How Code Took the Wheel of America’s Cars

American carmakers are betting that software, not steel, will shape the next era of mobility

12 Dec 2025

The future of the American car is being decided less in factories than in server rooms. Engines once defined an automaker’s skill; batteries now share the stage. But software, lines of code that govern how a vehicle drives, updates and earns money, is becoming the industry’s main source of power.

A sign of the shift came with Rivian’s decision to deepen its investment in autonomous-driving software paired with custom, in-house computing hardware. The aim is not merely better driver assistance today, but hands-free driving tomorrow, delivered through regular over-the-air updates. The message is clear: cars are turning into digital platforms that keep changing long after they are sold.

Rivian is not alone. Across America, carmakers are pulling software development away from traditional suppliers and bringing it inside. Speed and control are the prizes. When software is tightly woven into vehicle systems, new features can be rolled out faster, real-world driving data can be used more effectively, and intellectual property is easier to protect. The payoff could be large. Software enables paid upgrades, subscriptions and other services that generate steady income long after the initial sale.

Analysts see this as a decisive moment. As buyers grow used to phones and laptops that improve with updates, they expect the same from cars. For manufacturers, software offers something the industry has long lacked: predictable, recurring revenue and longer relationships with customers.

The risks are considerable. Automotive software is complex, costly to build and harder still to test. Safety concerns rise as assisted and partially automated systems handle more driving tasks. Recent software fixes and corrective actions by firms such as Waymo show how difficult it is to manage autonomy in messy, real-world conditions. Regulators, including federal safety agencies, are paying closer attention to how updates alter vehicle behaviour.

Even so, the momentum is strong. Software fits neatly with electrification, connectivity and digital services. For drivers, it promises vehicles that become safer and more useful over time. For carmakers, it marks a move away from one-off transactions towards ongoing digital engagement.

Those that succeed will be the ones that pair rapid innovation with restraint. Trust, built through rigorous testing and transparency, will matter as much as clever code. As American cars grow smarter, software looks set to steer the industry’s next chapter.