (spun off by GM) both quickly went bankrupt, it's true, but that probably wasn't the intention of their parent companies. The stated reason for the spin-offs was for the OEMs to focus on their 'core business' (which of course was whatever the management at that time said it was).
The real problem with the in-house component suppliers is they had no incentive to be competitive. They knew they would always get a certain amount of business from their parent companies, no matter how expensive and shoddy their products were. Kicking the supplier divisions out the door forced them to sink or swim in the cutthroat pool of Tier 1 automotive suppliers. And of course their parent companies got a nice chunk of change when they spun off the component suppliers.
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Today's Featured Article - Tractor Profile: Oliver 70 Row Crop - by Staff. The Oliver 70 was part of the "Fleetline Series" and was manufacturered from 1937 to 1948. The row-crop configuration could have either dual or single front wheels. The Oliver 70 was also offered in the standard, orchard and industrial configurations. The tractors were sold in Canada. An early advertisement states "Power when you want it - power when you need it - power to help put in crops when field conditions are right and time and help are limited. That's the power you'll find in an Oliv
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