Ford abandons project to build Tesla-like advanced 'EV brain'
What's the story
Ford has called it quits on its project to develop an advanced electrical architecture, a key element for modern vehicles.
The effort, internally dubbed FNV4 (fully-networked vehicle), was aimed at optimizing vehicle software functions and improving quality.
With rising costs and delays, Ford has now ditched the project, according to Reuters.
The company had heavily invested in this system to enhance both electric and gasoline-powered vehicles.
Future plans
Ford's current software system to absorb FNV4 learnings
A Ford spokesperson said the company will incorporate the learnings from building FNV4 into its current software system.
The spokesperson also confirmed that Ford is committed to delivering an advanced electrical architecture with its skunkworks team, based out of California.
The team is responsible for developing advanced software and affordable EVs.
"We are committed to delivering fully connected vehicle experiences across our entire lineup," said the Ford representative.
Project leadership
Doug Field led FNV4 development, Ford CEO confirms
Doug Field, a former Apple and Tesla executive who joined Ford in 2021, was assigned by CEO Jim Farley to finish FNV4.
The decision to ditch the project was relayed to select employees via a company video last week.
Ford is now refocusing its efforts on its existing electrical architecture while continuing to support the skunkworks team, according to the video.
Industry challenges
Legacy automakers grapple with complex software systems
Unlike EV startups such as Tesla and Rivian that have built their own software from the ground up, traditional automakers have found it difficult to update their complex and costly software systems.
These systems include computer code from multiple suppliers, making it difficult for the automaker to provide rapid software updates.
Farley addressed this problem on the "Fully Charged" podcast in June 2023, noting how complicated it is to manage software written by different companies for different car components.
Upcoming systems
Ford's next-gen software was to be a 'zonal' system
Ford's next-gen software was supposed to be a "zonal" system, where smaller software brains handle functions in specific parts of the vehicle and communicate with a larger central brain.
This would shorten the length of expensive vehicle wiring harnesses and allow for faster over-the-air updates.
These advanced systems also open up opportunities for automakers to lure drivers into buying software-enabled features (assisted-driving systems), sometimes via subscriptions.
Financial impact
FNV4 development contributed to Ford's software and EV losses
The development of the FNV4 system added to Ford's software and EV losses, which totaled $4.7 billion in 2023 and $5 billion in 2024.
These electrical systems demand costly hardware that can drastically change an automaker's manufacturing process.
Despite these hurdles, Farley had earlier claimed Ford was on course to deliver the next-generation architecture, and a prototype vehicle running entirely on Ford software had wowed him.