ABSTRACT
The product-service systems (PSS) concept represents an example of an innovative practical approach to moving beyond simple product environmental innovation and towards innovation at the functional and systemic level. The implementation of system innovations such as micro-factory retailing and PSS requires awareness of not just network and infrastructural factors but also of the importance of involving a wide range of stakeholders in the necessary change processes. A PSS has been described as 'a system of products, services, supporting networks and infrastructure that is designed to be: competitive, satisfy customer needs and have a lower environmental impact than traditional business models'. The fact that manufacturers retain ownership of products within a PSS means that instead of representing profit centres, products become cost centres instead. It is clear from the above analysis that the adoption of the PSS concept within the automotive industry could represent an interesting and effective means of addressing some of the economic and environmental concerns outlined earlier.
