As the Big Three continue the toughest labor negotiations in decades, maybe both sides could take a lesson from far-away Silicon Valley. Tesla's $98,000 electric sports car will roll off assembly lines in October. As impressive as the technology under the hood of this roadster is the way the company is run. While most automakers develop and test frame and body parts in house, about half of the Tesla Roadster's parts were developed and manufactured by other companies that have specific expertise in these areas. While most of Detroit's top executives come from the finance department, Tesla's top management is made up of engineers who come from a broad array of industries. While engineers at the Big Three still focus on mechanical systems, which yield incremental innovations from decade to decade, Tesla's R&D department focuses on batteries, electric motors and power management systems. And rather than dole out conventional benefits to workers, all employees at Tesla are eligible for stock options, even if they work at below-industry wages. To be sure, the company faces plenty of hurdles. The Roadster's 0-to-60 time is about four seconds, which is impressive. But the car's range is only about 200 miles. Company executives recognize that this must be extended. And when components like seat belts and brakes are outsourced, exhaustive testing must be done to ensure reliability.
Source: BusinessWeek
