Ford CEO Jim Farley on building the electric F-150 — and reinventing Ford

Software Focus

Ford is embracing a software-first approach, aiming to enhance vehicle capabilities through over-the-air (OTA) updates. Jim Farley explains that Ford is transitioning to a model where cars are seen as rolling computers, similar to smartphones, with the potential for regular software upgrades 1. This shift requires a simplification of the technology stack to support continuous updates and improve customer experiences 2. Farley emphasizes the importance of committing resources to support these vehicles for decades, likening future cars to upgradable platforms similar to consumer electronics 3.

We have to get our heads around updating communication modules and other things in the vehicle because we want to take advantage of the pace of change in consumer electronics.

--- Jim Farley

This approach not only enhances the longevity of vehicles but also aligns with the evolving digital ecosystem.

   

Chip Strategy

The global chip shortage has significantly impacted Ford, prompting innovative strategies to address the issue. Jim Farley reveals that Ford is redesigning components to utilize more accessible and modern chips, moving away from outdated technologies 4. By insourcing autonomy and software, Ford aims to gain expertise in silicon design and AI processing, which are crucial for future vehicle functionalities. Farley highlights the need for a robust supply chain, including direct deals with foundries, to mitigate risks associated with just-in-time manufacturing.

We can't just run a just-in-time manufacturing system and have exposures like we do today.

--- Jim Farley

These efforts are part of Ford's broader strategy to modernize its operations and adapt to the rapidly changing technological landscape.