Ford Motor (NYSE:F) said today that it named Apple veteran Peter Stern to lead what is a newly formed group called Ford Integrated Services, which will create and market software-enabled services for Ford Blue, Model e and Ford Pro. Stern served as vice president of Services at Apple for more than six years through January 2023. Ford said, “he was a driving force behind the launch of Apple’s portfolio of services, including Apple TV+, Apple News+, Apple Arcade, Apple Fitness+, MLS Season Pass and Apple One.” Ford’s electric business – Model e – is forecast to lose ~$4.5 billion during 2023. It lost $1.2 billion during Q2 or $40,000 a vehicle. (AutoInformed: Ford Motor Posts $3.8B Q2 Earnings on 12% Revenue Increase)
Ford and other former members of the old-style auto blacksmithing business – cast it, stamp it, weld it, machine it and put it together – has been confronted with the need to cost effectively deal with so-called connected vehicles. The traditional way of pitting suppliers against one another and buying at lowest cost has failed since the software of the many individual computer modules on current vehicles isn’t always compatible with other computerized sub-systems – creating in effect an electronic Tower of Babble.
Click for bio.
There are multiple computers and millions of lines of software code in current cars. Impending autonomous driving vehicles make the issue more acute. Worse, software recalls are now common and require the cooperation – or the permission of the companies that own the software. As a result, the auto industry is now bringing software development and ownership back in house. Not exactly a new a concept – vertical integration.(AutoInformed: Ford Changes Supply Chain and Product Development Execs).
In March of 2023, Ford established Latitude AI, a wholly owned subsidiary, to develop “a hands-free, eyes-off-the-road automated driving system.” The move was partially the result of a Q3 2022 decision that saw Ford shift its capital spending from the L4 advanced driver assistance systems being developed by Argo AI to internally developed L2+/L3 technology. That move was forced on Ford when Argo AI failed to attract new investors needed for ongoing development. Ford recorded a $2.7 billion non-cash, pretax impairment on its investment in Argo AI, resulting in an $827 million net loss for Q3 of 2022. (Click here for the SAE Autonomous Driving Levels cited above.)
Stern, who starts at Ford Motor today reporting to President and CEO Jim Farley, will:
- Build out the business tied to Ford’s BlueCruise hands-free highway driving system and productivity and safety/security services, including those from the Ford Pro Intelligence business.
- Create and deliver new saleable services.
- Lead services marketing, certain out-of-vehicle customer experiences and Ford Next.
Ford claims it has ~550,000 paid software and services subscribers, with Ford Pro commercial customers today accounting for more than 80% of them. Clearly it is anticipating a fight in the personal use segments. (AutoInformed: Ford Buys Electriphi to Provide Ford Pro Commercial Customers with Charging and Energy Management)
Before joining Apple in 2016, peter Stern was Time Warner Cable’s EVP and chief product, people and strategy officer. He began his career at McKinsey & Co. Stern earned a juris doctor degree from Yale Law School, where he was an editor of the Yale Law Journal and author of the book Connecticut Prisoners’ Rights. He subsequently became a member of both the New York and Connecticut bars. Stern has a bachelor’s degree in music and English from Harvard University.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Apple Software Veteran Peter Stern Joins Ford Motor
Ford Motor (NYSE:F) said today that it named Apple veteran Peter Stern to lead what is a newly formed group called Ford Integrated Services, which will create and market software-enabled services for Ford Blue, Model e and Ford Pro. Stern served as vice president of Services at Apple for more than six years through January 2023. Ford said, “he was a driving force behind the launch of Apple’s portfolio of services, including Apple TV+, Apple News+, Apple Arcade, Apple Fitness+, MLS Season Pass and Apple One.” Ford’s electric business – Model e – is forecast to lose ~$4.5 billion during 2023. It lost $1.2 billion during Q2 or $40,000 a vehicle. (AutoInformed: Ford Motor Posts $3.8B Q2 Earnings on 12% Revenue Increase)
Ford and other former members of the old-style auto blacksmithing business – cast it, stamp it, weld it, machine it and put it together – has been confronted with the need to cost effectively deal with so-called connected vehicles. The traditional way of pitting suppliers against one another and buying at lowest cost has failed since the software of the many individual computer modules on current vehicles isn’t always compatible with other computerized sub-systems – creating in effect an electronic Tower of Babble.
Click for bio.
There are multiple computers and millions of lines of software code in current cars. Impending autonomous driving vehicles make the issue more acute. Worse, software recalls are now common and require the cooperation – or the permission of the companies that own the software. As a result, the auto industry is now bringing software development and ownership back in house. Not exactly a new a concept – vertical integration.(AutoInformed: Ford Changes Supply Chain and Product Development Execs).
In March of 2023, Ford established Latitude AI, a wholly owned subsidiary, to develop “a hands-free, eyes-off-the-road automated driving system.” The move was partially the result of a Q3 2022 decision that saw Ford shift its capital spending from the L4 advanced driver assistance systems being developed by Argo AI to internally developed L2+/L3 technology. That move was forced on Ford when Argo AI failed to attract new investors needed for ongoing development. Ford recorded a $2.7 billion non-cash, pretax impairment on its investment in Argo AI, resulting in an $827 million net loss for Q3 of 2022. (Click here for the SAE Autonomous Driving Levels cited above.)
Stern, who starts at Ford Motor today reporting to President and CEO Jim Farley, will:
Ford claims it has ~550,000 paid software and services subscribers, with Ford Pro commercial customers today accounting for more than 80% of them. Clearly it is anticipating a fight in the personal use segments. (AutoInformed: Ford Buys Electriphi to Provide Ford Pro Commercial Customers with Charging and Energy Management)
Before joining Apple in 2016, peter Stern was Time Warner Cable’s EVP and chief product, people and strategy officer. He began his career at McKinsey & Co. Stern earned a juris doctor degree from Yale Law School, where he was an editor of the Yale Law Journal and author of the book Connecticut Prisoners’ Rights. He subsequently became a member of both the New York and Connecticut bars. Stern has a bachelor’s degree in music and English from Harvard University.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.