- Acquiring VIA Motors.
- VIA Motors is a development and manufacturing company.
- VIA Motors purchases trucks, vans, an SUVS and converts them into extended range hybrid/electric vehicles.
- Powertrain replacement
- Via Motor Controller
- Initial Acquisition Cost : $190,700,366 million.
Why an Acquisition?
- Trucks and SUVs are the top seller in GM but lack fuel efficiency.
- Increased Federal regulations and standards for fuel efficiency and MPG.
- Based on the Space Matrix, GM landed under an aggressive strategy.
- We found an acquisition of VIA Motors to be the best aggressive strategic choice for GM.
How we will Implement
- Acquire VIA Motors.
- Cost: $190,700,366 million.
- Finance through free cash flow.
- HR managers will handle relevant HR matters.
- We plan to stay in the U.S. with potential markets, such as California, New York, and Florida.
- Increasing production of hybrid/electric trucks by 10,000 units each year.
The Results of our Strategy
- Total revenues over 4 years is 8.2 billion.
- Total Cost of Strategy over 4 years is 6.9 billion.
- Total Net Income return over 4 years is 1.3 billion.
- Net Present Value is 943 million over 4 years.
- Internal Rate of Return is 72 percent over 4 years.
- Strategy will help bridge the gap between gasoline fueled trucks and fully electric vehicles.