Product-service systems in the automotive industry: the case of micro-factory retailing

Abstract Solutions to the economic and environmental impacts of the automotive industry have largely focused on technological innovation at the level of products or processes. This paper argues that, in order to achieve sustainability, change processes must be undertaken at the functional and systemic level. The concept of product-service systems (PSS) represents a valuable opportunity to introduce such changes. PSS is predicated on new forms of product ownership, stewardship, design and producer–consumer interaction. The challenge now is to investigate ways in which the PSS concept might be introduced at the empirical level. The paper suggests that the adoption of micro-factory retailing (MFR) ideas offer a means of introducing such a system-level change in the automotive industry. MFR is based on novel approaches to vehicle design that facilitate the economic viability of small-scale localised manufacturing sites. It is argued that such an approach to vehicle production, allows the adoption of a full scale PSS at local levels. Furthermore, via aspects such as the unification of the commerce and manufacturing function, and the proximity of manufacturing and servicing sites to users, the MFR approach may also offer distinct advantages compared with prevailing visions of PSS.