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BriefCASE: EV Software Challenges - Lessons from Volvo and Volkswagen
Over-the-air (OTA) software updates can improve an electric vehicle's (EV) features and functionalities, but buggy software rollout can have unintended consequences, including malfunction in critical vehicle systems; sometimes it could be life-threatening. The negative sentiment surrounding software issues can also dampen consumer enthusiasm for new electric vehicles' reliability and safety. This is why software development and management are occupying centre stage in automakers' plans. Multiple original equipment manufacturers have delayed launch of new EVs due to issues related to software development. Volvo is one of the latest to announce such issues. In June, the automaker recalled the EX30 electric small sport utility vehicles (SUVs) owing to a software issue. The software update led to a multitude of problems, including blacked-out infotainment screens and emergency braking system randomly activating. Subsequently in June 2024, Volvo informed customers that the EX90, currently facing delays, may be delivered without up to 10 key features. This includes four safety and advanced driver-assistance systems (ADAS) features. Volvo said these features will be added later via an update. Getting its software right will be critical for Volvo to maintain the demand for its EVs. In January-July 2024, Volvo Cars reported a 62% year-on-year increase in sales of fully electric vehicles to 104,890 units. The software challenges largely originated from the adoption of a central computing system that Volvo lacked prior experience in developing. This system, heavily reliant on Nvidia processors, was intended to transform the vehicle into a high-tech computer on wheels, comparable to Tesla's offerings. However, the decision to use a central computing system led to significant debugging challenges, particularly as Volvo's engineering team was not initially equipped with the necessary expertise. E/E backbone to run the software: Volvo's balancing actVolvo initially aimed to deploy a zone architecture in 2022, but this was postponed to 2025. By 2025, Volvo planned to introduce the GPA EV platform, where vehicle interface units (VIUs) would be transformed into zone controllers (ZCUs), thereby eliminating multiple ECUs. The company also intended to integrate the functions of the body/vehicle control unit (VCU) and the autonomy domain controller into a centralized computer. However, Volvo is facing challenges with the implementation of this central computer, particularly concerning security issues when integrating ADAS and VCU into a single central computer. As a result, even if the company rolls out a central computer architecture, it might consider reverting to a domain controller plus zone architecture in future offerings. Volvo's challenges reflect industry-wide software strugglesVolvo is not the only automaker grappling with software-related challenges. Volkswagen faced similar issues with the launch of its ID.3 model in 2022, where initial production vehicles were delayed owing to software glitches. Volkswagen's software subsidiary, Cariad, struggled to resolve these issues, resulting in persistent problems with slow and unreliable software for early customers. The ambitious E3 2.0 software platform, which was to unify the digital architecture across VW Group brands by 2026, is now being completely reworked. This situation highlights the complex and costly nature of integrating cutting-edge software into modern vehicles, an issue that parallels Volvo's own challenges with its EX90 model. Both cases illustrate the critical need for robust software development capabilities as traditional automakers navigate the digital transformation. In addition to software challenges, traditional OEMs face significant performance disparities between their entry-level and premium vehicle segments. Future computational capabilities and memory bandwidth in vehicles are projected to vary greatly, necessitating the development of adaptable and scalable E/E architectures to efficiently manage these variations. Flexibility and scalability in E/E architecture will be crucial for maintaining competitiveness across different market segments. Authored by: Hrishikesh S, Research Analyst, Supply Chain & Technology, S&P Global Mobility |
This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.