AD #2410 – SEC Investigating Elon Musk for Fraud, GM’s New Fuel Management System, Parking Brakes Get Expanding Role

On today’s show… the SEC is looking into Elon Musk’s tweets… we’ve got more information about GM’s new fuel management system… and parking brakes could soon be used for a lot more than holding a vehicle in place. All that and more coming right up on Autoline Daily.

This is Autoline Daily the show for enthusiasts of the automotive industry.

SHOW ME THE MONEY!
Elon Musk rocked the automotive world when he announced on Twitter that he wants to take Tesla private and will pay $420 a share to do so. Tesla stock rocketed up to $380 a share the day of the announcement. But yesterday they dropped to $370. Some investors are wondering if the deal will really go through. Others wonder if it’s a ploy to manipulate the stock price. Tesla has a loan coming due soon that it can pay off in shares only if the price is over $350. Otherwise it’s going to have to cough up nearly a billion dollars in cash. And now the Securities and Exchange Commission is investigating the deal. If it doesn’t like the way the deal smells, Elon Musk could face charges of fraud. Obviously Musk knows all this and we think it’s unlikely he would risk going to prison, but clearly this story isn’t going away anytime soon.

DIFFERENCE IN FORD GOING PRIVATE
And a bit of a history lesson here. It was exactly 99 years ago this year that Henry Ford took the Ford Motor Company private. Henry bought out all his investors so that he could have complete control of the company and didn’t have to answer to anybody. But there’s one key difference. The Ford Motor Company was unbelievably profitable when Henry took it private. Tesla is not.

AUDI E-TRON TO STOP ON A DIME
In other EV news, Audi revealed some interesting data it gathered from the prototype of its all-new e-tron SUV. The two electric motors put out up to 300 kW of power and propel the vehicle to 60 MPH in under 6-seconds. But you need a lot of stopping force to harness all that power, and Audi makes it sound like the e-tron will stop on a dime. It says it’s the first automaker to use a electrohydraulic braking system in an electric drive vehicle. This is where a hydraulic piston is used in the brake module to generate additional pressure quickly. Due to the fast pressure buildup, Audi says braking distance is shortened by up to 20% compared to a conventional system. Energy recuperation will also be quite impressive. The system will handle over 90% of all stopping events and can contribute up to 30% of the SUVs range, which on the European WLTP test cycle covers more than 400 kilometers or about 250 miles. The production e-tron makes its world debut on September 17th.

Still to come… Ford celebrates the production of the 10 millionth Mustang.

MORE OEMs ACCUSED OF IMPROPER TESTS
Uh-oh! More automakers are in hot water over emissions and this time it involves Japanese automakers. Reuters reports that the Japanese government is accusing Mazda, Suzuki, and Yamaha of conducting improper fuel economy and emissions tests. The government ordered the automakers to check their procedures after it discovered Nissan and Subaru had performed improper tests last year. But unlike Volkswagen, the Japanese companies haven’t broken any laws. The government says the automakers certified a number of vehicles that were tested in invalid conditions. However, none of the carmakers found significant emission and fuel economy issues with vehicles and don’t have plans to issue a recall.

FORD TO BUILD BABY BRONCO
As we’ve reported, Ford is reviving the Bronco in 2020 and the company just confirmed it will introduce a “Baby Bronco” as well. Ford’s head of product development and purchasing, Hau Thai-Tang, revealed it’s working on a small SUV with off-road styling, that will be based on the same platform as the Focus. It will have a premium price and could debut next year or in 2020.

FORD PRODUCES 10 MILLIONTH MUSTANG
And in other Ford news, the company is celebrating the production of its 10 millionth Mustang. Number 10 million is a 460 horsepower Wimbledon White GT V8 six-speed manual convertible, which is a tribute to the first Mustang produced in 1964 that was the same color and model with a three-speed automatic and 164 horsepower V8. As part of the celebrations, the company invited 60 Mustang owners of all model years to gather at the Flat Rock Assembly plant where the Mustang is built to spell out the milestone with their cars. It was then followed by a flyover from three World War II era P-51 Mustang fighter planes.

GM improved its cylinder deactivation system in the new Silverado and Sierra. And we’ll have more about that, right after this.

GM’S DYNAMIC FUEL MANAGEMENT SYSTEM
We’ve got more information on the Dynamic Fuel Management system that GM is offering on the new Chevrolet Silverado and GMC Sierra pickups. DFM, as they call it, is a cylinder deactivation system. It’s standard on the 5.3 V8 engine with the 8-speed transmission, not the 6-speed. And it’s on the 6.2 liter with the 10-speed. Unlike the Active Fuel Management system, or AFM, that was available previously, DFM can have the engine running on only 2 cylinders. And it can operate on any combination of cylinders depending on engine load. The system primarily operates via software, but requires deactivation lifters and electronically operated oil solenoids, so there are mechanical components. DFM improves the fuel economy of these trucks by 5% on the EPA test cycle, which is a significant improvement for not a lot of investment. General Motors has an exclusive license on the technology, but will not say for how long.

SMART PARKING BRAKE
The parking brakes are usually incorporated with the rear braking system and are used to keep a vehicle in place after it’s been put in park. But soon those roles could change and be expanded upon. Supplier Chassis Brakes International is working on a new electronic Smart Parking Brake that is instead part of the front brake caliper. This allows for double the clamping force compared to a rear system, so in the case of a failure in the hydraulic system, the Smart Parking Brake could bring the vehicle to a stop. Or offer a steer-by-brake function, where the brakes help the driver or autonomous system maneuver around an object. The effect would be minimal, but it may be all that’s needed to avoid an accident. The company is also looking at how additional sensors could detect things like wheel slip and monitor vehicle dynamics and a “dry” braking system with no hydraulics, as a way to reduce weight. Chassis Brakes expects the Smart Parking Brake to go into mass production in the next 5 to 6 years.

And just a reminder, there will not be a new Autoline After Hours today. But John and Gary will be back next Thursday, August 16th, with some of the best insider discussions in the automotive industry.

But that’s it for today, thanks for watching and please join us again tomorrow.