Is GM responding to economies of scale or scope?

"For years, the mantra in the capital-intensive car business has been that bigger is better. But in nearly seven years running GM, Ms. Barra has found success with an unlikely strategy: shrinking a company that for much of the 20th century was the nation’s biggest corporation by revenue and profit."

"GM now makes cars or parts in just nine countries, down from 25 before Ms. Barra took over, and employs 164,000 workers today, 25% fewer than before. Her get-smaller approach is especially unusual because it came at a time of prosperity in the car business.

Global industrywide auto sales have risen 9% since the year Ms. Barra became CEO. GM’s sales fell 25%."

"The moves have, until recently, helped GM notch record operating income and profit margins."

WSJ, Sept. 2020

The article also discusses GM's attempts to position itself to prosper as consumers move to electric vehicles.