Ford Spent Millions on Tesla Technology for Its Vehicles but Later Discreetly Abandoned the Project | Carscoops

      The new system was intended to facilitate better software integration and simplify OTA updates, but it was regarded as too expensive.

      Ford plans to redirect its attention to its existing technology and skunkworks team. The company had intended to implement a zonal system for easier software updates. Even with this shift, Ford remains dedicated to enhancing connected vehicle experiences.

      Ford had been developing an advanced electrical architecture for its upcoming models, focused on streamlining software functions, reducing costs, and improving its competitive stance against EV frontrunners like Tesla. However, similar to VW’s Cariad subsidiary, Ford's initiative faced several challenges and, as reported by three sources familiar with the issue who spoke to Reuters, has now been unexpectedly discontinued.

      Reports indicate that the now-canceled system was internally referred to as FNV4. Doug Field, a former Apple and Tesla executive who joined Ford with considerable hype and earned $15.5 million for his contributions last year, led this project. Despite his notable background, FNV4 became financially burdensome, prompting Ford to terminate the project entirely, although certain aspects will be integrated into the company’s current software systems.

      The Reuters article highlights that the FNV4 initiative led to substantial losses in Ford’s EV and software sectors, amounting to $4.7 billion in 2023 and projected losses of $5 billion in 2024.

      Software has become essential in today's landscape, where electrification is seen as the future, and consumers expect vehicles filled with technology. Consequently, it has become increasingly critical to ensure that brands develop integrated and advanced software systems. However, since companies like Ford rely on hundreds of electronic components from various suppliers, the inability of some parts to communicate with each other complicates the rollout of OTA updates.

      Ford was considering adopting a ‘zonal’ system for its next-generation architecture, which would feature software "brains" for specific vehicle parts communicating with a central "brain," according to Reuters. This approach would decrease the reliance on lengthy and intricate wiring harnesses and expedite OTA updates.

      While Ford is altering its strategy, it is not completely stepping back. In an internal video shared with employees involved in FNV4, Ford announced a return to its existing electrical architecture instead of pursuing the more ambitious redesign. However, a small advanced engineering team, functioning similarly to a skunkworks group, continues to work on what may eventually evolve into a more refined version of the same concept.

      In a public statement, Ford reiterated its commitment to remaining competitive in vehicle technology: "We are devoted to providing fully connected vehicle experiences throughout our entire lineup, regardless of the powertrain, while many others in the industry offer the most advanced technology only to electric vehicles.”

      Though the initial grand plan may have faltered, Ford asserts it is not abandoning the pursuit of smarter, more connected vehicles. It is learning that developing them is not as straightforward as simply recruiting some technology veterans and hoping for success.

      Following the Reuters article, Ford provided clarification. The company stated that the project was not "killed" but rather merged, a detail highlighted in both Reuters’ and other reports. Ford also underscored that the zonal architecture remains very much active.

      “We simply decided to merge two of our electrical architectures into a common electrical framework for application across many more vehicles, encompassing all powertrain types,” a Ford spokesperson explained. “This is to facilitate the connected digital experiences already well-received in products like the F-150, Mustang Mach-E, and Lincoln Nautilus and Navigator. Future EVs and models like Bronco, Mustang, Super Duty, Ranger, and Transit will also gain these capabilities.”

      “Simultaneously, our next-generation advanced electric vehicle platform (referred to as the Skunkworks project) has provided us the opportunity to reinvent from the ground up and create a next-gen zonal architecture, characterized by significant hardware simplification and a flexible in-house software platform designed for our future affordable electric vehicles.”