This is so often missed by people in the auto industry, I am glad he is saying something. But this is not just limited to vehicle components within hardware of cars; this also will also often apply to the companies entire tech stack. By this I mean vehicle ordering systems, parts management systems, dealer systems... etc.
The auto industry for years has had a "Vendor Solution" problem which has created insurmountable software and hardware tech debt or dependencies. Some manufactures are using systems dating back to the 90's in production. Companies will deploy newer better DB's and never migrate off the old solutions and this leap frog happens multiple times so you have 3 or 4 "Generations" old infra. Most of this is the result of farming out or contracting vendors to build a system, deploy a system, and it just stays. After which all of the knowledge vanishes about how it was built, then business owners want updates and no one know how to, so its farmed out to figure out how to fix it... this cost $$$ and time, there is scope creep, and the cycle repeats.
This is starting to change, but Farley's right in describing this is a HUGE problem the public doesn't really see beyond just the vehicle systems. If you are unsure if this is true, this is why the CDK Global hack essentially froze all vehicle sales and dealer pay, CDK is a huge DMS (Dealer Management Systems) provider that dealers pay to do their parts and sales systems.
It was profitable to do this in the 90's, 2000's, and 2010's due to globalization and smaller digital foot printing, but that has all changed with IOT, Smarter sensors and controllers, and consumer & CEO expectations of product advancements.
This is why Ford is on a hiring spree for software developers and why they restored the old train station in Detroit to give them a cool place to work. Farley believes that it is a strategic advantage for the only other car company writing all their own software and that's Tesla.
Sure, but if they pay their devs below market and constrain them to traditional corporate tomfoolery (Macs, but locked down; week-long waits to install software; Gantt chart project management; no engineering-driven career tracks; etc), then I doubt they'll go far. This is what GM did when they absorbed Cruise, and people, correctly, left in droves
Absolutely agree with Farley’s take. Legacy automakers are drowning in a sea of fragmented software, making it nearly impossible to innovate quickly. Tesla’s vertically integrated model clearly shows the benefits of having all systems under one roof—faster updates, better integration, and more control. Ford stepping up to insource their electric architecture is a bold move, but it’s exactly what’s needed to stay competitive. It’s a tough transition, but if they pull it off, it could set a new standard in the industry. Here’s to hoping other traditional car companies follow suit and prioritize software like Tesla has!
> just remember car companies have never written software like this, ever, so we're literally writing how the vehicle operates the software to operate the vehicle for the first time ever.
I had an early '00s era Focus that refused to die. It just ran and ran and ran. Very basic car but very reliable. Finally scrapped it due to rust a few years ago. Engine still ran great.
Yeah, but they can design door handles, turn signals and windshield wipers that work. Tesla may be good at writing software, but their car designs and UI suck.
I think the winner here is whoever builds “Android for cars”. An vehicle OS that car makers can safely adopt and that exposes an api and module/app system to change or replace functionality.
Honestly, I can't believe it took so long for Farley to come out and say it. Lacking in-vehicle software integration due to a "software is a cost center" mindset has been a problem for a long, long time and Tesla, correctly, spent a lot of money and effort owning as much of the stack as possible to avoid these problems.
Forgive the parent poster. The Taurus was discontinued in 2018, and the rebadged Mondeo isn't available in the US. A Focus does exist, and won't be sold after 2025. So, pretty insignificant.
This is so often missed by people in the auto industry, I am glad he is saying something. But this is not just limited to vehicle components within hardware of cars; this also will also often apply to the companies entire tech stack. By this I mean vehicle ordering systems, parts management systems, dealer systems... etc.
The auto industry for years has had a "Vendor Solution" problem which has created insurmountable software and hardware tech debt or dependencies. Some manufactures are using systems dating back to the 90's in production. Companies will deploy newer better DB's and never migrate off the old solutions and this leap frog happens multiple times so you have 3 or 4 "Generations" old infra. Most of this is the result of farming out or contracting vendors to build a system, deploy a system, and it just stays. After which all of the knowledge vanishes about how it was built, then business owners want updates and no one know how to, so its farmed out to figure out how to fix it... this cost $$$ and time, there is scope creep, and the cycle repeats.
