Case | HBS Case Collection | November 1999 (Revised June 2002)

Debate Over Unbundling General Motors: The Delphi Divestiture and Other Possible Transactions, The

by Malcolm S. Salter

Abstract

Ever since General Motors (GM) announced in February 1997 its intention to divest Delphi Automotive Systems--its upstream parts manufacturing operations--Wall Street had called for further unbundling, and various stakeholders competed for their claim of value represented by GM. The case presents GM's four options for the Delphi unit and raises valuation and governance issues regarding the remaining corporate assets. A rewritten version of an earlier case.

Keywords: Valuation; Supply Chain; Vertical Integration; Corporate Strategy; Corporate Governance; Auto Industry; United States;

Citation:

Salter, Malcolm S. "Debate Over Unbundling General Motors: The Delphi Divestiture and Other Possible Transactions, The." Harvard Business School Case 800-196, November 1999. (Revised June 2002.)