AUGUST 20, 2018 3 Tesla struggles with too much reliance on its troubled CEO The 2019 Chevrolet Silverado’s engine, below, uses Tula Technology’s Dynamic Skip Fire feature to boost fuel economy. Company CEO Scott Bailey, below, fears future contracts could be jeopardized if CAFE standards are relaxed. Tesla’s story has been such a soap opera that it’s hard to know which twists and turns are worth heeding. Tesla CEO Elon Musk’s pathos-laden interview last week with T e New York Times might seem like just another distraction, but it’s probably as important as anything to do with Tesla’s manufacturing or sales.
COMMENT After all, the most important factor in Tesla’s success is not its electric drivetrains, sleek styling or stunning performance, but its uniquely inspiring CEO. Musk’s ability to present himself as the architect of a gleaming science fi ction future has made Tesla’s cars and stock into symbols of triumphant techno-optimism, lending their owners a piece of Musk’s heroic appeal. So when the world’s most famous optimist admits that friends are concerned about him and that “the worst is yet to come,” it’s every bit as important as a missed production or fi nancial goal.
EDWARD NIEDERMEYER Tula Technology credits strict standards for its breakthrough with GM REPORTER Startup supplier nervous about fuel economy freeze see TESLA , Page 33 Podcast looks at tech’s role in small towns W Eric Kulisch ekulisch@crain.com more conservative and dial back orders for advanced fuel-saving technologies. And that means a slower return on investment for Tula. ASHINGTON — Tula Technology Inc. is a late-stage powertrain startup that is fi - nally producing revenue, hitting the mar- ket with innovate software designed to op- timize the power output and fuel effi ciency of internal combustion engines. “I spent my whole life in the auto industry,” Bai- ley told Automotive News.
“Implementing a new technology is not trivial. It takes time, a lot of engi- neering eff ort and capital. T row a lot of potential uncertainty and market risk on top of the technol- ogy risk, and I think what you’ll end up with Who said you can’t go home again? Tom Miller, 40, is a small-business owner in Sagi- naw, Mich., who returned to his hometown nearly 20 years ago. “I like being in a small town and be- ing able to see my family and friends,” Miller said. T e company’s algorithm selects the best combination of cylinders to fi re to match torque demand at a given moment, de- livering a 15 to 20 percent effi cien- cy boost compared with conven- tional engines.
T e Dynamic Skip Fire technology just launched into full production with General Motors which will include it in 2019 Chevrolet Sil- verado and GMC Sierra pick- ups and roll it into full-size SUVs next year. is, ‘Nah, I don’t think I’m going to go down that path.’ ” Now, as vice president of Saginaw Future, an economic devel- opment organiza- tion, he’s focused on creating a busi- ness environment that inspires other young work- ers to follow in his footsteps. And a part of that strategy is attracting self-driving and connect- ed-car pioneers to Saginaw’s streets.
T e current targets, imple- mented in 2012 under an agreement among automakers and California, would result in fl eetwide fuel effi ciency rising steadily to 46.7 mpg in federal regulators, In “Going Home,” the seventh episode of Season 3 of “Futurismo,” we talk with Saginaw city leaders about the role advanced transportation technolo- gies will play in the future of small-town America. Listen to the episode wherever you get your pod- casts or by going to autonews.com/futurismo . a Tula, a 60-person outfi t in Silicon Valley, is on the verge of landing contracts with other automakers and hiring.
But growth could be jeopardized if the Trump ad- ministration gets its way in weakening Obama-era fuel economy standards. the 2025 model year, according to the lat- est estimates.
T e EPA, which regulates greenhouse gas emis- sions, and NHTSA, which regulates safe- ty and fuel economy, this month issued a proposal to freeze fuel economy Get the digital edition of Fixed Ops Journal CEO Scott Bailey, a former Delphi Automotive exec- utive, worries that without the pressure to meet the aggressive targets laid out in 2011, customers may be see SUPPLIER , Page 33 T e August issue of Fixed Ops Journal, featur- ing a special report about how dealers can over- come the acute shortage of service and collision technicians, was deliv- ered to Automotive News subscribers along with this issue. For a digital co- py, go to autonews.com/getfi xedops .
a Concerns at EPA may hinder rollback Document could fuel legal challenges to Trump plan example, asserts that the added costs of fuel-saving technologies will motivate people to hang on to older vehicles that lack advanced safety features (even as the fuel savings encourage them to drive more). Eric Kulisch ekulisch@crain.com W sued this month was completed at warp speed with thin scientifi c evidence — claims that could undergird a coming wave of legal challenges to the proposal from states and environmental groups.
ASHINGTON — T e Trump administration reopened the feasibility review for 2022- 25 fuel economy standards in 2017 because it said the process conducted under President Barack Obama was rushed and politically motivated. It predicts that the existing rules would cut new-car sales by about 8,000 vehicles a year through 2032, but that the used-car fl eet would grow an average of 512,000 units per year. T at estimate underpins its calculation that the current rules would result in 12,000 additional deaths over a dozen years.
T eir ammunition comes from an inter- nal government document made public last week in which senior EPA staff ers told the White House that many of NHTSA’s predictions and justifi cations for the roll- back were faulty, particularly its claims that the Obama-era rules would make new cars too expensive and lead to more highway deaths. A story on Page 38 of the August issue of Fixed Ops Journal, which was delivered to Automotive News subscribers with this issue, incorrectly described Michael Knipe’s role at Subaru of America. Knipe, vice president of fi xed operations, is responsible for Subaru’s aftersales parts and service business.
C O R R E C T I O N S Now, critics of the new NHTSA-led pro- posal to freeze the standards at 2020 lev- els argue that it’s the Trump administra- tion that’s playing politics as it tries to roll back its predecessors’ policies. “It’s hard to imagine any real-world T ey say the preliminary rulemaking is- NHTSA’s consumer choice model, for see EPA , Page 37