In a previous post, I expressed skepticism about software-defined vehicles. While I discussed the potential risks of manufacturers halting software updates, I overlooked a critical factor: bankruptcy.
The collapse of Chinese automaker WM Motor highlights this concern. Despite having over 160,000 customers, the company’s bankruptcy has left owners stranded with inoperable vehicles.
Without access to cloud based services, features like climate control, audio, and range monitoring have become unusable. This incident underscores the vulnerability of relying solely on smartphone apps for vehicle access and control, especially when the manufacturer may cease operations.
The WM Motor case serves as a stark reminder of the potential consequences of placing such reliance on technology. While software-defined vehicles offer numerous benefits, including over-the-air updates and advanced features, they also introduce new risks. If a manufacturer goes bankrupt, customers may find themselves with vehicles that are essentially useless.
Furthermore, even if a company remains solvent, there is no guarantee that it will continue to support older models with software updates. This issue is particularly concerning for electric vehicles (EVs), which often rely heavily on software for their operation. Features such as battery management systems, navigation, and charging capabilities are all controlled by software. If a manufacturer ceases to provide updates for an EV, it could significantly reduce its functionality and value.
To mitigate these risks, it is essential for consumers to carefully consider their options when purchasing a software-defined vehicle. They should research the financial stability of the manufacturer and inquire about the company’s commitment to long-term software support. Additionally, consumers may want to explore alternative options, such as vehicles with more traditional hardware-based systems.
The automotive industry is undergoing a seismic shift, with software-defined vehicles (SDVs) rapidly becoming the norm. While this transition promises greater innovation and customization, it also introduces new challenges, particularly for consumers and smaller manufacturers. One significant concern is the long-term sustainability of these vehicles, especially when considering the potential for software-related issues and the risks associated with relying on companies that may not survive.
As the Rest of World article highlights, the increasing prevalence of SDVs has implications for both consumers and manufacturers. Customers who purchase vehicles from companies that subsequently cease operations may find themselves facing difficulties in accessing after-sales services, spare parts, and software updates. This is especially problematic given the critical role that software plays in the functionality of modern electric vehicles (BEVs). While there are some legal protections in place for hardware components, software-related issues remain largely unaddressed.
Moreover, the shift towards SDVs has created a competitive world where smaller manufacturers face significant challenges. These companies often struggle to attract customers due to their lower sales volumes and lack of established brand recognition. To overcome this, they must offer compelling arguments and innovative features to entice buyers away from more traditional options. However, even with these efforts, there is no guarantee of success, as evidenced by the struggles of some BEV startups.
The reliance on software also introduces risks for consumers, as demonstrated by the recent experiences of Volvo customers. Despite partnering with Google for its operating system, Volvo’s EX90 flagship has encountered issues with key recognition and missing features.
This suggests that even established automakers with strong partnerships may struggle to deliver reliable software-defined vehicles. The trend towards SDVs is driven by several factors, including the potential for increased revenue streams and the creation of a “too big to fail” mentality.
By making their vehicles heavily reliant on software, automakers can position themselves as essential providers of transportation services. This could make it easier for them to secure government support in times of financial difficulty. However, this reliance on software also raises concerns about the long-term sustainability of the automotive industry and the potential for disruptions to consumer services.
