Ford has canceled a big software project for its electric vehicles, according to Reuters. The company stopped the FNV4 project after facing huge money losses and many problems. This decision comes after you’ve seen Ford struggle with its electric car plans for several years now.
The FNV4 project was meant to create a next-generation electrical system for Ford’s cars. It aimed to build a simpler system that would allow for faster updates to vehicle software. The company wanted to make it easier to add new features to your car through software updates, just like your phone gets new features.
Understanding the “Zonal” System
The project had a special design called a zonal architecture. Think of this like having neighborhood managers in a city. Instead of each car function having its own computer, the car would have main controllers for different areas or “zones” of the vehicle.
Traditional cars have many small computers spread throughout. This new system would be more efficient with fewer computers that could handle multiple tasks. It’s like having one smart hub in your home instead of many separate devices.
Why Ford Abandoned the Project
The project became too expensive and faced many delays in development. Ford found it very complicated to make everything work together properly. The company began telling some employees about this decision last week.
A major challenge was working with 150 different suppliers who provided various software parts. It was hard to connect all these different systems together, causing many problems for the development team.
Financial Losses from Electric Vehicle Efforts
Ford has lost $4.7 billion on its electric vehicle division in 2023, and things got even worse in 2024 with losses of ~$5 billion. These numbers come from reports by Cornwall Alliance and RedReefResearch.
For each electric car Ford sold in 2023, the company was losing money – about $64,731 per vehicle. By late 2024, this improved somewhat but was still around $37,000 loss per car, according to RedReefResearch.
- 2023: $4.7 billion loss ($64,731 per vehicle)
- 2024: $5.1 billion loss (improved to about $37,000 per vehicle by Q4)
- Sales volume dropped 9% in 2024
- Revenue fell 35% in 2024
What Happens Next for Ford
Ford is still working on software solutions through its California-based team of experts. The company will focus on improving current systems instead of creating an entirely new architecture.
The company has changed plans for several electric vehicles. It has canceled a three-row SUV and delayed its next electric pickup truck, according to TheGaurdian. However, Ford still plans to introduce a new electric commercial van in 2026, as reported by Ford Media.
- Canceled: Three-row electric SUV
- Delayed: Next-generation electric pickup truck
- Still planned: New electric commercial van (2026)
- Adjusting: Mustang Mach-E battery production
- Reducing: Overall spending on pure electric vehicles
The Bigger Picture
This cancellation shows how difficult it is to develop advanced software for modern vehicles. As you consider the future of cars, this highlights the challenges that even large companies face when trying to innovate.
Ford still believes in an electric future but is taking a more careful approach. The company needs to balance new technology development with the reality of making profitable vehicles that people want to buy.
