Ford Abandons FNV4 Electrical Architecture Project Amid Rising Costs

Ford Motor Company has abandoned its ambitious FNV4 project, which aimed to develop a next-generation electrical architecture to rival those of leading EV manufacturers like Tesla. The decision was driven by rising costs and repeated delays, despite significant investments and the project's importance to Ford's future competitiveness. Ford will now incorporate lessons learned from FNV4 into its existing software, redirecting efforts to a specialized 'skunkworks' team in California focused on developing advanced, affordable, software-driven vehicles. The company continues to face challenges integrating complex software from multiple suppliers, while competitors such as Tesla and BYD benefit from more streamlined, vertically integrated systems. Doug Field, a prominent hire from Tesla and Apple, remains with Ford to oversee these efforts. Analysts have responded with a 'Hold' recommendation on Ford stock, reflecting cautious optimism about the company's strategic shift.