The rise of software-defined mobility poses fundamental challenges to the business models and product strategies of both incumbent automakers and new arrivals. While both are chasing the vehicle of the future, these two groups operate under different philosophies, at different speeds, and with different sets of expertise. Each has plenty to learn from the other on this journey, and neither can master the challenge without the expertise of its counterpart. The Software Intensive Systems (SIS) experts at UL Solutions have identified several key enablers to success in the emerging mobility paradigm, outlined in the new report, ‘A love letter to the automotive industry’.
“This ‘love letter’ is a call for change on both sides,” says Christina Stathatou, Lead Strategic Initiative Software Defined Vehicle (SDV) at UL Solutions. “The automotive industry has fallen into a crisis in Europe, but simultaneously thrives in Asia and Silicon Valley. This is a critical moment, and one that will influence not just cars but also society and the people that work in this industry. We are calling for all players to recognise the foundational strengths that will make the automobile of the future even stronger.”
A balancing act
Successfully delivering the vehicle of the future will require a balance of technology innovation with established safety and quality standards. Within this broad directive, UL Solutions singles out 12 defining characteristics of future vehicles. Trustworthiness tops the list. “This one is quite central,” Stathatou tells Automotive World. “The automobile is moving between two extremes: it’s either very technologically advanced but not terribly safe or too safe and not sufficiently innovative. Established vendors continue to develop safe vehicles, but cannot keep pace with the development speed of newcomers.”
A well-designed modern vehicle is one of high quality that inspires a feeling of safety while also providing a satisfying and inspiring user experience, enabled by advanced driver assistance systems and an immersive on-road experience. While automakers are rushing to introduce new software-based features in their models, many of these systems are plagued by developmental hurdles. Instances of overly intrusive and unreliable automated steering and constant speed or lane departure warnings result in some users simply disabling the features. “You need to balance maturity with experimentation,” she notes. “Today, there is a high level of maturity among the traditional players and a lot of experimentation among the next-generation OEMs. You need to balance that.”
Future vehicle features will be characterised by balance. For instance, automobiles will be developed and built faster and more sustainably than today without sacrificing engineering quality or regulatory compliance. Future vehicles will offer a rich set of software features designed to improve the on-road experience without overwhelming the driver. For this, UL Solutions coins the term ‘software orchestrated’. As Stathatou explains: “Software should be considered as a synonym for seamless on-road experience. It should definitely not be an add-on—it is the orchestrator of the wider system development. Traditional OEMs recognise the importance of software but still think mechanically and structure themselves around mechanical processes.”
As software becomes central to vehicle design, data emerges as a key enabler of innovation. “Data is an important part of developing a car with software-driven features. It provides the new information needed to support the updates,” she says.
The industry will also see a continued shift towards cleaner propulsion, primarily—but not exclusively—battery power. “Other technologies, such as hydrogen, are evolving, so we are keeping an open mind around this,” she adds. “We definitely don’t see the traditional internal combustion engine going extinct. There are some real afficionados out there that will ensure this lives on.”
The recipe
With the vision of balance in mind, the challenge becomes how to realise it. UL Solutions suggests the answer lies in mutual learnings among incumbents and innovators. “Learning does not mean collaboration,” she clarifies. “That’s not always a realistic option.” Learning comes in many different forms, from closely observing to buying a car and analysing it. “Bringing together the understandings of traditional OEMs and next-generation companies, taking the best from the two worlds, is ultimately the recipe for developing the vehicle of the future.”
That means maintaining an open mind and a flexible approach. “You cannot be stubborn or think that you know it all,” she says. “If you consider the solutions others have chosen, you can avoid re-inventing the wheel all the time and that really speeds up development. The Chinese OEMs did exactly this for many years and learned a lot from the European OEMs.”
The ‘love letter’ identifies eight key enablers for OEMs, and Stathatou singles out ‘smart compliance’ as the most transformative among them. This encompasses such steps as harmonising global standards and regulations to create a consistent and predictable environment, leveraging AI and real-time data analytics to streamline compliance processes, and using digital twins to comply with regulations and validation. “Old-school bureaucratic compliance will not work in the future.”
Stathatou also flags the importance of making software a part of both the organisational and the vehicle DNA. “Historically, a company may have been structured according to physical components, but perhaps now it makes more sense to structure according to functionalities. Changing the way you build your product and structure your organisation to facilitate that is essential to survival in this new era,” she adds.
Avoiding the re-invention of the wheel by learning from others, embracing AI-driven analytics, and rethinking organisational structures will enable automakers to move faster, smarter, and more sustainably towards the future.
What marks success?
In this rapidly evolving landscape, OEMs will need to maintain authenticity and vision while simultaneously navigating technological change. “They really need to understand their roots, their identity and what makes them special,” says Stathatou.
Backed by a solid design philosophy, brand character and a clear purpose that combines technology with social and ecological goals, the new breed of automaker will lead the industry into the future. Those that remain open to new ways of working and flexibly adapt to change will be the ones to shape the next stage of the automotive industry’s evolution. “Success in the future will be to develop a software-orchestrated, trustworthy vehicle that reflects its authenticity, the vision behind the company, and embodies all the software characteristics needed to make occupants comfortable,” she summarises.
The Software Intensive Systems experts at UL Solutions offer their ‘love letter’ as a future-proofing blueprint that allows all industry players to find their own missing piece: “This is a tribute to all the automotive companies that have brought us this far,” Stathatou concludes. “It’s our way of supporting them, offering them the tools for survival in this massive transformation. With this, they should be able to create the future of not just the automobile but the automotive industry itself.”
