The dynamics of innovation

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Jorg Bensinger, head of Audi's R&D department, sought to promote his idea for a four-wheel drive system for passenger cars. Positive results from drive tests with the lItis, a jeep-like vehicle for the German army, demonstrated excellent performance on icy and snowy roads. In February 1977, Bensinger seized the opportunity to present his concept to Ferdinand Piech, Audi's R&D vice president and a technology enthusiast. At that time, Audi was not viewed as a technological leader, with customers expecting innovations from brands like Mercedes or Porsche. Recognizing the potential for a strategic shift, Bensinger and Piech initiated development work on the four-wheel drive system in secrecy. A significant challenge was the space needed for the gearbox, which Hans Nedvidek, a former Mercedes race-track engineer, creatively addressed. By September 1977, other board members were briefed, and after some discussions, a consensus was reached the following month to authorize further development of the four-wheel drive car. However, as Audi is a subsidiary of Volkswagen Corp, approval from the larger parent company was also necessary.