A captive company strategy involves giving up independence in exchange for security. A company with a weak competitive position may not be able to engage in a full-blown turnaround strategy. The industry may not be sufficiently attractive to justify such an effort from either the current management or investors. Nevertheless, a company in this situation faces poor sales and increasing losses unless it takes some action. Management desperately searches for an “angel” by offering to be a captive company to one of its larger customers in order to guarantee the company’s continued existence with a long-term contract. In this way, the corporation may be able to reduce the scope of some of its functional activities, such as marketing, thus significantly reducing costs. The weaker company gains certainty of sales and production in return for becoming heavily dependent on another firm for at least 75% of its sales. For example, to become the sole supplier of an auto part to General Motors, Simpson Industries of Birmingham, Michigan, agreed to let a special team from GM inspect its engine parts facilities and books and interview its employees. In return, nearly 80% of the company’s production was sold to GM through long-term contracts.