Paper Number
ECIS2026-1983
Paper Type
CRP
Abstract
The Fair-Wear Pricing Model (FWPM) proposes dynamically adjusting vehicle leasing rates based on real-time wear, promising greater fairness and sustainability. Whether this model can gain traction in business practice is currently unclear. This paper investigates stakeholder perceptions through 19 qualitative interviews with automobile manufacturers and lessors. Findings reveal that primary barriers are not technical, but of socio-technical nature. We uncover a “manufacturer’s conflict,” where R&D benefits clash with threats to profitable after-sales revenue. We also identify a “lessor’s divide” between proponents who see its risk-management potential and skeptics who favor existing portfolio-based models. We conclude that feasibility hinges on resolving these business model conflicts, requiring a re-negotiation of value and risk within the automotive ecosystem. We provide the first empirical analysis of the strategic challenges facing the automotive industry’s shift from a product-centric to a wear-centric business model, synthesizing these findings into a model of stakeholder tensions.
Recommended Citation
Brincoveanu, Constantin; Carl, K. Valerie; and Hinz, Oliver, "A Bumpy Road Ahead? Industry Perspectives On The Fair-Wear Pricing Model For Sustainable Mobility" (2026). ECIS 2026 Proceedings. 4.
https://aisel.aisnet.org/ecis2026/twin/twin/4
A Bumpy Road Ahead? Industry Perspectives On The Fair-Wear Pricing Model For Sustainable Mobility
The Fair-Wear Pricing Model (FWPM) proposes dynamically adjusting vehicle leasing rates based on real-time wear, promising greater fairness and sustainability. Whether this model can gain traction in business practice is currently unclear. This paper investigates stakeholder perceptions through 19 qualitative interviews with automobile manufacturers and lessors. Findings reveal that primary barriers are not technical, but of socio-technical nature. We uncover a “manufacturer’s conflict,” where R&D benefits clash with threats to profitable after-sales revenue. We also identify a “lessor’s divide” between proponents who see its risk-management potential and skeptics who favor existing portfolio-based models. We conclude that feasibility hinges on resolving these business model conflicts, requiring a re-negotiation of value and risk within the automotive ecosystem. We provide the first empirical analysis of the strategic challenges facing the automotive industry’s shift from a product-centric to a wear-centric business model, synthesizing these findings into a model of stakeholder tensions.