A diagram showing the Dynamic Skip Fire system at work, selectively shutting down cylinders.

Facing tough new fuel economy standards, automakers are frantically searching for ways to boost mileage, and General Motors is betting it may have found one of the possible solutions coming out of Silicon Valley.

The maker’s investment arm, GM Ventures, is pumping cash into startup Tula Technology which is developing a system it calls Dynamic Skip Fire. The technology allows a vehicle to reduce fuel consumption by as much as 15% by briefly shutting off individual cylinders when the demand for power is reduced.

“This technology holds the potential to improve fuel economy on select GM vehicles without degrading power capability when it’s required,” said Jon Lauckner, GM chief technology officer, vice president of Global R&D and president of GM Ventures. “This joint effort combines software expertise from Silicon Valley with powertrain expertise from General Motors.”

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The Skip Fire concept isn’t entirely new. GM is one of many automakers already using a less sophisticated technology known by such terms as cylinder deactivation and displacement-on-demand. Those traditional systems can briefly shut off an entire bank of cylinders. On the 450-horsepower Chevrolet Corvette Stingray, for example, its LS4 V-8 can temporarily run in four-cylinder mode, one of the reasons it gets more than 30 mpg on the highway.

The Dynamic Skip Fire system takes the concept a significant step further. Instead of having to follow a fixed pattern, shutting off only a pre-defined group of cylinders, the system can deactivate one or more individual cylinders based on a complex software algorithm, matching power to vehicle speed and loads. The approach can also minimize the vibration some vehicles suffer from conventional cylinder deactivation, according to GM.

The DSF system is promising enough to attract a variety of investors, including Khosla Ventures, one of the biggest capital funds in Silicon Valley, along with Sequoia Capital and Sigma Partners.

“We’ve worked closely with GM during this exciting stage of DSF development, and they’ve provided essential financial support while allowing us to run our business with full autonomy,” said R. Scott Bailey, president and CEO of Tula Technology. “Our goal is the same as GM; we both innovate to make the lives of people better.”

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There’s no word on when – or even if – the Dynamic Skip Fire technology will actually make it into production, though the fact that GM is talking about it suggests it has a potentially promising future.

GM Ventures has so far invested in more than 20 start-ups, ranging from powertrain technologies to advanced steel and other materials.

The push to fund promising technologies is not unique in the industry, however. BMW has entered into a joint venture that is planning to set up the world’s largest carbon fiber production plant in Washington State.

The industry is facing some major challenges in the years ahead, especially in the form of tough new emissions and fuel economy mandates – such as the U.S. Corporate Average Fuel Economy standard that will jump to 54.5 mpg in 2025. Industry insiders say that it will take a number of technical breakthroughs to reach that goal, and funding promising start-ups could be a key to getting there.

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