Vehicles of The Future: Jon Pertchik Of TravelCenters of America On The Leading Edge Technologies That Are Making Cars & Trucks Smarter, Safer, and More Sustainable
An Interview With David Leichner
Build your technical knowledge and fluency. There’s an incredible amount of opportunity in tech right now, but that doesn’t mean you need to be a tech expert. Whatever your niche — whether it be marketing, sales, engineering, or otherwise — technology is driving rapid changes across industries. Embrace it!
The automotive industry has been disrupted recently with new exciting technologies that have made cars and trucks smarter, safer, sustainable and more environmentally friendly. What other exciting disruptive technologies will we see in the next few years? How much longer will fossil fuel powered cars be produced? When will we see fully autonomous vehicles? Can we overcome the challenge of getting stuck in traffic? As cars become “moving computers”, do we have to worry about people hacking our cars? How else will our driving experience be different over the next five years? To address these questions, Authority Magazine started a new interview series about “Exciting Leading Edge Technologies That Are Making Cars & Trucks Smarter, Safer, and More Sustainable.” In this series we are talking to leaders of automotive companies, automotive tech companies, EV companies, and other tech leaders about the vehicles of the future. As a part of this series, I had the pleasure of interviewing Jon Pertchik.
Jon Pertchik is the Chief Executive Officer and a Managing Director of TravelCenters of America Inc. (Nasdaq: TA). A seasoned turnaround executive, Pertchik is leading a company-wide transformation plan at TA, positioning the 50-year-old company for renewed growth and success by driving operational efficiencies and innovation. Recently, Pertchik created and launched a new business unit, eTA, which is focused on providing sustainable fueling options for professional drivers and motorists, while leveraging alternative energy to support TA’s operations.
Pertchik’s leadership has increased TA’s profitability and improved its competitive position. Today, TA is driving growth, expanding margins and investing in the customer, with data-driven approaches informing its merchandising, pricing and marketing strategies. TA has made incredible progress under Pertchik’s leadership, as evidenced by improved financial performance.
Before joining TA, Pertchik served as CEO of Intown Suites, one of the largest wholly-owned, extended stay hotel chains in the United States. Prior to that, he served as CEO of ST Residential, a joint venture with the FDIC, and he previously served in executive roles for companies owned or controlled by private equity groups, including Starwood Capital Group, TPG, Carl Icahn, Richard LeFrak and Perry Capital.
He holds a B.A. from Rutgers University, a J.D. from the District of Columbia School of Law, and an L.L.M. in International Finance Law from the Georgetown University Law Center.
Thank you so much for joining us in this interview series! Before we dive in, our readers would love to “get to know you” a bit better. Can you tell us a bit about your ‘backstory’ and how you got started in the automotive industry?
Growing up, I loved to tinker with cars and I was a huge car enthusiast. So, I‘m a lifelong car nut, but I didn’t have any prior trucking, fuel or repair experience before joining TravelCenters of America.
TravelCenters of America is my fourth executive leadership role and, when I joined two years ago, I came in with the mindset of “how can we bring this amazing 50-year-old institution back to greatness and realize its full potential.”
Can you share the most interesting story that happened to you since you began your career?
My first ‘turnaround experience’ was incredible. I was the president of a division of a large public company in 2005/2006. I was asked by the CEO to show Carl Icahn, a well-known activist investor, and his son, around one of our buildings.
Carl and I hit it off; we became friendly. He would reach out to me from time to time about the company. A few years later, he asked if I would be the Chief Restructuring Officer of WCI Communities. I accepted and led the financial restructuring process for the $2 billion publicly traded homebuilder. That experience jumpstarted my career and opened up new opportunities.
Ok wonderful. Let’s now shift to the main focus of our interview. Can you tell our readers about the most interesting projects you are working on now?
There’s so much happening at TravelCenters of America right now! When I first arrived, we spent the first few months conducting a holistic evaluation of the entire business, looking for areas and opportunities where we could improve operations and enhance value. This really was a great business, with a great legacy and a lot of potential, but it had lost its way in recent years.
