FYI: As car companies strive to create “smartphones on wheels,” the bankruptcy of a Chinese EV manufacturer highlights the risks associated with software dependency in vehicles. How can the auto industry ensure long-term software support for their products?
### The Shift to Software-Defined Vehicles
Car companies are setting ambitious goals for developing software features and connected services, aspiring to transform vehicles into “smartphones on wheels.” These modern vehicles will be heavily defined by their software capabilities and will be regularly upgraded remotely. The promise of such functionality is enticing, but it also comes with significant risks.
### Lessons from the Old-School Reliability
Last year, when I upgraded to a Kia EV6, I sold my 2002 Toyota 4Runner. Although the old truck was dated and clunky, one notable advantage was its repairability. I could manage most of the fixes myself, a luxury that’s fading as we move towards more technologically advanced cars.
This ease of maintenance is likely a thing of the past. In the coming era of software-driven vehicles (SDVs), maintenance will increasingly depend on digital updates and remote diagnostics, tasks that individual car owners cannot handle independently.
### An Ominous Sign in China
The downfall of a Chinese automaker serves as a cautionary tale. Shanghai-based WM Motor, which filed for bankruptcy in 2023, is now failing to support even basic software functions, shaking the faith of its customers.
When WM Motor went bankrupt, Richard Qian discovered that he could no longer access essential functions of his EX5 SUV via its smartphone app. This issue was widespread; many WM Motor owners couldn’t log in to the app to control their vehicles’ locks, air conditioners, or even see key information like mileage and charging status. Complaints flooded local automobile review sites, and although WM Motor temporarily resolved some server issues, they haven’t updated their firmware, leaving many cars only partially functional.
### A Parallel in the U.S.
This scenario will sound familiar to those who remember the saga of Fisker Inc., another EV manufacturer that struggled with software delivery before declaring bankruptcy. Fisker EVs, like those from WM Motor, depended heavily on promised software updates that never materialized, leaving owners to fend for themselves. Fisker sold about 20,000 Ocean EVs globally before going under, whereas WM Motor had sold roughly 100,000 cars from 2019 to 2022.
### Implications for Car Owners
Chinese legislation mandates a decade of hardware parts and after-sales service support after a car model is discontinued. However, this doesn’t cover software updates, leaving owners who paid for high-tech features—such as in-car entertainment and remote diagnostics—stranded if the manufacturer fails.
The broader worry is not limited to China. What happens if a major Western automaker goes out of business and discontinues software support for its vehicles? The modern car owner depends on software for everything from battery management to remote access. Without ongoing support, these cars could become virtually unusable, unlike older gas-powered vehicles that can remain functional for decades with basic maintenance.
### The Auto Industry’s Software Challenge
The auto industry has generally not excelled at supporting long-term customers beyond selling parts. There’s an ingrained preference for encouraging consumers to lease or finance new models instead of keeping their current vehicles for extended periods. This mentality needs to shift. Given that the average car on the road today in the U.S. is nearly 13 years old, long-term software support will become increasingly critical.
### The Need for Regulation
Possibly, regulatory intervention may be necessary. Countries like the U.S. must consider legal safeguards to ensure long-term software support to prevent cars from becoming expensive, non-functioning relics. A well-defined legal framework could help avoid the pitfalls we’re seeing with brands like WM Motor and Fisker.
### Conclusion
In summary, as car manufacturers transition to creating “smartphones on wheels,” they must address the long-term viability of these vehicles. Regulatory measures, along with a shift in industry attitudes toward long-term software support, are vital to ensure that modern vehicles don’t turn obsolete overnight.
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William Kouch, Editor of Automotive.fyi
