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The Dark Side of Software-Defined Vehicles

Rendering of Artificial-Intelligence-Technology-in-Autonomous-Driving-Future-Car-Software-Technology.
Artificial-Intelligence-Technology-in-Autonomous-Driving-Future-Car-Software-Technology.

Summary:

  • Software-defined vehicles have become increasingly prevalent in the automotive industry, offering benefits like remote updates and advanced features
  • Software failures can pose significant risks, as seen in recent cases like WM Motor’s bankruptcy.
  • Cybersecurity is a major concern, with incidents like the CrowdStrike outage highlighting the vulnerability of software-dependent systems
  • Regulations and consumer protection are essential to address the challenges associated with software-defined vehicles.
  • Industry collaboration is necessary to develop and implement solutions for ensuring software reliability and security

The automotive industry is experiencing a tectonic shift in which software has become increasingly pivotal in vehicle functionality. While these software-defined vehicles (SDVs) offer numerous benefits, such as remote updates and advanced features, they also introduce new risks. For example, in early September, Chinese automaker WM Motor filed for bankruptcy, leaving customers stranded with cars unable to receive essential software support. This indeed shows what can happen if the software underpinning these vehicles fails.

The WM Motor bankruptcy is not an isolated incident. A faulty update from CrowdStrike sent Windows computers crashing on July 19, affecting millions of systems. It’s considered one of the largest outages in IT history, showing how vulnerable software-driven systems can be. This event also served as a wake-up call for the electric vehicle (EV) industry, emphasizing the need for robust software security and redundancy. As the trend of heavily relying on software in vehicles increases, these challenges need to be overcome to ensure safe, reliable transportation in the times to come.

The Rise of Software-Defined Vehicles

Three-quarter front view of a 2022 Weltmeister M7 autonomous car
2022 Weltmeister M7 autonomous car. Credit: WM Motors

The automotive industry is undergoing a profound transformation driven by the increasing integration of software into vehicles. This shift, often called the rise of software-defined vehicles, has far-reaching implications for manufacturers and consumers. Modern cars are no longer simply mechanical contraptions that you can fix in your garage; they are increasingly complex systems that rely heavily on software to function. From basic engine control to advanced driver-assistance systems (ADAS), software plays a critical role in every aspect of vehicle operation. Examples of software-controlled features include:

  • Self-driving capabilities: Autonomous vehicles rely on sophisticated software algorithms to navigate roads, detect obstacles, and make decisions in real time.
  • Entertainment systems: Modern cars often feature advanced infotainment systems with touchscreens, voice control, and internet connectivity.
  • Safety features: Software-powered safety systems, such as automatic emergency braking, lane departure warning, and adaptive cruise control, can help prevent accidents.

Deloitte's Perspective on SDVs: Solution Space.

The benefits of SDVs are numerous. One of the most significant advantages is the ability to receive over-the-air updates through technologies such as V2X, which allows manufacturers to introduce new features, improve performance, and address security vulnerabilities without requiring physical visits to a dealership. Additionally, software-defined vehicles offer greater customization options, allowing drivers to personalize their vehicles to their preferences. Finally, software can help improve vehicle efficiency and reduce emissions by optimizing engine performance and controlling various systems.

When Technology Fails

Illustration of the 2024 Crowdstrike outrage
2024 Crowdstrike outrage. Credit: Mashable

The increasing reliance on software in modern vehicles has introduced new risks and challenges. While software-defined vehicles offer many benefits, they are also vulnerable to software failures, which can have serious consequences. A prominent example of the dangers of software failures is the case of WM Motor, a Chinese automaker that filed for bankruptcy due to software issues. The company’s customers were left stranded with cars that lacked essential software support, highlighting the critical role of software in ensuring vehicle functionality.

Weltmeister WM-Motor SUV model
WM Motor applied for Bankruptcy Review in October 2023. Credit: VW Motor

The 2024 Crowdstrike outage disrupted operations for thousands of businesses worldwide and significantly impacted the automotive industry. As many automotive companies rely on Crowdstrike’s cybersecurity solutions, the outage exposed the potential vulnerability of software-dependent systems within the industry, serving as a wake-up call for carmakers. Tesla was affected by the massive IT outage sparked by CrowdStrike’s software update last week, CEO Elon Musk confirmed Friday in a series of posts on the social platform X. In response to an X post by Microsoft CEO Satya Nadella, Musk said the outage “gave a seizure to the automotive supply chain.” 

Even EV companies born in the battery-electric era are not immune from software challenges. For instance, Fisker’s Ocean SUV encountered significant problems, ultimately leading to the company filing for bankruptcy protection despite continuous updates and user interface improvements. The Fisker case underscores the difficulties that manufacturers can face in developing and maintaining complex vehicle software systems. In addition to these high-profile examples, the 2024 CDK Global outage—CDK Global software vendor primarily focused on delivering processing capabilities to automotive dealerships across the U.S. and Canada—affected car dealerships, automakers, and customers. The outage disrupted critical business processes, including inventory management, sales transactions, and customer service. This incident highlighted the interconnectedness of the automotive ecosystem and the potential consequences of software failures.

Challenges of Software SDVs

The potential consequences of software failures in software-defined vehicles SDVs are far-reaching. In extreme cases, software failures can lead to loss of control, safety hazards, and even accidents. Additionally, software-related issues can cause significant inconvenience for drivers, such as unexpected breakdowns, limited functionality, and difficulty accessing vehicle features. 

Diagnosing and repairing software-related issues can be challenging and time-consuming. Unlike traditional mechanical problems, software failures often require specialized tools, knowledge, and expertise. This can lead to delays in repairs and increased costs for vehicle owners.

What the Future Holds for SDVs

Software-defined vehicle rendering.
Software-defined vehicle rendering. Credit: Synapse Partners

As the automotive industry embraces software-defined vehicles, addressing the challenges of ensuring software reliability and security is imperative. The growing complexity of these systems increases the risk of vulnerabilities that malicious actors could exploit. To mitigate these risks, manufacturers must invest in robust cybersecurity measures, conduct rigorous testing, and implement regular software updates.

Furthermore, stronger consumer protection and regulations are urgently needed to safeguard vehicle owners’ interests. Governments and industry bodies must work together to establish clear software quality, safety, and security standards. This includes implementing mandatory testing procedures, requiring manufacturers to disclose software vulnerabilities, and providing consumers with information about the risks associated with software-defined vehicles. To address the challenges and ensure a positive future for software-defined vehicles, several potential solutions can be considered:

  • Redundancy: Incorporating redundant systems and components can help mitigate the impact of software failures. For example, having multiple software modules or hardware components that can perform the same function can reduce the risk of complete system failure.
  • Over-the-air updates: Regular over-the-air updates can address software vulnerabilities, introduce new features, and improve vehicle performance. However, ensuring these updates are secure and do not introduce new risks is essential.
  • User education: It’s crucial to educate consumers about the benefits and risks of software-defined vehicles. Manufacturers can help consumers make informed decisions and use their vehicles safely by providing clear information about their capabilities, limitations, and potential vulnerabilities.

Conclusion

As with all technological advances, with software-defined vehicles, it’s not all plain sailing. The automotive industry and consumers must weigh the benefits of adopting technologies that make vehicles more autonomous while understanding their challenges and potential consequences. Software-defined vehicles from established automakers and startups are becoming increasingly common, and neither are they immune to failures that affect their users. In more extreme cases, SDV owners are left stranded, without manufacturer support, and experiencing a financial loss for having invested in a vehicle rendered unusable by a software failure.