AUGUST 20, 2018 33 SUPPLIER BlueGreen Alliance, a coalition of labor and environmental groups, 288,000 supplier jobs were tied to making components and tech- nology that improve fuel efficiency. GM when it was comfortable with the results. During a two-year advanced development phase, GM incorporated the fuel manage- ment technology in one of its engines. Once the automaker was convinced it was ready, it coordinated with suppliers to retool the en- gine heads so individual cylinders could be clean cars. Tough rules helped keep company in U.S. “If we take away that pressure, we’d be strug- gling to get traction in the U.S.,” he said.
“And perhaps the concept of Dynamic Skip Firing never makes it, or alternatively, since we be- lieve in the concept, we would have just turned our attention immediately to Europe or Asia and focused efforts there. And perhaps Tula ends up growing up on another continent. “We’re still confident that we can continue a dialogue with the administration and Cali- fornia to communicate the industry’s need for progress with the standards,” said Laurie Holmes, senior director of environmental policy at the Motor & Equip- ment Manufacturers As- sociation.
She said her optimism is based on the industry’s united front in seeking a single national program and compliance flexibility, but the Trump adminis- tration has tended to ignore the auto indus- try’s appeals for modest tweaks to trade agreements and the CAFE rules. continued from Page 3 standards at the 2020 level, rather than con- tinue the graduated increases. “We’re still confident that we can continue a dialogue with the administration and California to communicate the industry’s need for progress with the standards.” deactivated and then scaled for production — a process that took an- other three years.
According to an internal EPA document made publicly available last week, the ad- ministration’s proposal could result in the loss of up to 35,000 jobs per year. Suppliers such as Tula are most likely to feel the pinch because they stuck their necks out for auto- makers by investing in r&d for advanced fuel management systems, emissions controls, lightweight materials, electrification and oth- er advanced technologies. “But I know it was certainly beneficial for us to have a strong interest from a domestic manufacturer,” Bailey said.
Support from GM “And as a small company, it’s a lot easier to work in your backyard than a couple conti- nents away.” Te program has helped GM keep pace in terms of efficiency with Ford, which switched to aluminum bodies for its current-generation F-150, and Ram, which has in- tegrated a mild hybrid system into some ver- sions of its latest 1500 pickup. Putting on a broader policy hat, Bailey ex- pressed concern that loosening fuel efficien- cy and emissions rules would erode U.S. lead- ership in developing advanced vehicle tech- nologies.
Laurie Holmes, Motor & Equipment Manufacturers Association Predictable rules “Te home market is where a lot of early de- velopment takes place and new technologies tend to be introduced first by global auto- makers,” Bailey said. “Tey start at home and then move into other regions. And if home isn’t demanding any requirements or new aggressive development, that’s not a good thing. While car companies lobbied President Donald Trump to revisit the corporate aver- age fuel economy rules in hopes of winning some compliance flexibility, suppliers have pushed to prevent any significant changes that would undercut their investments.
Tey argue that the fuel economy mandate has contributed to job growth in automotive technologies and that they need predictable rules to justify investments. “Te truth of the matter is, GM played a real- ly large role in our ability to commercialize our product,” Bailey said. “Tey might have done that anyway, but I think it’s highly likely that the federal standards that were in place helped facilitate their interest in exploring a new technology.” Bailey is convinced the CAFE rules played a major role in GM’s 2012 decision to invest in Tula, become a development partner and li- cense its technology. Dynamic Skip Fire is well-suited to GM’s strongholds:
full-size pickups and SUVs, powered by big V-8 en- gines. “Independent of what you may think about global warming,” he added, “it makes little sense to abdicate a strong competitive posi- tion to others for no apparent gain.” a Absent aggressive fuel economy rules, Tula might have moved overseas, where govern- ments are pushing automakers to develop According to a report last year from the Tula did proof-of-concept work on a GM Yukon Denali with a V-8, and approached WAHLBERG TESLA Partners are interested in buying more stores How to separate the company, the man? Wahlberg said. “We want to be as active as possible.
We want to be here and be as visible as possible.” continued from Page 4 continued from Page 3 Tesla’s greatest strength has been becoming a weakness for some time. A Rolling Stone profile last year provided the first undeniable glimpse of Musk’s emotional instability, and tweets about drug use presaged the latest revelations that Musk’s use of the sleep aid Ambien has worried Tesla’s board of directors. Te idea borrows from something Wahlberg does at his chain of Wahlburgers restaurants. Feldman, dealer principal of the Chevy store and CEO of Feldman Automotive Group, now with nine stores, called the system a giant FaceTime of sorts.
It also will be used to give updates on Wahl- berg’s life including his movies. Mark Wahlberg, left, and dealer principal Jay Feldman are looking to beef up sales and staffing. TOM WOROBEC To those versed in the challenges of the auto industry, Musk’s wild-eyed ambitions and bizarre pronouncements have always smacked of a disconnect from reality. So too has Tesla’s utter dependence on its CEO. Taking advantage of Wahlberg’s social media popularity is part of the game plan, said Feldman, who met Wahlberg in 2013 in Detroit during the filming of the fourth installment of the Transform- ers movie series. way to go — the store is in the Top 25 now, Gil- more said.
