Ford Ditches Fnv4 Software Project After Reported $10 Billion In Losses

Ford has abruptly cancelled its flagship software architecture project, known as FNV4, which executives once described as “vital” to competing with electric vehicle (EV) leaders like Tesla. The decision, revealed to select employees last week, ends a multi-year effort to modernize the digital foundation of Ford’s vehicle lineup and streamline costly software systems. 

According the CBT News, three sources who spoke with Reuters reported that the project was facing an end due to rising costs and persistent delays. The team designed the now-defunct FNV4 to unify and simplify vehicle software across electric and gasoline models. This design aimed to enable faster over-the-air updates and to create new revenue opportunities through features like driver-assist subscriptions.

Instead, Ford will focus on integrating insights from FNV4 into its existing software platforms and continue development through its Skunkworks team in California, which focuses on building advanced digital systems and affordable EVs. A Ford spokesperson confirmed the pivot, stating the company remains committed to fully connected vehicle experiences across all powertrains, not just EVs.

CEO Jim Farley had appointed Doug Field, a former executive at Tesla and Apple, to lead the FNV4 initiative. Field, one of the company’s top-paid executives, earned $15.5 million in 2023 and worked on delivering a “zonal” architecture that divides vehicle control into modular sections managed by a central computer. 

Ford’s legacy software system, stitched together from dozens of suppliers, has long hindered its ability to deploy updates and ensure quality. In a 2023 podcast, Farley pointed out that Ford faced fragmentation in its software control system, prompting the company to request updates from external vendors like Bosch to modify seat controls. These complexities have contributed to repeated quality issues and industry-leading recall numbers since 2021.

The collapse of the FNV4 project marks a setback in Ford’s race against rivals General Motors and Stellantis in modernizing automotive electronics. Overall, Ford’s losses on EVs and software, partly due to FNV4, totaled  $4.7 billion in 2023 and $5 billion in 2024. 

Still, the company says it remains focused on speed and innovation. Meanwhile, industry experts say that achieving faster and more efficient software integration is a competitive necessity. 

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