From there, we sat down and got to work on our execution plan. Our Transformation Plan is centered around a few key initiatives — enhancing the guest experience, upgrading our technology, expanding our network and launching into the world of alternative energy and sustainability. We also believed it was important to redefine our Mission statement and our company Values. This was critical to ensuring we had a unified team that knew where we were going, and what we stand for.
We are currently in the middle of our major site refresh program — which will upgrade over 100 sites by the end of 2022. That’s almost half our network, which has been a significant undertaking. We have 50 sites finished already, including physical updates of our stores and parking lots and restaurant add-ins. We are also restructuring our Customer Loyalty program, rolling out self-checkout, and enhancing our point-of-sale systems. We are keenly aware of our role as a preferred travel center operator for professional drivers and motorists and providing the best experience for our guests is paramount.
We are now using AI and machine learning and beta testing them on our diesel fuel pricing decisions. I expect that over time we will extend the use of AI and machine learning to all corners of the company.
On the alternative energy side of things, we are building a powerful network of publicly accessible electric vehicle chargers, some of which will be powered in part by a solar-based microgrid — a microgrid meaning a standalone grid that supports energy needs of the site. It will still plug into the grid, but the beauty is it can plug in and draw power during off peak times which is stored in grid scale batteries and dispense the stored electricity during peak demand times. This allows the grid to be more community friendly as it puts less of a burden on the broader grid in places like California, where blackouts and brownouts are more of an issue.
Staying in alternative energy, we also have Automotive Service Excellence (ASE) certified team members helping to develop the electric vehicle technician qualifications standards, which is a pain point as the demand for EV technicians rises along with vehicle purchases.
How do you think this might change the world?
It may be many years down the road, but EV will help get us to the point of creating clean energy. Right now, the electricity that powers 62% of electric vehicles in the country is created by non-renewable natural gas and coal. This is why we see microgrids as a part of the solution — the grids and utilities can only generate so much electricity — but microgrids can get us to a place where we are reducing emissions because they will allow us to have the generation and storage capability using clean energy that’s localized at a site, whether it’s a home, business, or TravelCenter of America location. It’s a really important part of getting our country to a constant pace of clean energy generation.
Keeping “Black Mirror” in mind, can you see any potential drawbacks of this technology that people should think more deeply about?
I think potential drawbacks of AI specifically will come from human factors. To fast forward to an autonomous future is a scary thing for a lot of people and the variables that come along with machine learning will come with a lot of trial and error. But when programmed correctly, by a human, we should be able to trust computers for something that we are used to doing manually — such as driving.
What are a few things that most excite you about the transportation industry as it is today? Why?
Fast, high-performing cars that are exciting to drive are part of Americana, and I am really excited that these already exist in the EV space. I have to give it up to Tesla for creating one of the first real production sports cars to be fully electric. Tesla was bold and took risks to come out with a car that does its job of being fast and sleek but is also electric. Tesla was the first brand to make it ‘cool’ to own an electric vehicle. As a culture, we may not have embraced EVs as quickly without the risks Tesla took; it may have taken us half a decade or more. Now, not only does it help the environment, but it can also be exhilarating.
What are a few things that most concern you about the transportation industry as it is today? What must be done to address these challenges?
The biggest concern I have is that transformation and emission reduction is a very big and important issue and we are not going to solve it with the current approach of the industry. We need to collaborate with governments, utilities and other industries on how we’ll attack this and work together toward a successful transition to EV.
Based on your vantage point as an insider in the transportation industry, what other exciting disruptive technologies will we see in the next few years? Can you share some of the new developments that will make vehicles smarter, safer, and more sustainable?
I’ve touched on a few of these, but I think the biggest of them all is that we may see more attention to supply chain technology and more movement into the clean energy space.
In your opinion, how much longer will fossil fuel powered cars be produced? When do you think EVs will be the majority of vehicles in use? Can you explain?