Elon Musk is in many ways a throwback to the early days of the auto industry. Going forward, Wahlberg and Feldman are in- terested in opening more dealerships together. Tey are looking for other locations, possibly in the Midwest. To increase sales, inventory is being added. Managers are migrating the dealership manage- ment system from Dealertrack to CDK Global. Feldman employees from Michigan stores are helping build in processes that had been absent Making cars is the ultimate team sport, and in general, industry leaders are more committed to their teams than their own images.
Tough widely seen as a futuristic figure, Musk is in many ways a throwback to the swashbuckling early days of the auto industry when forceful personalities led a handful of companies to lasting success, and many more to bankruptcy and the ash heap of history. If Tesla has become more celebrity melodrama than industrial case study, the blame belongs as much on Musk’s enablers — from online fan forums to the media to Tesla’s board of directors — as on Musk himself. Te dream that one man could single-handedly accomplish the impossible was so powerful that millions of people unwittingly contributed to the pressures that have created this situation.
Te dealership will sell Mark Wahlberg Chevrolet merchan- dise ranging from T-shirts, hats and jewelry to key chains and li- cense plate holders, Feldman said. And a Wahlburgers food truck will visit the store in the coming weeks to serve up burg- ers. around traffic management, cus- tomer follow-up and prospect- ing, Feldman Automotive COO Dave Katarski said. “What better brand to be a part of. I love cars in general, so I’m a fan of a lot of different brands, but Chevrolet is such an iconic brand.” Te dealership, with just more than 100 employees, is looking to hire 15 to 20 service technicians and five to 10 sales reps, Feldman said.
Musk stands out so sharply in the automotive landscape because he has stepped into an American cultural archetype that has been largely abandoned. Te auto industry has become increasingly consolidated and risk-averse, and while the cult of Elon may seem modern and new, it brings with it profound risks of a bygone era. Fans also will be able to buy Mark Wahlberg customized vehi- cles complete with special logos stitched into floor mats and headrests. Mark Wahlberg “We’ve had a lot of interest from people,” he said. “People know [the dealership has] been sold to an experienced owner-operator.
Obviously, Mark’s fame does not hurt.” It may not be too late for Tesla to separate itself from its CEO’s personal crisis, but the company will not beat its addiction to Musk’s personal brand without paying some kind of price. Anyone who has seen a loved one struggle with addiction can tell you that co-dependent relationships are a contributing factor that can be as difficult to break as the addiction itself. Te first step is recognizing that the situation is out of control and that it’s better to make tough choices now than watch it spiral toward self-destruction. “He’s going to autograph the car for the custom- er,” Feldman said.
Wahlberg got a chance to test his car-selling chops on national TV last week in an appearance on the “Te Late Show with Stephen Colbert” in which he took a stab at selling an Equinox to the host. “We have the best deals,” he told Colbert. Wahlberg said providing the customer with an experience and the best customer service is key. He likened the dealership to the Wahlburgers business. Tis makes Tesla an automotive story like no other, but it also puts those of us who tell its story in the awkward position of having to find the all-too- vague line between the company and the man. As Musk’s personal crisis takes center stage, drawing this line becomes even more difficult.
Tesla’s triumphs and tragedies hold a host of important lessons for an auto industry on the cusp of profound change. For all the teachable moments relating to design, manufacturing and public relations, the most important lesson is turning out to be that the power of an individual’s appeal may be too delicate to stake the fate of a company worth tens of billions on. “Te celebrity factor can drive people to the doors,” Wahlberg said. “But it’s the customer ex- perience that our staff and employees provide that keeps people coming back.” He also professed his love for Chevrolet, some- thing he expanded on during his visit to the deal- ership. “What better brand to be a part of.
I love cars in general, so I’m a fan of a lot of different brands, but Chevrolet is such an iconic brand,” said Wahl- berg, who once worked as a mechanic and tow truck driver and spent $200 on his first car — a 1979 Pontiac LeMans. I’ve “done a lot of stuff with them in the past, product placement and stuff like that in films, so hopefully there’s a great relation- ship to be had there in the future as well.” Justin Luckett, a salesman at the store since De- cember, said the new owners have helped revive its energy. Customer traffic has increased tremen- dously, and he expects that to grow even more once advertisements kick off.
Te question that Tesla’s board of directors may have ignored until too late is: Can the company survive without its talented but troubled leader? And is more traffic helping with sales? “Absolutely,” said Luckett, who was able to get a picture with Wahlberg during his visit. “I’m doing great. I was doing great before. I’m doing great now. I believe it’s just the work ethic. You have to have a sense of self-motivation in the car busi- ness.” a Te sooner the board answers that question, the sooner we can be free of the celebrity soap opera drama and get back to covering the business of making and selling cars. I, for one, am ready.
Feldman wants to make Mark Wahlberg Chev- rolet the top-selling Chevy store in Ohio. Tere’s a You may email Edward Niedermeyer at eniedermeyer@crain.com.