For decades, carmakers like Ford, GM, and Chrysler (and their European peers like Volvo and Toyota) competed on horsepower, chrome, design, and engineering. Success meant building reliable V8s, stylish coupes, and trucks that could haul a load.
But in today’s market, the battle isn’t just about engines and sheet metal anymore. The car of the future is a “software-defined vehicle” — a machine where much of its personality, safety, and even resale value depends on the quality of its software.
Here’s the problem: the old giants of the industry are struggling to keep up.
Why software matters more than ever
Modern cars aren’t just mechanical. They’re rolling computers. From adaptive cruise control to infotainment, over-the-air updates, and electric power management, the future of cars is increasingly digital.
Tesla, for example, pioneered the idea that a car could improve with age through software updates. Buy one today, and a year later it might drive smarter or even faster after a remote update. Owners are used to their phones working this way, and now they expect the same from cars.
Traditional automakers, however, were built around slow, mechanical development cycles. Designing a new transmission or body style took years. But in the digital world, updates are expected every few months — and that’s a shift the industry hasn’t mastered.
What’s holding them back?
According to recent reports, legacy automakers are facing:
- Outdated development processes — Hierarchies and long timelines don’t mix well with fast-moving software demands.
- Internal hurdles — Engineers who know engines often aren’t the same people who know code. Bridging that gap has proven difficult.
- Supplier dependence — Many automakers rely heavily on outside suppliers for electronics and software, limiting their control.
- Cultural resistance — Car companies built on steel and horsepower aren’t quick to embrace a Silicon Valley mindset.
As a result, companies like GM, Toyota, and Volvo are falling behind Tesla — and even newer EV startups — when it comes to creating vehicles where software is the star.
The irony: they’ve been here before
For readers who remember the 1970s and ’80s, there’s a familiar ring to this story. Back then, Detroit lagged behind in fuel efficiency and reliability while Japanese automakers surged ahead. Now, in the 2020s, history may be repeating — except this time the race is about software, not small engines.
Why this matters for drivers
At first glance, it might sound like a tech-industry issue. But it affects everyday drivers in big ways:
- Resale value — Cars with poor or outdated software age faster in the market.
- Safety & reliability — Software glitches can cause recalls just as serious as mechanical failures.
- User experience — If your infotainment screen crashes, it feels a lot like a bad computer — except it’s inside your $50,000 car.
Can legacy automakers catch up?
The big carmakers aren’t blind to the problem. GM is investing heavily in its Ultifi software platform, Ford is betting on its BlueCruise driver-assist system, and Toyota is reorganizing its software divisions.
But catching up isn’t easy. While Tesla can roll out a new feature overnight, legacy brands still need to restructure decades-old corporate processes.
For many enthusiasts, it raises a deeper question: will the car companies we grew up with still lead in the future, or will new names dominate the industry?
