Modern cars, often referred to as “software-defined vehicles,” are technological marvels, promising over-the-air updates and continuous feature evolution. However, behind this alluring facade lies a colossal challenge: the ability to keep these systems operational and secure for 10 to 15 years. For giants like BMW, Tesla, Mercedes, and Volkswagen, the real test begins once the transaction is complete.
A Car That Becomes a Computer for the Long Haul
The digital revolution has transformed our vehicles into true computers on wheels. Software-defined vehicles (SDVs) are no longer just mechanical machines; they have morphed into central computing platforms capable of receiving over-the-air updates. This innovation, akin to that of smartphones, offers a multitude of enhancements, ranging from optimized navigation to advanced driver-assistance systems.
However, the longevity of these technologies poses a problem. Unlike smartphones, which are generally replaced every three to four years, a car can remain in circulation for over a decade. This means manufacturers must ensure the software, servers, and security systems function properly throughout this period. In short, the challenge is not just technical, but also economic and logistical.
Maintenance Comes at a Cost
The financial challenge is crucial. According to Umair Siddiqui, an analyst at SBD Automotive, the investments required to develop these systems are enormous. Initial costs include hiring specialized engineers, establishing data storage infrastructures, and implementing cybersecurity measures. The benefits, however, only materialize after several years. For large manufacturers, only large-scale production can offset these costs.
BMW exemplifies this paradox. Since 2018, the German brand has managed around 12 million vehicles capable of receiving over-the-air updates. On its new electric platform, the “Neue Klasse,” designed to equip around forty models by 2027, computing power has been optimized to support prolonged software evolution. For instance, BMW has chosen not to replace older 3G or 4G modems when networks evolve, but to allow cars to use the driver’s smartphone connection. This flexibility is a pragmatic response to the growing complexity of the issue.
Aging Connectivity, Security to Maintain
Mobile connectivity evolves rapidly, with technologies like 3G disappearing and 4G eventually becoming outdated. For manufacturers, this means two choices: replace the installed hardware in vehicles—a costly operation—or gradually phase out certain services. Pedro Pacheco, an analyst at Gartner, notes that some manufacturers have stopped maintaining their older connected systems, leading to the cessation of updates and security patches.
A connected car without regular updates becomes vulnerable. Like a computer without antivirus, it is exposed to security flaws. International regulations require manufacturers to implement a cybersecurity management system and conduct ongoing audits. Each patch must be tested, validated, and then deployed across millions of vehicles—a colossal task.
Tesla, a pioneer in this field, has integrated advanced security mechanisms such as data encryption and digital software signatures. However, managing a global fleet that includes models launched as early as 2018 is already a considerable technical challenge. Meanwhile, Mercedes regularly deploys updates on around two million vehicles equipped with its MBUX multimedia system. While these enhancements support a vehicle’s resale value, the brand acknowledges that older models are gradually reaching their hardware limits.
Connected Cars: A Deep Industrial Revolution
This challenge goes beyond technology. It also touches on the internal organization of automotive groups. At Volkswagen, software development has been entrusted to a dedicated entity called Cariad. The goal is to create a common platform for all brands in the group. However, cultural differences between Audi, Porsche, and Volkswagen, as well as reliance on large external suppliers, have slowed this initiative. Delays observed on certain generations of electric models illustrate this complexity.
Historically, manufacturers purchased electronic components from specialized suppliers. Today, they must work closely on software, updates, and cybersecurity. This profoundly changes industrial relationships and requires a shift in mindset within companies.
New Economic Models: An Uncertain Future
To offset the costs associated with long-term maintenance, some manufacturers are considering adopting subscription-based solutions for accessing certain functions. Tesla already charges for software options like advanced driver assistance or connected services such as video streaming. BMW and Audi also offer certain functions that can be activated after purchase, allowing revenue to be spread over the vehicle’s lifespan.
However, for this model to work, it is essential to have a sufficiently large base of compatible vehicles. The more unified and high-volume the software platform, the more the costs of maintenance and hosting can be amortized. This raises a crucial question: will manufacturers be able to maintain these computers on wheels for fifteen years without blowing their budgets?
In Summary
- Connected cars require complex long-term software maintenance.
- Initial costs for manufacturers are high, with uncertain returns on investment.
- Aging mobile connectivity poses challenges for maintaining services.
- Subscription-based economic models are emerging to offset costs.
- Industrial relationships are evolving with increased collaboration between manufacturers and suppliers.
Official Sources:
