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Tesla and Gm Proposed Merger

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FINC 664W
University of Redlands
Capstone Paper
General Motors and Tesla Merger
Juan Carrillo, Shane Cheek, Jeffrey Haynes, and Peter Delacruz
February 23, 2013

Dear Fellow Shareholders:

A meeting of Shareholders is scheduled for Saturday, February 23, 2013. Enclosed is a copy of our proxy statement.
At this meeting of shareholders, the Board of Directors will be seeking approval to acquire Tesla Motors. The Board of Directors believes that this merger will provide General Motors revenue, growth, and competitive edge to our existing product mix. Additional information concerning this matter is presented in the body of the proxy statement. We encourage you to review this information.
Please take a moment and sign, date, …show more content…

Because of Durant’s willingness to embrace change and the needs of the markets, G.M. would soon become the industry leader in personal transportation and would remain there for the next 70 years.
GM also was forward thinking when considering their employees. G.M. was a leader in compensating their employees favorably, while continually churning out a steady income for investors resulting from their high-speed growth. The organization also provided by far one of the country’s most copious health care and benefit plans. Throughout the 1950s G.M. leaders and workers were pleased to declare the company had the highest compensated employees in the US. To ensure employees were accessible to return after shutdowns for model year changes, G.M. consented to a revolutionary union clause that compensated workers idled by shutdowns. Also, G.M. made available great pension plans with significant retirement compensation and maximum benefits for long-time employees. This “Success Formula” permitted G.M.to take control of the industry. The company’s identity to be the largest – the General – was wedded to their strategy of owning the biggest distribution along with the broadest product range. And the Success Formula was effective, as each and every year G.M. sold far more cars and trucks compared to anyone else even while creating outstanding rates of return from the 1940s throughout the 1960s and into the 1970s.
GM would not exist

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