Imagine turning the ignition key or pressing the start button. But the car doesn't start. The problem is neither the battery nor an engine malfunction... It's just a remote server not responding. In the era of software-defined vehicles, this scenario is no longer theoretical.
Today's automobiles are no longer just mechanical systems. They have also become constantly online software platforms. Many functions, from unlocking doors to remotely operating the air conditioning, from turning on headlights to locating the vehicle, are performed via software. In some models, the car won't even unlock if the manufacturer's mobile app isn't nearby. This situation makes the car's lifespan dependent not only on mechanical durability but also on the survival of the software company behind it.
In the past, car breakdowns were mostly mechanical, and calling a mechanic solved the problem. Today, however, a software-related issue can leave a vehicle immobile in the garage or on the roadside. Moreover, the solution requires a software expert, not a spare part.
Fisker and Other Examples
One of the most concrete examples of this risk is the US-based electric car manufacturer Fisker. The company entered the UK market in May 2023 with its Ocean Sport model. Positioned as a rival to the Tesla Model Y, the all-electric SUV was sold at prices starting from £35,000 (approximately $44,000).
All vehicles were covered by a 6-year or approximately 100,000 km warranty. The battery and powertrain were offered with a 10-year or 160,000 km warranty. However, the company filed for bankruptcy in 2024.
Only 419 Fisker Ocean units had been delivered in the UK. One owner encountered serious software bugs shortly after delivery. As company engineers prepared to collect the vehicle for inspection, the car became completely inoperable. A few days later, the bankruptcy decision was announced. Consequently, the approximately 2,500-kilogram electric SUV remained immobile in the garage for months. The problem was not mechanical but software-related. However, there was no company left to solve it.
Fisker is certainly not the only example. Better Place, founded in 2007, aimed to eliminate range anxiety with battery swap stations. The company was not an automaker; it was an infrastructure and software provider. The entire system was built on central servers, a subscription model, and vehicle authentication software. The flagship model developed for this system was the Renault Fluence Z.E., primarily sold in Israel and Denmark.
However, in 2013, Better Place went bankrupt, embarking on a journey to a "better place." Renault, in turn, closed its Fluence Z.E. production line in Turkey. With the company's bankruptcy, servers were shut down, battery swap stations were deactivated, and the backend software for vehicle authentication and charge management disappeared. As a result, many vehicles became virtually unusable.
Service = IT Department
When a software malfunction occurs in a modern automobile, the user must directly contact the manufacturer. Since the manufacturer has full control over the code, the problem cannot be resolved with a classic service approach. Therefore, your point of contact becomes the IT department. When the company ceases to exist, a significant uncertainty begins for the vehicle owner.
Some user communities attempt to update software through reverse engineering when official support is discontinued. However, these methods also carry significant risks.
The Situation is Even Worse in the Second-Hand Market
More established manufacturers usually try to provide solutions through recall campaigns or over-the-air updates when critical software suppliers go bankrupt. This is because new vehicles are under warranty, so a solution must be offered somehow. However, the situation in the second-hand market is more complex.
For example, a 10-year-old Tesla Model S might be found at an attractive price. However, there's no definite guarantee on how long the manufacturer will continue software support. When software support is discontinued, the vehicle not only faces the risk of malfunction but also becomes vulnerable in terms of cybersecurity. A car that doesn't receive updates can be as risky as an old modem left exposed to the internet.
Moreover, the issue is not limited to new brands. Similar problems are experienced even with old race cars. For instance, running McLaren's 1990s Formula 1 cars requires period-specific laptops, old Windows versions, and special interface hardware. Software and hardware dependency becomes increasingly complex over time.
Standardization Could Be the Solution
The industry is moving towards standardization efforts to reduce this fragility. The Catena-X consortium, which brings together automotive manufacturers, suppliers, and software companies, is developing a common data infrastructure that tracks part and software dependencies throughout a vehicle's lifecycle.
Within this network, common API definitions and digital software component lists are being created. The goal is to enable the deployment of equivalent software modules if a supplier withdraws from the market, thereby extending the vehicle's functional life.
However, despite all these initiatives, automobiles largely remain tied to proprietary and closed ecosystems. There are no binding regulations regarding minimum usage periods for critical software or data continuity. This leaves both manufacturers and vehicle owners exposed to the kind of risks seen in the past with examples like Fisker and Better Place.
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