This is starting to change, but Farley's right in describing this is a HUGE problem the public doesn't really see beyond just the vehicle systems. If you are unsure if this is true, this is why the CDK Global hack essentially froze all vehicle sales and dealer pay, CDK is a huge DMS (Dealer Management Systems) provider that dealers pay to do their parts and sales systems.
It was profitable to do this in the 90's, 2000's, and 2010's due to globalization and smaller digital foot printing, but that has all changed with IOT, Smarter sensors and controllers, and consumer & CEO expectations of product advancements.
This is why Ford is on a hiring spree for software developers and why they restored the old train station in Detroit to give them a cool place to work. Farley believes that it is a strategic advantage for the only other car company writing all their own software and that's Tesla.
Sure, but if they pay their devs below market and constrain them to traditional corporate tomfoolery (Macs, but locked down; week-long waits to install software; Gantt chart project management; no engineering-driven career tracks; etc), then I doubt they'll go far. This is what GM did when they absorbed Cruise, and people, correctly, left in droves
Ford has a suite of connected software services for commercial vehicles called Ford Pro. It has been generating billions in profit for years.
They know how to develop software.
Absolutely agree with Farley’s take. Legacy automakers are drowning in a sea of fragmented software, making it nearly impossible to innovate quickly. Tesla’s vertically integrated model clearly shows the benefits of having all systems under one roof—faster updates, better integration, and more control. Ford stepping up to insource their electric architecture is a bold move, but it’s exactly what’s needed to stay competitive. It’s a tough transition, but if they pull it off, it could set a new standard in the industry. Here’s to hoping other traditional car companies follow suit and prioritize software like Tesla has!
> just remember car companies have never written software like this, ever, so we're literally writing how the vehicle operates the software to operate the vehicle for the first time ever.
Note to self: avoid Ford for the next decade.
You mean every legacy car makers out there.
Funfact:
There is a German saying: "Ford kaufen, Ford fahren, Ford schmeißen"
which translates to
"Buy a Ford, drive a Ford (or "drive away"), throw away [a Ford]."
As Ford sounds the same as "fort" and "fortfahren" -> "drive away", "fortschmeißen" -> "throw away"
The American version of this is “FORD - Fix or Repair Daily.”
I had an early '00s era Focus that refused to die. It just ran and ran and ran. Very basic car but very reliable. Finally scrapped it due to rust a few years ago. Engine still ran great.
Also: Found On Road, Dead
(I actually like Ford. I have owned a few Mustangs and an F150 which have all been excellent vehicles. (Mechanically, reliability. )
Though I have bought only Infiniti's since 2015 ish.
There are many more:
F'd-Over, Rebuilt Dodge
Fix Or Replace Daily
Faulty Overheating Rattlebox of Detroit
Fails On Rough Driveways
F'ing Old Rusty Dump
F*ked on race day
you should have avoided it all along, along with pretty much every other car - the whole industry (minus Tesla) is exactly the same
Yeah, but they can design door handles, turn signals and windshield wipers that work. Tesla may be good at writing software, but their car designs and UI suck.
I think the winner here is whoever builds “Android for cars”. An vehicle OS that car makers can safely adopt and that exposes an api and module/app system to change or replace functionality.
The best code is no code. Give me manual seat adjustment, rolling window, temp knob and wiper stalk over yer damn rolling iphone.
But give me headers to connect after market control, or tinker with Arduino control.
Hard to comply with ecall, automatic braking, etc with no code.
Sounds like a win to me.
Honestly, I can't believe it took so long for Farley to come out and say it. Lacking in-vehicle software integration due to a "software is a cost center" mindset has been a problem for a long, long time and Tesla, correctly, spent a lot of money and effort owning as much of the stack as possible to avoid these problems.
the integrated take tesla takes is the same approach spacex takes and was able to beat competitors.
everything in house.
Ford barely even makes cars anymore. All trucks and SUVs besides the Mustang.
Focus? Taurus?
Forgive the parent poster. The Taurus was discontinued in 2018, and the rebadged Mondeo isn't available in the US. A Focus does exist, and won't be sold after 2025. So, pretty insignificant.