Cloud outages in e-mobility SDV without cloud: Fisker cars will not become expensive junk for now

A fashionable buzzword in the automotive industry is the Software-Defined Vehicle, or SDV, which has been prominent not only this year. In many cases, the software requires a relatively stable connection to the manufacturer's servers, at least for updates. What happens when this is no longer possible? The bankruptcy of Fisker demonstrates this.

In June 2024, the electric car manufacturer Fisker filed for bankruptcy, and the liquidation of the company is now enriched by a story worth contemplating in a quiet moment. It revolves around the software that controls the vehicle and the necessary availability of a continuous connection to the manufacturer's servers.

A Software-Defined Vehicle (SDV) is a vehicle where key functions and systems are primarily controlled by software, rather than solely through fixed hardware installations—a trend that has been evident in the automotive industry for some time, as showcased at numerous technology and automotive engineering fairs. SDV means that the vehicle can be continuously improved and adapted through software updates, similar to smartphones or computers.

However, this also means that in the worst case, a device may cease to function if it does not have a cloud connection to the manufacturer's servers and can no longer be updated. A smartphone without software is not very valuable. And a Fisker, without a connection to the manufacturer's servers, apparently isn't much more than a large, immobile block with four tires. This was a lesson learned by the executives of the company American Lease, who, according to pieces by the authors at TechCrunch, recently intended to take over about 3,300 Fisker Oceans, the SUV model from the automaker, and had let several million US dollars loose for this purpose.

Red Alert

In July 2024, it was agreed that American Lease would pay $46.25 million for the Oceans that Fisker had not yet sold, in order to incorporate the vehicles into their own fleet. Reportedly, this money was crucial for Fisker to initiate bankruptcy proceedings and to remain solvent long enough to settle debts and prepare for the liquidation of assets valued at around one billion US dollars.

Indeed, that was the plan, but on October 7, 2024, American Lease filed an emergency motion to object to the approval of the proposed combined bankruptcy plan and disclosure statement. The motion states, “Since the court-approved sale and the payment and receipt of the first deliveries of Fisker vehicles by the buyer, numerous logistical issues and other challenges have arisen.”

On October 4, representatives from American Lease were informed by the debtors that operational control of the Fisker vehicles technically cannot be transferred from the Fisker server, which the vehicles are currently connected to, to another server owned or controlled by the buyer. This means that the Ocean vehicles, which were supposed to join American Lease's fleet, cannot be operated properly. American Lease is "not amused" by this information, especially since almost the entire agreed-upon sum of money has already been sent to Fisker.

Somehow, an agreement is reached

The bankruptcy plan of Fisker has been judicially approved. In the process, several important issues were clarified. According to investigations by the Department of Justice, Fisker had attempted to pass on the recall costs for fixing defective brakes and a defective water pump in the Oceans to the customers. It has now been agreed that Fisker will bear these costs.

Additionally, a solution was found for maintaining software updates essential for the continued operation of the Ocean. American Lease agreed to provide cloud access for these software updates for five years. Since the data apparently cannot be transferred, it has been agreed to take over Fisker's server infrastructure, at least for the next five years.

When things disappear or lose their function

This temporarily addresses the Fisker case, yet the underlying issue remains. Gamers are reminded of a time when the platform Steam popularized the "Always On" rule years ago, leading to numerous games no longer being playable because their associated servers are no longer operational. Similarly, many devices in the IoT sector have already lost their functionality.

Do you remember the smart home hubs from Revolv or Insteon? Or the Harmony Link remote controls from Logitech that allowed control of home theater systems—incidentally, that was also the only way to provide a remote control for a PlayStation. Remember the Pebble smartwatch whose functionalities were limited following the Fitbit acquisition? The internet and ChatGPT produce many such examples when asked—and more will likely be added in the future.

In the case of a remote control, a household robot, or an online role-playing game, it may be annoying but somehow bearable. In most cases, the investment was manageable. However, when an entire production line comes to a halt due to an unavailable cloud, or your own car can no longer be operated, that is a problem.

The Fisker example should also bring to our attention the vulnerability of hardware and software. Devices and machines that are "Always On" are also "Always vulnerable" if aspects of cybersecurity are neglected. After all, the current solar cycle is slowly reaching its peak, but that's a topic for another time. (sb)