Ford has discontinued a programme aimed at developing a next-generation electrical architecture, a move seen as essential to compete Tesla, reported Reuters, citing three sources familiar with the matter.
The initiative known as FNV4, was intended to enhance software functions across Ford’s vehicle range, aiming to reduce costs, improve quality, and introduce profitable new features.
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The decision to scrap the project was said to be due to escalating costs and significant delays.
The spokesperson emphasised Ford’s commitment to advancing its electrical architecture through its California-based skunkworks team, which is focused on developing sophisticated software and cost-effective electric vehicles.
Ford CEO Jim Farley had entrusted Doug Field, a former executive at Apple and Tesla who joined Ford in 2021, with the task of completing the FNV4 project.
The spokesperson was quoted by the news agency as saying: “We are committed to delivering fully connected vehicle experiences across our entire lineup, regardless of powertrain, while many others in the industry are bringing the most advanced tech only to electric vehicles.”
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By GlobalDataFord’s move comes amid efforts to address quality issues, including a high number of recalls since 2021.
Tesla’s success with over-the-air software updates has set a benchmark that Ford and other automakers are striving to meet.
The company’s early adoption of over-the-air software updates has since become standard across the industry, including among rising Chinese EV makers like BYD.
Ford has begun notifying select employees of a recent decision to shift focus toward its current electrical architecture and rely more heavily on its skunkworks team, according to sources familiar with the matter.
Unlike EV startups like Tesla and Rivian, which develop their software in-house, legacy automakers like Ford face challenges due to complex systems built with code from many suppliers.
Farley said: “We have about 150 of these modules with semiconductors all through the car. The problem is the software is all written by 150 different companies, and they don’t talk to each other. So even though it says Ford on the front, I actually have to go to (supplier) Bosch to get permission to change their seat-control software.”
Ford’s abandoned project represents a setback as it competes with GM and Stellantis to improve software systems, which are now essential for faster vehicle development and performance improvements.
The advanced software was designed to be a “zonal” system, where smaller software units control specific vehicle functions and communicate with a central brain.
This system would have reduced wiring harness costs and facilitated faster updates.
It also had the potential to offer new subscription-based features, as highlighted by Ford’s vice chair and former CEO John Lawler in 2023.
However, the FNV4 development has contributed to Ford’s losses on software and electric vehicles, which amounted to $4.7bn in 2023 and $5bn in 2024.
