XIX International Triple Helix Conference -2021

MARCELA SAYUMI DE SOUZA ITOMarcelo Amaral

2021, Innovation and Sustainability in the Brazilian Automotive Industry: The Electrical Truck "e-delivery" Project

Climate change concerns and the search for sustainable energy sources prompt several countries to change their laws by forcing industries to adapt. Issues such as sustainable mobility with the reduction of gas emissions are urgent guidelines. Technological advances such as interactive security systems, connectivity, and autonomous cars will transform production chains and automotive value (Gao et al., 2014). Besides the electrification technology of motorization and driving autonomy, new business models emerge, such as transport by a signature (Consoni et al., 2018). In that context, the e-Delivery Project from Volkswagen Trucks and Bus (VWTB), a company located in Resende, in the south of the State of Rio de Janeiro, was identified as relevant to address an agenda of innovation, development, and competitiveness of the industry installed in that region. This article analyzes the project from the theoretical perspectives of the Global Value Chains (GVC) and Triple Helix (TH) (Bair; Gereffi, 2001; Etzkowitz, 2008). DESIGN/METHODOLOGY/APPROACH: This paper presents an applied research with descriptive, exploratory, and inductive characteristics. The study is part of the BRAIN initiative, Brazilian Research in Auto Industry. It has the aim to be a repository of information and studies on the automotive sector in Brazil. From a theoretical viewpoint, the GVC and TH help understand the relations between industry, governmental entities (Resende City Hall, State Department of Development, and Federal Government), the academy, and society. Information from the industry was collected on market sources related to the automotive industry, such as the National Association of Motor Vehicle Manufacturers (ANFAVEA) and the Brazilian Electric Vehicle Association (ABVE). Then, a case study was developed, constructed from the collection of information with the VWTB, through official and unofficial documents, observation in technical visits, and indirect statements of employees and others involved throughout 2019 and 2020. The informal nature is necessary due to the secrecy of the development process. As a result, this study presents an initial overview of the e-Delivery Project. FINDINGS OR EXPECTED OUTCOMES: The e-Delivery Project is an electric mobility project that involves developing and producing the prototype of a 100% electric truck using Brazilian technology. To enable the investment, the automaker brought together suppliers through the e-Consortium business model, in the form of a "Modular Consortium," in which VWTB determines a cluster relationship with its suppliers and workers the assemblage of trucks replicating the current value chain model. Thus, the company is active in developing the "ecosystem" that comprises from assembly to the infrastructure of recharge and battery life management of electric trucks, thus boosting and generating the engagement of the entire supply chain in an integrated way (Ito & Amaral, 2020). This phase of the e-Mobility business plan received BRZ 110,8 million from the company, partly financed by the Brazilian Development Bank (BNDES), and own resources from an "investment cycle" of BRZ 1.5 billion by VWTB in the country. The e-Consortium has eight companies: Bosch (electronic management), CATL (Chinese manufacturer of batteries), Moura, Semcon, Siemens (supplier of all energy infrastructure for battery recharge), Weg (electric motors), Meritor, and Eletra (specialized in pure electric buses). From a strategic viewpoint, WVCO's move directly responds to foreign companies such as China's BYD, which already produces electric buses. From the TH's perspective, the project has not found connections between the university and the industry. Collaborative R&D initiatives among the academy and the companies integrating the e-Consortium were not identified. The link is limited to the training of human resources. Also, universities do not present a research agenda to meet the needs and interests of the e-Consortium companies. Other actors such as industrial entities and associations (FIRJAN, SENAI, SEBRAE) and intermediaries have limited performance. In the relationship between VWTB and the government, tax incentives are in use (Rota 2030 Program and BNDES reimbursable financing). In this sense, the relationship is a TH laissez-faire configuration, where there is little interaction between the actors and low impact on regional socio-economic development. There is an opportunity for actors to build and use knowledge-creating an advantageous competitive position for the medium and long term. In technological terms, there is also so far no patent filing in Brazil. Then, it is understood that technology for development is dominated by participants, with no technological innovation in the components. ORIGINALITY/VALUE: The future of the automotive sector is in the electrification of motor vehicles along with automation and connectivity. The Brazilian automotive industry will face major challenges involving bureaucracies, competitiveness, infrastructure, and tax issues to be able to keep up with all the transformations that are taking place in the global automotive chain. PRACTICAL/SOCIAL IMPLICATIONS: From the viewpoint of the GVC, what is seen in the project is a reconfiguration of the modular consortium for the production of electric cargo vehicles, with the entry of partners with specific competencies, without changing its central character of a chain-driven by producers (Sturgeon et al., 2011; Sturgeon et al., 2017). Such reconfiguration generates opportunities and threats to current modulists, especially in areas where the necessary knowledge is different. Initially, the new modulists will act on a product very similar to the current one, being the propulsion distinct, expanding the market for companies currently in the consortium, except for Powertrain. Possibly, VWTB will produce both types of vehicles for a few years. In this sense, the modulist that delivers for both configurations will be able to position itself more strategically. DIRECTIONS FOR FURTHER RESEARCH/LIMITATIONS: Futures studies can explore issues related to e-Delivery and an agenda of innovation, development, and competitiveness of the automotive sector in Southern Fluminense. First, expand the research of the e-Delivery project with interviews and the follow-up of its results. A second approach is to compare VWTB's case with other automotive companies that have already advanced in the development of electric vehicles, such as BYD or Tesla. One way is also to study the requirements for the electrification of vehicles and whether the production chain in Brazil can meet these requirements. Finally, there is the issue of public policies. It is possible to analyze the "Rota 2030" and other programs and recommend adjustments in these policies to support the process of electrification of the national fleet, which can impact sustainable development. KEYWORDS (3-5): e-Delivery; Volkswagen Trucks and Buses; electric trucks.