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Home»Electric Vehicles»Automakers Battle in Costly Software War with No Clear Winners
Electric Vehicles

Automakers Battle in Costly Software War with No Clear Winners

William D. KouchBy William D. KouchMay 9, 2025No Comments3 Mins Read
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Automakers battle in costly software war with no clear winners
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FYI: Ford’s Bid for Software-Defined Vehicles Hits a Snag as FNV4 Merges with Existing Systems

Legacy Automakers Face Software Challenges

Ford recently announced the integration of its FNV4 project—an ambitious next-gen electrical architecture intended to enhance both EVs and internal combustion vehicles—with its current framework. This move appears to confirm speculation that the project encountered significant challenges. It highlights the ongoing struggles for traditional automakers to transition into the realm of "software-defined vehicles" (SDVs).

Software-driven systems promise cost reduction, enhanced flexibility, and faster innovation by minimizing dependency on external suppliers. While pioneering leadership in SDVs is as daunting as excelling in EV production, it remains crucial. Today’s consumers demand seamless automotive technology, and a superior electronic interface is paramount.

What Defines a Software-Defined Vehicle?

Pioneered by Tesla with the original Model S, SDVs revolutionized automotive software. Historically, multiple electronic control units (ECUs) performed separate functions, linked by traditional networks like CAN bus, notorious for limited bandwidth.

Tesla altered the landscape by centralizing computing, utilizing fewer ECUs, and enabling over-the-air updates. This simplification reduced production costs and facilitated continuous improvements. Tesla’s approach showcased its capability when it swiftly corrected a braking calibration issue in the Model 3 through remote updates—an unprecedented feat at the time.

However, this adaptability introduces a potential downside, allowing vehicle shipments with underdeveloped software, accompanied by a "fix it later" approach.

Challenges Along the Path to SDVs

As automotive computing advances, automakers face hurdles delivering bug-free software. General Motors’ Vehicle Intelligence Platform experienced launch setbacks for models like the Hummer EV and Cadillac Lyriq due to software complications.

Similarly, Volvo encountered difficulties launching its EX90 and EX30 models, delaying them while still releasing products with software bugs. Although Ford aimed to launch its FNV4 platform, setbacks necessitated incorporating certain enhancements into the existing FNV3 system, reflecting ongoing challenges.

Volkswagen’s attempt to innovate using the Cariad software division met with limited success, leading to partnerships with Mobileye and Rivian for technological support, albeit not an ideal long-term answer.

Progress and Future Prospects

Despite obstacles, companies like BMW and Mercedes are nearing SDV launches, with the latter’s platform debuting soon. In contrast, Asian automakers, including Hyundai and Toyota, lag behind in fully embracing software innovation, though efforts are underway.

Creating SDVs involves transforming organizational approaches. Legacy automakers must blend safety-focused engineering with the creativity and speed demanded by modern software development, a complex shift in corporate philosophy.

Additionally, implementing systems that function for both electric and combustion vehicles remains a substantial technical challenge, alongside satisfying consumer expectations without alienating traditional user bases.

Conclusion: The Road Ahead for SDVs

While startups like Tesla and Rivian lead in SDV development thanks to their fresh approaches, legacy automakers are gradually advancing. General Motors’ perseverance in software innovation showcases potential success, while BMW and Mercedes aim to soon launch competitive SDV models.

Ultimately, although creating SDVs is daunting, one legacy automaker’s successful transformation into a sophisticated software entity will confirm the potential for this evolution in the automotive industry.

For more insights and updates, reach out to us at tips@automotive.fyi, or on Twitter @automotivefyi.

William Kouch, Editor of Automotive.fyi


Automakers Battle Clear Costly Software War Winners
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William D. Kouch

William Kouch, EV Senior Editor at automotive.fyi, graduated with a degree in Communications from Illinois Wesleyan University. With an extensive background in electric vehicles and a focus on Tesla and other leading brands, he brings deep industry insights and a passion for sustainable transportation. Follow William for expert analysis and updates on the future of electric mobility.

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