The French automotive group Renault wants to use a blockchain system to track compliance with legal requirements for vehicle components. Groupe Renault developed the project in response to the new market surveillance regulations.
The new market surveillance regulations provide for regulatory controls, so the entire supply chain is affected by these regulations. Companies will be required to respond to regulatory requests in a shorter timeframe. These controls are to take place even if the vehicles have already been launched on the market. According to a Renault Group press release, the XCEED (eXtended Compliance End-to-End Distributed) blockchain project was developed to meet these requirements. The Groupe Renault is composed of the following brands: Renault, Dacia, Renault Samsung Motors, Lada, and Alpine.
Blockchain project XCEED
The project was developed in cooperation with IBM and is based on Hyperledger Fabric. However, it should not only be seen as a reaction to the new market surveillance regulations; Renault also wants to improve its competitiveness by using blockchain technology. Since the automotive industry always has many suppliers involved in the production, there are interdependencies. A supply bottleneck at a certain point could lead to the entire production shutdown, and this is something that we want to avoid at any cost. This is where XCEED from Groupe Renault comes into play:
“Blockchain technology really comes into its own in a huge ecosystem involving several different companies. It provides a link between the partners’ different processes, computer systems, and databases. In the automotive industry, where we interact with countless external players such as suppliers, customers, and independent dealers, there are many possible applications for this type of technology”. – Odile Panciatici, Vice President of the Blockchain Department at Groupe Renault
Reorganization of the automotive industry
On the one hand, it will be possible to monitor the compatibility of all vehicle parts, from design to production. Another advantage of the project is the fast exchange of information. The blockchain technology accelerates the exchange of information because it is available in real-time and ensures greater efficiency than with a centralized network. Besides, the data can be shared and tracked by several actors, which increases competitiveness and operational business in the automotive industry.
“The XCEED project we initiated is an impressive example of Groupe Renault’s capacity for innovation. We are convinced that the Blockchain will set a stone in motion for the transformation of the automotive industry”. – Odile Panciatici, Vice President of the Blockchain Department at Groupe Renault