I have just watched an interesting TEDx talk. Joe Rainier talks about wikispeed. An organisation he started where the goal was to build a car that can go 100 mpg. Be road worthy and safe.
They did it!
They used scrum and software development techniques to iterate over a 7 day period. They had their first fully working prototype done in 3 months, and an auto show version done in 6 months.
The video is only 10 minutes long and I think its well worth a watch.