For over ten years, connected cars have appealed to new buyers thanks to their sleek software updates and convenient features that resemble smartphones. However, this convenience raises a critical question: what happens when a connected car becomes a disconnected one? Similar to a scene from The Phantom Menace, many are losing functionality as China’s automotive sector consolidates, leaving numerous connected cars without support. If we are not vigilant, American car owners may find themselves in a similar predicament.
This issue was highlighted in an article from Rest of World, which interviewed various EV owners affected by the financial struggles of Chinese car manufacturers. China jumpstarted its electric vehicle industry through substantial subsidies that attracted a multitude of manufacturers. Once these subsidies ended, many brands faced closure, with over 20 companies reportedly going out of business. This situation poses significant challenges for consumers who purchased connected vehicles from these now-defunct brands.
The most significant failure among Chinese automakers thus far has been WM Motor, which sold around 100,000 vehicles from 2019 to 2022. In October 2023, it filed for bankruptcy, effectively halting software support for its customers’ cars. With the company’s servers down, widespread malfunctions were reported, affecting essential functions like stereos, charging indicators, odometers, and app-based features such as air conditioning and locking.
Although WM Motor has reportedly reactivated its servers to restore partial vehicle functionality, it has not released any software updates since its bankruptcy filing nearly a year ago. Its mobile app remains absent from app stores, preventing potential used vehicle buyers from accessing some features. Curiously, this situation does not seem to violate China’s consumer protection laws, which stipulate ten years of parts and service support, though it appears to neglect software support. As many as 160,000 car owners in China may find themselves facing similar issues as more automakers experience financial difficulties.
In the United States, comparable experiences have occurred, such as Tesla’s outage in 2021, which locked some owners out of their vehicles and disrupted charging capabilities. More recently, Fisker’s bankruptcy left owners of its Ocean SUV grappling with numerous software problems and uncertain resolutions. While the issue is more pronounced in China—where technology is a key selling point and more brands are at risk—it’s crucial that we take heed of these warnings rather than dismiss them. It’s more effective to be proactive than reactive in such situations.
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