Note: The story has been updated to include a comment from a Ford spokesperson.
Ford Motor Co. F has reportedly terminated the development of an advanced electrical architecture that powers modern EVs from the likes of Tesla Inc. TSLA
What Happened: The company was focused on developing the technology and had invested a lot of resources in developing the project, internally named FNV4, Reuters reported on Thursday, citing three sources familiar with the matter.
However, the increasing costs as well as the delays in development forced the Detroit-based automaker to abandon the project, the report says. The goal for the project was to add more profitable features in both EVs as well as ICE-powered vehicles, and mitigate costs.
A spokesperson for the company told Benzinga that it’s not ending the project entirely. Ford is merging two electrical architectures into a single system for all powertrains, bringing connected digital experiences to more vehicles. Key elements of FNV4, like centralized software control and OTA capabilities, are being integrated into this unified platform, the company spokesperson said.
"We are committed to delivering fully connected vehicle experiences across our entire lineup, regardless of powertrain, while many others in the industry are bringing the most advanced tech only to electric vehicles," the spokesperson dded.
A major challenge for companies like Ford is to integrate their complex software with the proprietary computer code from its various suppliers, the report suggests.
If successful, the tech could allow Ford to provide incentives to customers to pay for capabilities like Driver Assistance Systems via OTA updates through subscriptions.
Why It Matters: The report comes in as Ford is gaining ground in the U.S. domestic EV market. The company was one of the top companies in the sector in Q1 2025.
The company also manufactures over 80% of its vehicles in the U.S., which could help the company ride the waves of uncertainty due to the Trump administration's auto tariffs.
Interestingly, Ford recently announced it will delay the planned price hike of its vehicles in the U.S. as it continues to work closely with the Trump administration, according to CEO Jim Farley.
The company has also halted shipments of some of its models to China, in light of the retaliatory tariffs imposed by the CCP on American products, which are as high as 150% in some instances.
Price Action: F currently trades for $10.01 on the NYSE, according to Benzinga Pro data.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
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