“Automakers Move to Software Recalls in Mass: What’s Happening The number of software recalls in cars has increased from 6% to 15% over the past 5 years. Tesla, Ford and other manufacturers increasingly rely on software updates to improve the functionality of cars.”, — write on: unn.ua
This is reported by the Financial Times, writes UNN.
Details
Every year, car companies rely more and more on software to improve the functionality of their models.
At the same time, they face numerous difficulties related to system updates, which delay the processes of fixing errors and improvements.
According to the US National Highway Traffic Safety Administration, software fixes accounted for 15 percent of US recalls last year, compared to 6 percent five years ago.
BMW’s three software reviews in the U.S. last year beat many competitors, NHTSA data shows.
Ford had the most reviews – 19, followed by Chrysler.
At Tesla, 50 percent of 16 reviews required a software fix. This is not surprising, given that electric vehicles rely much more on software and have fewer parts than internal combustion engines.
But feedback data is only part of a larger software problem. Automakers, like mobile operators, regularly use updates to improve existing features and sell new services to existing customers. For example, Tesla was one of the first to offer regular over-the-air updates and paid subscriptions to its Autopilot self-driving system.
Most manufacturers offer regular updates that cover everything from interior lighting modes and improved battery usage to vital security changes.
It used to be that you could build a car, shrink wrap it, and sell it. Now the car is a living platform. Companies learn as they go
Older automakers are having a harder time than their newer competitors. When Gartner ranked automakers last year based on their digital performance, the top seven included all Chinese and American electric vehicle manufacturers, including Rivian, Tesla and Nio, while traditional manufacturers received an average score of 33 out of a possible 100.
Software problems have delayed recent launches at Volvo and General Motors, among others. Volkswagen’s management was so frustrated with its own software development that it signed a $5 billion deal with Rivian last summer.
Now that more and more automakers are offering their cars fancy screens and infotainment systems, and electric vehicle technology is improving, automakers will have to find new ways to differentiate themselves from their competitors.
Software updates are also a source of income. Accenture estimates that by the 2040s, digital services could generate up to $3.5 trillion annually for automakers, or 40% of all revenue, up from 3% today. Possibilities range from upgrades to heated seats, self-parking to allowing drivers to purchase food, fuel or premium entertainment directly from the car.
We will remind
Tesla reported a decline in annual sales to 1.79 million vehicles in 2024 from 1.81 million in 2023. The decline is attributed to increased competition from Chinese and European manufacturers.