Ford Abandons Costly Next-Gen Platform to Focus on Broad Software Upgrades for All Vehicles

In 2021, Ford recruited Doug Field from Apple to lead the development of "Blue Oval Intelligence," a transformative tech stack aimed at delivering smart, connected vehicles with continuously improving features through over-the-air (OTA) updates. Ford’s ambition was to emulate Tesla’s software prowess, which has set new standards with its frequent, seamless updates. However, the automaker's recent decision to scrap its high-cost next-generation electrical architecture, known as FNV4, highlights the challenges and strategic shifts in the industry. FNV4 was intended to be Ford’s first foray into zonal architecture, a design that reduces the number of electronic control units (ECUs) and wiring, thereby lowering production costs and enhancing performance. Despite its potential, the platform contributed to a significant $5 billion loss on EVs and software in 2024. The decision to axe the project came as a hard blow to Field, who acknowledged the emotional toll of stopping an engineering initiative he had invested heavily in. However, he explained that the current market dynamics and economic conditions necessitated a different approach. Currently, Ford's electric vehicle (EV) sales are lagging, and the ongoing trade war is expected to inflate costs for essential components, such as EV batteries. This situation compelled Field to adopt a more pragmatic strategy: adapting the existing FNV3 (now rebranded as X.3) architecture to accommodate both EVs and internal combustion engine (ICE) vehicles. A domain-based architecture, which Ford will continue to use, relies on multiple ECUs to manage various systems within the vehicle, from power windows to the infotainment platform. While this setup is less elegant than a zonal architecture, it offers the flexibility to integrate a wider range of vehicle types. Field’s approach involves centralizing and consolidating critical modules under Ford’s control to ensure a seamless and efficient software experience. For instance, functions like automatic emergency braking, traction control, and airbag deployment must operate instantaneously, similar to a reflexive action in the human body. Other features, like window pinch protection, can be managed through a centralized module. This hybrid system, which Field terms a "super zonal, central compute," aims to balance advanced capabilities with practical implementation across Ford’s diverse lineup. One significant hurdle for Field’s team is the integration of software from various long-standing suppliers. These suppliers generally prefer to sell complete systems rather than act as contract manufacturers, but Field believes centralizing the software is essential for ensuring compatibility and performance. The key is to simplify interfaces and make the software adaptable and modular, much like how the brain delegates tasks to different parts of the body. Central to Ford’s revised strategy is the ability to deliver software updates to a broad spectrum of vehicles, regardless of their powertrain. While an EV can easily handle large software updates due to its robust battery, an ICE vehicle with a smaller 12V battery requires careful energy management. Field’s team has developed methods to perform partial updates and monitor the battery, ensuring updates are applied safely and effectively. The concept of a "software-defined vehicle" has gained traction in the industry, emphasizing the importance of digital connectivity and OTA updates. Ford’s decision to adapt its current architecture to cover both ICE and EV vehicles reflects a broader industry trend toward inclusivity and practicality. Industry analysts and company insiders see this as a strategic move to keep Ford competitive in a rapidly evolving market. By focusing on a superior software experience rather than the specifics of the underlying architecture, Ford aims to enhance customer satisfaction and loyalty. Doug Field’s background, having previously overseen Tesla’s Model 3 design and led Apple’s car project, brings a wealth of experience to Ford. His expertise is crucial in navigating the complexities of integrating modern software solutions into a legacy automaker’s extensive product range. While the path forward remains challenging, especially with EV sales stagnating and a potentially unfriendly regulatory environment, Field is confident in Ford’s ability to deliver on its software promises. Industry insiders commend Ford for its pragmatic approach, noting that the company’s decision to prioritize compatibility and cost-effectiveness aligns well with consumer needs. Centralizing the software stack and ensuring it works seamlessly across different vehicle types is seen as a strategic advantage. This move positions Ford to remain competitive in the transition to a more software-driven automotive landscape, balancing innovation with financial responsibility.