Ford Scraps Ambitious Tesla-like Vehicle Software Program

Ford Motor has terminated its fully networked vehicle project, a pivotal initiative that was once aimed at rivaling Tesla’s advanced vehicle software. The news was initially published by Reuters, which cited three sources familiar with the matter. 

FNV4’s Rationale

Launched to unify software from over 150 suppliers, the project, internally dubbed “FNV4” (fully-networked vehicle), aimed at cutting costs, enhancing vehicle quality, and paving the way for Tesla-like over-the-air updates for Ford’s vehicle lineup. FNV4 was meant to be a “zonal” system that involves the use of bundles of smaller software that control specific vehicle functions which, in turn, communicate with a larger central brain. 

During an appearance at the Fully Charged podcast in 2023, Ford CEO Jim Farley described the status quo with the software being used in the automaker’s vehicles. “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,” Farley said.

Costly End to FNV4’s Run

Ford abandoned the FNV4 project due to soaring costs and delays, Reuters’ sources claimed. The program’s financial toll was steep, as it contributed to the $4.7 billion in software and electric vehicle losses that the automaker incurred in 2023 and the $5 billion in losses that it incurred in 2024. The company also brought in several big names for the initiative, such as Doug Field, a former Apple and Tesla executive, who made $15.5 million last year.

Ford reportedly notified select employees of the project’s cancellation last week via a company video. However, company executives had reportedly finalized the project’s cancellation weeks earlier.

Pivot to New Software Strategies

While Ford is closing the curtains on its FNV4 project, the company’s learnings from the initiative will live on. A Ford spokesperson stated that the automaker will absorb what it learned from the development of FNV4 into the company’s current software system. The automaker is also still focused on delivering advanced electrical architecture through its California-based skunkworks team, which is tasked with developing advanced software and affordable electric vehicles.

“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,” the Ford spokesperson said.

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