The Innovation Odyssey: Lessons from an Impossible Project

227 Pages·2023·6.831 MB·English

by  Christophe Midler, Marc Alochet, Christophe De Charentenay

THE
INNOVATION
ODYSSEY

THE
INNOVATION
ODYSSEY
LESSONS FROM AN
IMPOSSIBLE PROJECT
Christophe Midler
Marc Alochet
Christophe De Charentenay
Boca Raton and London
First edition published 2023
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© 2023 Christophe Midler, Marc Allochet, and Christophe De Charentenay
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ISBN: 978-1-032-45430-6 (hbk)
ISBN: 978-1-032-38746-8 (pbk)
ISBN: 978-1-003-37695-8 (ebk)
DOI: 10.1201/9781003376958
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Trademarks Used in This Book
Build Your Dreams is a registered trademark of BYD Company Limited.
Dacia is the name of one of the Renault Group brands.
Fluence is a registered trademark of Renault Group.
Fortwo is a registered trademark of Smart Automobile Co., Ltd.
Hozon is a registered trademark of Zhejiang Hozon New Energy
Automobile Co., Ltd.
Kodak is a registered trademark of Eastman Kodak Company.
Kwid is a registered trademark of Renault Group.
Logan is a registered trademark of Renault Group.
Mercedes-Benz is a registered trademark of Daimler Ag.
NIO is a registered trademark of NIO Co., Ltd.
Northvolt is a registered trademark of Northvolt Ab.
Powerpoint is a registered trademark of Microsoft Corporation.
Renault is a registered trademark of Renault S.A.S.
Saft is a registered trademark of Saft.
Spring is a registered trademark of Renault Group.
Stellant is a registered trademark of PSA Automobiles SA.
Tesla is a registered trademark of Tesla, Inc.
Uber is a registered trademark of Uber Technologies, Inc.
Xpeng is a registered trademark of Guangzhou Xiaopeng Motors
Technology Co., Ltd.
ZOE is a registered trademark of Renault Group.

Contents
Contents vii
List of Figures and Tables xiii
Foreword by Denis Le Vot xvii
Preface xix
About the Authors xxv
Introduction xxvii
Part 1 The Odyssey of K-ZE 1
Chapter 1: T he Long March of the Accessible Vehicle
Concept for China 5
The Explosion of the Chinese Market: A Promised Land for Automakers 6
Twenty Years of Attempts to Penetrate the Chinese Market 7
The Electric Vehicle as Essential to the Conquest of the Chinese Market 8
From Emergence to Affi rmation of the “Access EV” Concept for China 9
Conclusion: the Emergent Strategy and Its Relationship to Projects 11
Chapter 2: Preliminary Project: Exploring the Unknown 13
An Exploration Driven by Economic Factors 14
Framing the Research 15
Researching the Supplier Base—Key to the Feasibility of Design-to-Cost 21
Choice of the Manufacturing Plant 23
Monitoring the Dynamics of Chinese Electric Vehicle Standards 25
vii
viii The Innovation Odyssey
A Prototype Prepared in France, and a New Modular Battery 26
Multi-Brand Marketing, but Volume Forecasts Remain Uncertain 26
September 28, 2016, Meeting 27
Conclusion: The Preliminary Project Is an Integral Part of the Whole 31
Chapter 3: A n Innovative Framework for a Cooperative Design 33
eGT, the Operator of the Project 34
An Original Business Model 36
The Constitution of the Project Team 41
Team Management: Multicultural Integration and Cohesion 46
Conclusion: Power and the Limits of Formal Project Framing 47
Chapter 4: An Agile Development in an Unprecedented Context 51
The Challenges of Working Outside the Norms 51
Product Defi nition 52
The Inexorable Infl ation of Performance 52
Adapting the Platform 54
Ambitious Volumes that Increased as the Project Progressed 55
Differentiation Management 56
Co-Design with Suppliers 56
The Design-to-Cost War Machine 57
Battery Crisis 59
From Investment Decisions to the Start of Mass Production:
K-ZE, a Vehicle Without a Plant? 62
Construction of the New Body Shop, from Blockages to
Spectacular Recoveries 63
Plant Startup: Heavy Weather in Shiyan (Fall 2019) 64
The Battle for Quality 67
Passing the Quality Milestones on K-ZE 67
Improving the Quality of Suppliers 68
Spring Development: Mission Accomplished 70
Conclusion: Toward a Model of Development Compatible
with Innovation 72
Chapter 5: A Project in a Perfect Storm 75
A Promising Commercial Launch 75
Four Shockwaves in the Chinese Market 77
The Financial Crisis at DRAC, the Project’s First Client 77
Contents ix
The Networks of Other Chinese Subsidiaries Break
Their Commitments 79
COVID-19 Hits 82
Change in the Criteria for Granting Subsidies 83
Storm Clouds Gather at Renault and Nissan Headquarters 83
In the Face of Headwinds, the Project Pivots to Europe 84
Conclusion: A Truly Resilient Project 85
Chapter 6: The Phoenix 89
A Diffi cult Trip to Europe 89
Engineering for European Launch 91
A Product That Arrived at the Right Time 92
Dual European Deployment 94
The Marketing of the Dacia Spring 97
Conclusion: Dacia Spring, the Accessible Electric Vehicle That Is
Changing the Market 98
Conclusion of Part 1: Evaluating Innovation Projects 101
Part 2: Learning from Projects 105
Chapter 7: Societal Innovation and Administered Darwinism 107
The Dynamics of the Electric Vehicle Market in China and Europe 109
Electric Vehicle Regulations in Europe and China 113
European Regulations 113
Emission Regulations 114
Support for the Battery Industry 117
The Deployment of Charging Networks 118
The Provisions Supporting the Application 119
Chinese Regulations 119
Emission Regulations 120
The Deployment of Charging Networks 121
Support for Demand 122
Europe–China: Contrasting Modes of Public Intervention 124
Europe: Support for a Gradual Transition That Becomes
More Radical after 2015 124
China: The Implementation of an Administered Darwinism 125
Conclusion: Technological Neutrality and Administered Darwinism 127