Ford Scrapped Plans for Creating Autonomous Vehicle Brain Equivalent to Tesla's
Going Ahead Without the (Not So) FNV4:
Ford Motor, sick of its self-proclaimed revolutionary electrical architecture project, FNV4, has called it quits. Sources in the know say this ambitious brainchild, slated to provide a unified software experience across EVs and gas-powered vehicles, bit the dust due to some rough patches.
Ford had pumped some serious cash into FNV4 with the hopes of streamlining vehicle functions and cutting costs, all while increasing profitable features for both EVs and gas-consuming cars. Unfortunately, the project hit a dead-end thanks to escalating costs and noticeable delays.
A Ford spokesperson spilled the beans, stating that the company would leverage whatever it learned from developing FNV4 into its current software system, focusing intently on constructing a top-notch electrical architecture alongside its secret squad, nestled in Cali. This stealthy team's mission? Developing state-of-the-art software and affordable EVs that won't break the bank.
"We ain't crafting half-baked connected car experiences here - the whole darn lineup's getting a taste, no matter the powertrain," the spokesperson declared.
Jim Farley, Ford's big boss, tapped former Apple and Tesla executive Doug Field to seal the deal on FNV4. Field's hefty payday of $15.5 million in 2021 reflects his leadership role.
In a company video sent to a select group of employees last week, Ford announced it's refocusing its efforts on its current electrical architecture and continuing to bet big on the Cali crew, also known as the skunkworks team.
Competitors such as Tesla and Rivian have managed to create their software from the ground up, while traditional automakers often grapple with complex, difficult-to-update systems that integrate code from a multitude of suppliers. Ford CEO Farley described this challenge in July 2023 on the "Fully Charged" podcast:
"We've got 150 of these modules with semiconductors all through the car, but the software? That's written by 150 different companies, and they don't exactly play nice together. It's a technological anaconda that's hard to tangle without causing quality issues and headaches."
The fall of FNV4 marks a significant setback for Ford, as it tussles with Detroit rivals like General Motors and Stellantis to develop advanced electronics and software. Mastering these systems isn't just a fun side hustle; they serve as the cornerstone for auto manufacturers to put out better vehicles faster.
"Speed sells," boasted Terry Woychowski, president of engineering company Caresoft Global, as he showed off the tangled web of electrical guts at the company warehouse. "It's the key advantage any company can have."
Farley reiterated these sentiments in a September interview with our website, emphasizing Ford's commitment to building software-enhanced vehicles (not just for EVs but also gas-guzzlers). The thing Ford hoped to achieve with FNV4? A "zonal" system, where smaller software brains govern specific vehicle functions and communicate with a central brain, leading to shorter wiring harnesses and quicker OTA updates.
Advanced systems like these also offer the opportunity to sell software-enabled features to drivers, such as assisted driving systems, sometimes via subscriptions. John Lawler, Ford's Vice Chair and former CEO, said in 2023 that FNV4 could accelerate and increase the number of services on every vehicle sold.
As for the cold, hard cash, those electrical systems require more than just lines of code. They require expensive hardware that can fundamentally change a manufacturer's production process. FNV4 didn't make things easy for Ford, contributing to software and EV losses amounting to $9.7 billion in 2023 and 2024.
So, as they say, when life gives you lemons, make lemonade - or in Ford's case, pour it back into their current software development, dig their heels in, and push forward in this competitive landscape.
Sources: [1] [2] [3] [4]
- Ford, despite the abandonment of its FNV4 project, will apply the knowledge gained from its development to improve its current software system, focusing on developing advanced, affordable electric vehicles.
- In a bid to catch up with relentless competition in the automotive industry, particularly from companies like Tesla and Rivian, Ford will refocus its efforts on its current electrical architecture and the Cali-based skunkworks team.
- Ford's CEO, Jim Farley, recognizes the necessity of mastering advanced electronics and software, as they serve as the foundation for manufacturers to produce better vehicles more efficiently.
- As Ford moves ahead in the face of the FNV4 setback, its positioning is geared towards the development of a "zonal" system, where smaller software components govern specific vehicle functions, encouraging shorter wiring harnesses and quicker over-the-air updates.
- With software-enhanced vehicles becoming increasingly important, Ford hopes to exploit this opportunity by offering software-enabled features such as assisted driving systems, potentially via subscriptions, to generate income from within the transportation and finance sectors, guided by the lessons learned from its challenging experience with FNV4.
