Tests Motors also Is handing UT stock options to every single employee, not getting involved with independent dealers and outsourcing the manufacturing of the cars. The corporate culture in Silicon Valley is extremely efficient and very competitive. Inside Tests, all the top executives, except the chairman Musk, are placed and working together in small, cheaply decorated offices. This is convenient since they are all working closely together and If any big decisions need to be taken, no one need to schedule big meetings, write up proposals or go through many chains of command .
It takes 4 ears for a big established car manufacturer to develop a new car model. In that duration of time, Tests Motors has created a brand new company and a new car model ready to be sold on the market. Although the new car model is ready to be sold, the founders had no experience at all from the auto industry when they decided to create the world’s first high performance electric car. Both Bernhard and Tarpapering believe that many entrepreneurs like themselves have great ideas and good intentions but are too inexperienced to succeed.
Instead of creating a car from scratch, he took the advantage of outsourcing. A design competition was set up In the fall of 2004 for the final styling of the car and four different designers competed. Lotus Design Studio won. The judges of the competition were the 1 5 employees of Tests Motors at that time. The newly established company therefore started a partnership with the England based company to get help with the design. The partnership between Lotus and Tests works well for many reasons.
One of the reason Is Lotus has a factory In England which fits to a small production of cars. Which allows Tests Motors to basically manufacture the cars they get orders for. This helps Tests to void spending lots of money on the storage of not yet sold cars. Another reason for using Lotus’ factory In England is that the Tests Roadster is based on the same chassis and some other parts as Lotus Elise. Therefore Tests Motors are able to save on material costs by sharing the platform. Environmental friendly Nowadays, people are Judged on the type of car they choose to drive.
Of course, car manufacturers know about that fact and Tests Motors target their potential customers to market their products. For example, anyone who drives a nice car is perceived by others as being wealthy and no one wants to be seen driving an unattractive car. Consumers also tend to feel better when they are driving a nice or a new car. Beside that, another feature of the coloratura aspect for car is that auto makers have to keep In mind the growing environmental concerns and the need of fuel efficient vehicles.
Many environmentalists are worried about the impact that the gasoline cars have on the environment and therefore search for alternatives. Global century. As we all know, fuel gas emission is one of the major reasons to cause this environment issue. Ever since the sass, automakers have been trying to put different specific-designed parts into cars as attempts to reduce harms to the environment caused by greenhouse gases. The trend for motor vehicles is gradually changing as being more environmentally friendly. There has always been a great interest in environmental issues among the engineers in Silicon Valley.
Therefore, Bernhard believes that there is a market for his innovation and he wants to create not only a sports car that is battery powered, but also a notable auto company. Bernhard realized that he had to change the mind of the customers, I. E. That electric cars are ugly and with a limited range. All this, in order to be able to get them interested in a new car from an unknown company in Silicon Valley. So, Tests Motors has created a car that is faster than a Ferreira and more environmentally friendly than a Toyota Pries.
The Tests Roadster can travel around 356 kilometers after charging for 12 hours in an ordinary household socket. Technological Savvy The concerns for the economy and global warming have forced the automobile industry to start developing alternatives for fuel vehicles. At first, the automakers showed a little interest into this concern and they did not want to look into the development of alternative energy sources at all because of the high cost and the many risks involved. Nevertheless, due to new legislations, automakers do not have the choice anymore.
They have to come up with new technologies to make fuel- efficient cars or find alternative to normal fuel engines. At the end of the 20th century, car manufacturers came up with new technology to produce internal combustion engines with an electric motor and the development is on-going. The automotive market is characterized by a very low number of entrants. In order to compete in this market the newcomers must be able to achieve economies of scale by adopting a cost saving strategy. Therefore, the car manufacturers must mass- reduce to be able to offer cars to the customer at a reasonable price.