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,
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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
Tesla Motors has confronted the market in an entirely unique way for the auto making business. Tesla plans to entirely bypass the dealer by providing vehicles directly to the consumer via the
Please be reminded that our next Board of Directors meeting is scheduled for Thursday, April 20, 2017 at 8:00 AM at our office.
Review Ford Motor Company’s Form 10-K for 2012. Explain the purpose of a company’s 10-K and how it
This company was created to challenge the Ford Motor company in the twentieth century. General Motors created automatic transmissions, practical air conditioning, and the very first version self start. These creations gave General Motors the edge over Ford and other car companies at the time. “In the early years, GM's marketers added style and color to cars, putting Henry Ford and his industry-leading Model T's on the defensive” (Woodyard 03).With knowledge and advancement General Motors performed well and gained from it. But in recent years General Motors started to cut corners and build things of a cheaper quality making mistakes. These mistakes and corner cutting created problems for General Motors. It eventually lead to General Motors filing for bankruptcy on June 1st in 2009. General Motors was eventually saved from their bankruptcy but the damage was done. The General Motors plant in Moraine Ohio was shut down causing a lot of people to lose their jobs. The mistakes General Motor made did not just hurt themselves but the people who relied on those jobs. There are people who are now homeless and are struggling. The knowledge General Motors had helped them reach their success but the creators lost sight of their morals. They took the easy route and failed hurting plenty of people destroying hundreds of families and people's
D. The next annual stockholder’s meeting is on the 3rd Saturday of May. So may 19th, 2012 at the corporate headquarters in Little Rock, Arkansas. This information was found on allbusiness.com
General Motors is the biggest supplier of automobiles the United States and the second largest publicly owned company in the world. General Motors has been overwhelmed in recent years with declining profits and increasing costs. "General Motors product mix in the United States, heavily weighted toward trucks, pickups, and SUVs, is on the wrong side of gas prices. It is up against a formidable and sometimes militant union whose ability to accept the full reality of General Motors problems is not assured and gravely, it is burdened by health costs, which it supplies for a population bigger than Detroit's that is, for a total of 1.1 million employees, retirees, and dependents" (Loomis, 2006). Employees and the Union are reluctant to change their rewards benefit packages. General Motors is looking for a new and better way to change the company's total rewards packages so the company can be profitability and keep employee moral high in order to produce a quality product. These changes need to be in order with keeping the union happy while being financially beneficial.
Tesla Motors Inc is one of the leading companies for designs, develops, manufactures, and selling electric cars and energy storage products. Founded in 2003 the major specialization of the company is software for automated cars, cars powered by electric energy and solar for home power.
Historically, General Motors was recognized as a “good stand in for the corporation” (Davis 6). At the top of GMs successful reign they carried nearly a million employees
Alfred Sloan was picked to take charge of the corporation and led it to its post war global dominance. This unprecedented growth of GM would last through the late 70's and into the early 80's.
General Motors was once a back bone of American economy. It was one of those organizations who were the driving force of American automotive industry single handedly. But like any other enterprise, it has its strengths and weaknesses. Global presence with an impeccable distribution system which ensures a highest reach out couple with strong research and development gives it a competitive edge over its rivals however it has also borne its share of trouble mainly caused by recession. But now that market is picking up again, GM is also showing steady growth.
General Electric is a well-known company in many regions of the world, but what people aren’t particularly aware of are the steps that General Electric has taken to get to where it is at today. When I think of General Electric the first thing that comes to mind is the role that the company plays in the production of household appliances, but General Electric is a much bigger contributor to people’s lives than is most people realize. People aren’t familiar with the internal business decisions that General Electric makes to ensure that the company continues to grow and run as smoothly as possible, allowing the company to continue to provide people with the services that they have grown to recognize as being a trademark of General Electric.
General Motors is one of the world's most dominant automakers from 1931. After 1980s economic recession the main goal for automobile companies was cost reduction. Customers became more price-sensitive. Also Japanese competitors came into market with the new effective system of production. So market was highly competitive and directed toward price reduction. The case states that in 1991 GM suffered $ 4.5 billion losses and most part of the costs of manufacturing was due to purchased components. GM NA hired Lopez in order to find the way from "extraordinary" situation and reduce costs.
This study discusses Toyota, General Motors’ (GM), and Tesla Motor’s competitive strategies. These three companies are top leaders in the automotive industry, and this paper focuses on what their current strategies are and how they develop and manage their opportunities. The paper will also address what can impact these three companies, how they protect their company from competitors, and some recommendations for each companies.
Tesla Motors, Inc. is an American company that designs, manufactures and sells electric cars and electric vehicle power train components. Tesla Motors is a public company that trades on the NASDAQ stock exchange under the symbol TSLA. Tesla was founded in 2003 by Elon Musk, Martin Eberhard, Marc Tarpenning, JB Straubel, and Ian Wright. The headquarters of Tesla Motor located in Palo Alto, California, USA. Tesla has served in many countries, such as United States, Canada, Japan, Australia, New Zealand.
This paper details each change undertaken by the organization by highlighting the different pressures identifying the problems the organization met and ultimately detailing the solutions that General Motors implemented.