connected cars

what-happens-to-a-car-when-the-company-behind-its-software-goes-under?

What happens to a car when the company behind its software goes under?


Connected car servers won’t be online indefinitely, and startups often go bust.

Fisker managed to deliver some Oceans before it sank. But are those owners beached now? Credit: Angel Garcia/Bloomberg via Getty Images

Imagine turning the key or pressing the start button of your car—and nothing happens. Not because the battery is dead or the engine is broken but because a server no longer answers. For a growing number of cars, that scenario isn’t hypothetical.

As vehicles become platforms for software and subscriptions, their longevity is increasingly tied to the survival of the companies behind their code. When those companies fail, the consequences ripple far beyond a bad app update and into the basic question of whether a car still functions as a car.

Over the years, automotive software has expanded from performing rudimentary engine management and onboard diagnostics to powering today’s interconnected, software-defined vehicles. Smartphone apps can now handle tasks like unlocking doors, flashing headlights, and preconditioning cabins—and some models won’t unlock at all unless a phone running the manufacturer’s app is within range.

However, for all the promised convenience of modern vehicle software, there’s a growing nostalgia for an era when a phone call to a mechanic could resolve most problems. Mechanical failures were often diagnosable and fixable, and cars typically returned to the road quickly. Software-defined vehicles complicate that model: When something goes wrong, a car can be rendered inoperable in a driveway—or stranded at the side of the road—waiting not for parts but a software technician.

It’s already happening

Take the example of Fisker. In May 2023, the California auto brand arrived in Britain with its Ocean Sport before filing for bankruptcy just one year later. Priced from £35,000 ($44,000)—although top-spec trims pushed the price to £60,000 ($75,000)—the all-electric Tesla Model Y rival featured tech including a partially retracting roof and a rotating BYD-like touchscreen. All cars also carried a six-year/62,000-mile (99,779 km) warranty, with the battery and powertrain covered for 10 years or 100,000 miles (160,934 km).

Before Fisker’s 2024 bankruptcy, just 419 Fisker Oceans made it into British driveways. One unfortunate buyer, a marketing manager from Southampton, experienced the worst of the brand’s teething troubles. After taking delivery, her Ocean was plagued by persistent software glitches. Following a call to Fisker, engineers were dispatched to collect the vehicle for repairs, but when the car was due to be collected, it refused to start. Mere days later, Fisker declared insolvency, leaving the Ocean stranded as a 5,500 lb (2,500 kg) driveway ornament for the next ten months with no solution in sight.

Preceding Fisker, there was Better Place. Founded in 2007, Better Place wasn’t a car manufacturer but an EV infrastructure and software company that promised to solve range anxiety through battery-swap stations. Its entire model relied on centralized servers, subscriptions, and proprietary software to authenticate vehicles and manage battery exchanges. The flagship car for this system was the Renault Fluence Z.E., an electric sedan sold primarily in Israel and Denmark.

Better Place filed for bankruptcy in May 2013 after burning through $850 million, leading to Renault closing the Fluence Z.E’s Turkish assembly line. Servers were shut down, battery-swap stations stopped operating, and backend software used for authentication, charging, and fleet management disappeared, leaving many cars bricked.

A man stands next to a compact electric car, inside a white-painted facility

Better Place founder and CEO Shai Agassi showing off a battery-swap station for electric taxis in Tokyo on April 26, 2010. Three years later, the company was done.

Credit: KAZUHIRO NOGI/AFP via Getty Images

Better Place founder and CEO Shai Agassi showing off a battery-swap station for electric taxis in Tokyo on April 26, 2010. Three years later, the company was done. Credit: KAZUHIRO NOGI/AFP via Getty Images

These cases highlight a broader shift in the auto industry, where long-term ownership is increasingly dependent not just on mechanical durability but on continued access to proprietary software and manufacturer support.

“When a modern car’s software misbehaves, you don’t fix it yourself—you call the manufacturer,” said Stuart Masson, founder and editor of The Car Expert. “They control the code. At that point, you’re not dealing with a traditional service department so much as an IT help desk.”

That dependence, Masson warned, becomes a critical failure mode when the manufacturer disappears. “Sooner or later, every owner risks a Fisker-style scenario, where the company is gone and there’s nothing you can do about it.”

While informal owner communities have begun attempting to reverse-engineer and distribute unofficial software updates, Masson is blunt about the risks. “You’re trusting that someone on the Internet actually knows what they’re doing,” he said. “If they don’t, the consequences might not be that Android Auto simply stops working but instead an airbag deploying at 70 mph.”

While buying a second-hand Fisker in the UK is a high-risk move, more established manufacturers generally have contingency plans if a critical software partner goes under. In practice, that usually means issuing recalls or pushing over-the-air fixes to affected vehicles. Warranty coverage should handle most issues for newer cars, but the story gets murkier on the used market.

Out of warranty

Take a decade-old Tesla Model S, for example: You might snag one at a bargain price, but there’s no guarantee Tesla will continue supporting it indefinitely. When a manufacturer drops software support, the car isn’t just at risk of breaking down—it becomes a potential cybersecurity liability. In a world where vehicles are increasingly defined by their code, running unsupported software is akin to leaving your router exposed to the Internet. You may have a functioning car today, but there’s no telling when—or how—it could stop running.

“Many teams, such as McLaren, who have F1 cars from the 1990s, require a 1990s-era laptop running an old Windows operating system, along with specialized interface hardware, for maintenance and to start the car,” Masson said. “We are up against time here, but it could be that brands like Tesla release its code, allowing people to use it. Who knows?”

