Ford CEO on why it's so difficult for legacy car companies to get software right
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They know how to develop software.
B2B is pulling in money hand over fist because fleet owners see value in the recurring monthly subscription. Wall Street analysts seem to think that many fleets buy Ford commercial vehicles for their SAAS offerings.
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.
Note to self: avoid Ford for the next decade.
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"
(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.
F'd-Over, Rebuilt Dodge
Fix Or Replace Daily
Faulty Overheating Rattlebox of Detroit
Fails On Rough Driveways
F'ing Old Rusty Dump
everything in house.