Environmental innovation in auto development - managing technological uncertainty within strict time limits

Manufacturing industry is facing increasingly stringent demands on environm ental compliance and the auto industry is particularly exposed to pressure from public and authorities in this area. The purpose of this article is to provide an empirical analysis on how the application of new technologies i n order to comply with environmental demands may change the product develop ment process within the auto industry. Experiences from the development of Toyota Prius, the world's first mass-produced car based on a hybrid power t rain, are presented and analysed. The analysis shows that technological unc ertainty made it necessary to move beyond the prevailing lean product devel opment approach. The article concludes by suggesting a strategy consisting of three fundamental elements in order to control technological uncertainty in innovative and time-focused product development projects: up-front test ing, intense horizontal communication, and clear and challenging objectives .