Did not say it was the only reason but it was/is certainly the most significant.
Vertical integration was certainly not limited to component divisions though such are text book examples.
I was involved with GMs spin off of the component divisions and sat in some such meetings. FWIW: I was the only one in the room that had ever worked anywhere but GM (no tunnel vision) and the only one with an MBA (perspective). I was also the only one in the room who did not know how things were done at GM. I left voluntarily (for the second time) shortly thereafter because the hand-writing was on the wall though few insiders could see it.
The demise of vertical integration in the US is certainly not limited to automobile manufacturers but it was, for the most part, limited to the US and to unionized manufacturers.
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Today's Featured Article - The River Tractor - by Charlie English Jr.. This is a 4010 John Deere that was used to farm on the Diamond Island which is in the Ohio River about 15 miles southwest of Evansville, Indiana. About ten years ago, this tractor was parked close to the bank as the river was washing the bank of the island away.
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