A Bumpy Road Ahead?

Industry Perspectives on the Fair-Wear Pricing Model for Sustainable Mobility

Brîncoveanu, Carl & Hinz ·
TL;DR: An interview study revealing the socio-technical and business model conflicts that challenge the adoption of the Fair-Wear Pricing Model in the automotive industry.

The Fair-Wear Pricing Model (FWPM) proposes a fairer and more sustainable approach to vehicle leasing, but its real-world feasibility is unclear. To investigate this, we explored industry stakeholder perceptions through 19 qualitative interviews with automobile manufacturers and lessors.

Our findings reveal that the primary barriers are not technical but socio-technical. We uncovered a “manufacturer’s conflict,” where R&D benefits clash with threats to profitable after-sales revenue, and a “lessor’s divide” between proponents who see its risk-management potential and skeptics who favor existing models. This work provides the first empirical analysis of these strategic challenges, synthesizing them into a model of stakeholder tensions.

Working Paper.