I think that the answer to this is very different for passenger vehicles and heavy-duty trucks. There is an equity component that needs to be addressed because EVs cost more, even with tax credits. But on the car side, I think we are past the tipping point, I think we may stop seeing fuel cars produced somewhere in the mid 2035s to 2040s and will likely be in a majority of EV cars in the 2033–2035 range, but we will see a lot of older fuel vehicles sticking around for probably decades and still being sold well into the 2040s.
On the fleets/big trucks side, I think we are looking at the year 2040–50 before large diesel trucks are not being produced anymore. That’s partly because there is so much uncertainty about big trucks, whether it’s hydrogen, renewable energy, natural gas, etc. Driving 80,000 pounds up the Rockies in extreme heat or extreme cold, EV batteries and hydrogen powered trucks are just not there yet, but it will work itself out over a long period of time.
In terms of infrastructure, to charge one standard electric heavy-duty, not even fast charge battery, takes the same amount of electricity that is needed to power 2,000 households for 24 hours. So imagine that multiplied by the 3 million trucks out there. The grids are far from ready for that yet.
At TravelCenters of America, we have the space and infrastructure to facilitate the EV shift, so when it does accelerate, we’ll be ready to service American motorists and professional drivers.
When do you think we will see fully autonomous vehicles deployed in a mainstream way? What do you think are the main barriers to reaching that stage?
Timing could vary slightly, but it is probably similar for both light and heavy-duty vehicles. I think the main barriers are going to be acceptance that a car can drive itself. The technology is there, but we need at least another half a decade of trial and error and more R&D to refine it.
My expertise is in product security, so I’m particularly interested in this question. Recently there were famous cases of hackers breaking into the software running automobiles, for ransomware or for other malicious purposes. Based on your experience, what should auto companies do to uncover vulnerabilities in the development process to safeguard their vehicles?
I don’t have direct experience with cybersecurity in autonomous vehicles, but the grid vulnerabilities are very real. The biggest challenge for the grid will be hackers exploiting larger manufactures’ cyber security teams. Typically, companies outsource their software to smaller subcontractors who may not have strategies in place to mitigate the risks of ransomware in running automobiles. I believe standards will need to be set in place for subcontractors to ensure time and attention are spent there.
If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be?
If I could inspire a movement, it would be Net Zero Emissions. Reducing emissions is vital to our future, and it’s a challenge everyone can help address.
We are fortunate that our efforts at TravelCenters of America align doing good and doing well. We are in a position to help make change happen more quickly and support the reduction of emissions.
Before we end, what are the “5 Things You Need To Create A Highly Successful Career?”
- Capitalize on your unique interests, motivators, and passions. Do what you love!
- Be organized. I’m constantly taking notes, gathering more information, talking to experts and innovators, and brainstorming new ideas. It’s basic but being well organized has been key to my professional success.
- Innovate! Creativity and a willingness to experiment are essential skills. Don’t be afraid of failure — it’s part of how we learn.
- Build your technical knowledge and fluency. There’s an incredible amount of opportunity in tech right now, but that doesn’t mean you need to be a tech expert. Whatever your niche — whether it be marketing, sales, engineering, or otherwise — technology is driving rapid changes across industries. Embrace it!
- Get excited. There are many new doors being opened to this generation in the transportation industry like alternative energy, autonomous vehicles, cyber security, and new innovations. It’s an incredibly exciting time.
How can our readers further follow your work online?
Your readers can most certainly follow TA’s social platforms (Facebook, Twitter, Instagram, LinkedIn) as well as my personal LinkedIn.
Thank you so much for the time you spent doing this interview. This was very inspirational, and we wish you continued success.
About The Interviewer: David Leichner is a veteran of the Israeli high-tech industry with significant experience in the areas of cyber and security, enterprise software and communications. At Cybellum, a leading provider of Product Security Lifecycle Management, David is responsible for creating and executing the marketing strategy and managing the global marketing team that forms the foundation for Cybellum’s product and market penetration. Prior to Cybellum, David was CMO at SQream and VP Sales and Marketing at endpoint protection vendor, Cynet. David is a member of the Board of Trustees of the Jerusalem Technology College. He holds a BA in Information Systems Management and an MBA in International Business from the City University of New York.
