September 4th, 2024

China's Connected Car Collapse Is a Warning for the American Market

The collapse of Chinese EV startups, particularly WM Motor, has left many vehicles without software support, raising concerns about similar risks in the U.S. market and the need for better safeguards.

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China's Connected Car Collapse Is a Warning for the American Market

The recent collapse of several electric vehicle (EV) startups in China serves as a cautionary tale for the American automotive market. Many of these companies, which thrived on government subsidies, have gone bankrupt, leaving their connected cars without necessary software updates and support. Notably, WM Motor, one of the largest failed automakers, ceased software support after filing for bankruptcy in October 2023, affecting around 100,000 vehicles. This situation has left many owners unable to access essential features, as the company’s app is no longer available, and its servers have been unreliable. The issue is exacerbated by the fact that Chinese consumer protection laws do not mandate software support, despite requiring parts and service for ten years. The American market has seen similar issues, such as Tesla's 2021 outage and the bankruptcy of Fisker, which left owners with unresolved software problems. As the U.S. market continues to grow, the potential for similar failures looms, highlighting the need for better safeguards and support for connected vehicles to prevent a repeat of the Chinese experience.

- The collapse of Chinese EV startups highlights risks for connected car owners.

- WM Motor's bankruptcy left many vehicles without software support.

- Chinese consumer protection laws do not cover software updates.

- The U.S. market has experienced similar issues with Tesla and Fisker.

- There is a need for better safeguards in the American connected car market.

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Link Icon 1 comments
By @TheCleric - 4 months
That’s why all of this sort of software should be open standards and user updatable. The company goes under? Install an open source alternative.