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This is an informational power point of a possible merge between two companies...GM and Tesla Motors.

Published in: Automotive, Career, Business
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  1. 1. The Big Three
  2. 2. Henry Ford Henry Ford’s love for engineering and automobiles helped in revolutionizing the industry. He first began as a young man who was infatuated with how things worked. His interests later involved into a job at the Edison Illuminating Company. His hard work and determination gained him the position of Chief Executive. With his new position and free time, he constructed the Quadricycle which became a basis for the standard sell propelled four wheel vehicle. In 1903 the Ford Motor Company was founded. Five years later, the Ford Motor Company produced the Model T. The vehicle was a huge success and breakthrough of the automobile industry. It definitely set an example of what automobiles should be.
  3. 3. Ransom E. Olds Ransom E. Olds was too an important figure in the automobile industry. Founder of Oldsmobiles, Olds grew up around machinery, particularly engines, growing up. Tired of slow production, Olds developed the assembly line. The assembly line allowed for Olds to become the leading car manufacturer for three years running. The low-priced “Curved Dash Olds” were the most popular amongst consumers at the time. Henry Ford was amazed by Olds new concept. Ford decided to take it one step further and add a conveyor belt to the assembly line. This combination helped Henry Ford become the leading car manufacturer in the world.
  4. 4. Beginning around the 18th century, workers have demanded that they be treated better for the amount of work they did. During the 1840s, when labor unions were truly recognized, labor unions were primarily consisted of immigrants who felt that their pay wasn’t proportional to the amount of work they put in. In the court case Commonwealth v. Hunt, labor unions were deemed legal and were not “illegal monopolies that restrained trade.” Those who did join unions were often let go and replaced by a more affordable employee. From the mid 19th century onward, many people have tried to form national labor unions. The problems that served as a hindrance to the formation of a union were ethnicity, religion and skill. One labor stood out amongst the rest. The American Federation of Labor was the largest union formed during the 19th century with the organization's leader being Samuel Gomper. The AFL had shown great signs of increasing power and had reached numbers in the millions. Unfortunately, as WWII approached, the number of members in unions decreased dramatically.
  5. 5. So What Does Labor Unions Have to do With the Automobile Industry Anyways?
  6. 6. Many people in the media have This ultimately leads to the fact that auto put the blame in the United makers appear to be over overpaid and Auto Workers union to the average American’s should not have to pay reason why the Big Three for the survival of companies who overpay companies in Detroit are at a their employees. downfall. Commentators on the subject point out that high union labor costs contributed to the automobile companies’ slow decline. Jon Kyl, a Republican senator of Arizona feels that the automobile industry has “sick” for a long time. He claims that the companies have contracts with the United Auto Workers that result in huge costs. He also points out that the average American makes approximately $28.48 an hour and that those that belong to the auto union make about $73. That is about $21 more than Japanese auto makers stationed in the U.S make.
  7. 7. The housing market has also been considered a factor for the automotive industry. Economist for the National Automobile Dealer Association, Peter Taylor, made a connection stating “As goes the housing market, so goes the car sales market.” If a consumer’s home is losing value, they tend to become less wasteful of their cash. Luxuries such as the purchasing of a car will are being put on hold. What America needs now is more jobs. More jobs means an increase in the number of houses bought which will increase the number of cars sold.
  8. 8. -------------------------- •The companies should file for bankruptcy. • It’s the companies’ fault. -poor management. -low quality products -trying too hard to please the UAW union.
  9. 9. Some of the “sacrifices” the companies are willing to make are: •Cancelation of bonus pays to management positions •Cancelation of merit raises •Cuts on the amount executives get paid •..and the selling of corporate aircrafts
  10. 10. The companies are such in a slump that the government has felt the need to intervene with the future decisions that the companies decide to make. One group getting hands on are the Congressional Democrats. One proposal that they conjured up is the supervision of the companies by five cabinet secretaries and the chairman of the Environmental Protection Agency. Even if this proposal doesn’t become anything more than an idea, the government still seems to be fixated on the idea of having some sort of supervision to keep to seek records on the government auto companies approval before and make sure they could handle that the companies any transaction are using the that is more than taxpayers’ money $25 million dollars. the most efficient Senator way possible. Christopher J. Another proposal Dodd even went even suggested as far to say that that the auto GM chief executive companies would Rick Wagoner should be fired. However a spokesperson for General Motors feels differently about the situation stating, “…Rick Wagoner is the right person to continue the transformation of the company that he began and has presented to Congress to continue and accelerate.”
  11. 11. The Obama administration has chosen people who they feel will be the most beneficial to the reconstruction and advancement of the auto companies. Among them are: -Timothy Geithner (Treasury Secretary) - Lawrence Summers (head of the National Economic Council) Along with the addition of a couple of law firms who have handled cases of bankruptcy in the past. The Big Three were requested to have a reconstruction plan by February 17, 2009 and have until March 31, 2009. The Obama administration was also avid on finding a “car czar” to oversee the companies. Photo by: =rjonesdesign
  12. 12. United States vs. Japan