The problem isn’t solely on the consumer; manufacturers shoulder a significant portion of the risk as well. One potential mitigation is standardization. Enter Catena-X, a collaborative data network connecting OEMs, suppliers, and IT vendors. By creating traceable digital records for parts and software—and standardizing data models and APIs for interoperability—Catena-X aims to make supply chains more resilient and software dependencies less catastrophic when a critical partner disappears.

When asked how OEMs can map software dependencies and mitigate vendor insolvency, Catena-X Managing Director Hanno Focken told Ars that “Catena-X supports software bills of materials and standardizes certain components to make software replaceable, plus a marketplace and open-source reference implementation helps OEMs find alternative vendors.”

The industry also shares responsibility in defining minimum operational lifespans for vehicle software. “As an association, Catena-X can facilitate shared industry commitments and consensus (e.g., data retention policies like a 10-year battery passport requirement), but it does not act as a regulator setting mandatory lifespans,” added Focken.

The lesson is clear: In today’s cars, the engine or electric motor isn’t always what keeps you moving—the software does. When that software vanishes with a bankrupt company, your car can go from daily driver to expensive paperweight overnight. And in the age of software-defined vehicles, owning a car increasingly means betting on the survival of its code. When that code dies, the driveway or highway—not the repair shop—becomes the final stop.

What happens to a car when the company behind its software goes under? Read More »

ban-on-chinese-connected-car-software-is-almost-ready

Ban on Chinese connected-car software is almost ready

However, the ban, as written, is not absolute. Companies can seek authorization to import software or hardware that would otherwise be outlawed, but the request would need to satisfy the US government and possibly be subject to conditions.

There are also exemptions for software for vehicles older than model year 2027 and hardware for vehicles older than model year 2030, including parts imported for warranty or repair work. (The government points out that retroactively applying the new rule would be a little pointless as any harm would already be done by vehicles that had compromised systems that predate it going into effect.)

And the final rule would only apply to light-duty vehicles. Anything with a gross vehicle weight rating of more than 10,000 lbs is exempt but will be dealt with in “a separate regulation tailored to the commercial sector in the coming months.”

Auto industry suppliers probably face the most disruption as a result of the new rule—just the presence of a Chinese-made module in a larger system is enough to trigger the import ban. But there should be little disruption to the US car market, at least for now.

Since the rules only go into effect from model year 2027, the few Chinese-made vehicles on sale in the US—models from Polestar, Volvo, Lincoln, and Buick—may remain on sale. However, Polestar’s Chinese ownership may prove somewhat of a sticking point compared to Ford and GM. Ars notes that lawyers representing Polestar met with the Commerce Department last week—we reached out to the automaker for a comment and will update this piece should we hear back.

Ban on Chinese connected-car software is almost ready Read More »

whistleblower-finds-unencrypted-location-data-for-800,000-vw-evs

Whistleblower finds unencrypted location data for 800,000 VW EVs

Connected cars are great—at least until some company leaves unencrypted location data on the Internet for anyone to find. That’s what happened with over 800,000 EVs manufactured by the Volkswagen Group, after Cariad, an automative software company that handles much of the development tasks for VW, left several terabytes of data unprotected on Amazon’s cloud.

According to Motor1, a whistleblower gave German publication Der Spiegel and hacking collective Chaos Computer Club a heads-up about the misconfiguration. Der Spiegel and CCC then spent some time sifting through the data, with which allowed them to tie individual cars to their owners.

“The security hole allowed the publication to track the location of two German politicians with alarming precision, with the data placing a member of the German Defense Committee at his father’s retirement home and at the country’s military barracks,” wrote Motor1.

Cariad has since patched the vulnerability, which had revealed data about the usage of Skodas, Audis, and Seats, as well as what Motor1 calls “incredibly detailed data” for VW ID.3 and ID.4 owners. The data set also included pinpoint location data for 460,000 of the vehicles, which Der Spiegel said could be used to paint a picture of their owners’ lives and daily activities.

Cariad ascribed the vulnerability to a “misconfiguration,” according to Der Spiegel, and said there is no indication that anyone aside from the publication and CCC accessed the unprotected data.

Whistleblower finds unencrypted location data for 800,000 VW EVs Read More »

ban-on-chinese-tech-so-broad,-us-made-cars-would-be-blocked,-polestar-says

Ban on Chinese tech so broad, US-made cars would be blocked, Polestar says

Polestar has more than a few issues with the proposed rule, according to its public comment. For one, the definition is too broad and “creates crippling uncertainty for businesses.” A better-defined list would be helpful here, it says.

Polestar also says that “if a large portion of manufacturing or software development is occurring outside of the country of a foreign adversary, mere ownership should not be the determinative factor for applying the various prohibitions within the Proposed Rule.” Polestar is a US-organized company and a subsidiary of a UK publicly limited company that is listed on the NASDAQ exchange in New York. Its HQ is in Sweden, and seven out of 10 board members are from Europe or the USA. It builds Polestar 3 SUVs in South Carolina and will build the Polestar 4 in South Korea from next year. In fact, out of 2,800 employees, only 280 are based in China, Polestar says.

With the company’s “key decision-makers” being in Sweden, there is little reason to believe the national security concerns apply here, the company says, saying that the US Commerce Department should consider whether it has gone too far.

Polestar may be the most affected automaker by the new rule, but it is not the only one. Last month, the Commerce Department told Ford and General Motors that imports of the Lincoln Nautilus and Buick Envision—both of which are made in China—would also have to cease under the new rule.

Ban on Chinese tech so broad, US-made cars would be blocked, Polestar says Read More »