Auto Choices Getting “smarter” in 2008
It’s official! DaimlerChrysler’s adorable city car, the smart fortwo, will be officially imported at the beginning of 2008! The cars will be sold through new dealerships under agreement with UnitedAuto Group, headed by the legendary Roger Penske. The smart is currently available in the U.S. through a couple of methods. One is a gray-market car that is technically a used car from another country that has been modified so that it is allowed to be sold here. The second is similar though a bit more formal, the models being sold through dealerships with ZAP (disclosure: I’m a very minor shareholder in ZAP). Last month I spotted one of the gray-market smarts at Bevo Mill, see post.
The problem with the two current choices is you pay nearly $30,000 for a car that is intended to sell for $15,000. The officially imported model will not be the current design which dates back about 10 years. Instead the U.S. will get a new design along with the rest of the world. We will not, however, be getting the more efficient diesel engines. Hopefully by the time of introduction diesels will be more acceptable here. The new low-sulpher diesel being phased in this year may also speed this along. It is reported the cars are expected to sell in the $15K range when introduced, a reasonable price for a 2-seater capable of 50-60mpg.
smart’s dealerships are quite interesting and compact. We’ll see if the importation group will require stand-alone dealership in order to get a franchise. If so, I’d really love to see one of these urban-friendly dealerships in St. Louis. This would actually be a good fit on the edges of downtown.
Thanks to GreenCarCongress for the info on the announcement. For more information and to see a cool video of the current smart in the U.S. see smartusa.com
Toyota is expected to have it’s third generation Prius on the market around the same time.
– Steve
Green cars remind me of the very cute billboard campaign for the release of the redesigned VW Bug:
“0 to 60 … yes”
Hybrids and other green alternatives are almost there to being a viable choice for those needing something beyond a 4-wheel mo-ped.
What do you know about the Toyota Yaris????? It looks interesting, too.
[REPLY The Yaris is the improved replacement for the Echo. My Scion xA is based on the same platform and uses the same drivetrain. The Yaris is quite attractive but is only offered in a two-door hatch or a four door sedan. If I’ve got a rear seat I like rear doors. The Honda Fit is another new entry into the small car segment — quite attractive. – SLP]
CBS News had a good report on it last night – you can see it on their website,
http://www.cbsnews.com/sections/i_video/main500251.shtml?channel=eveningnews
Bring back the Fiat Cinquecento!
I noticed that Suntrup Ford in Kirkwood has a few Smart cars on their lot right now as well.
[REPLY – Yeah, they are the local place to get one of the gray-market cars. I stopped by there a coule of weeks ago and the salesmen seem disappointed that I wasn’t there to get a new Ford. – SLP]
I’m disappointed in Toyota. I got very excited about the Yaris after seeing their TV commercials, but they really haven’t been pushing the Yaris in our area. Alternatively, the Camry Hybrid looks interesting too.
Nearly $30K? That’s greater than my salary!
Nearly $15K? That’s over half!
What is the cost of a year’s worth of Metro month passes? It can’t even come close to the cost of one of these cool but expensive cars.
They are cute and cool, but I would not like to get hit by a Yukon in one. As a big supporter of families, and auto safety, what car does the group or moderator recommend for an urban-minded family of four or five?
[REPLY I suggest buying only as big of a car as you need. Some larger cars are not as safe as some smaller cars. Look for strong cages and plenty of airbags. The new Honda Fit, for example, comes with side air bags standard (optional on the Scion). My Scion seats four quite comfortably. The Prius is quite spacious as are Honda hybrids. The smart, btw, is quite safe due to Mercedes engineering resulting in a strong safety cage. – SLP]
“…the salesmen seem disappointed that I wasn’t there to get a new Ford.”
If you really want to disappoint them, you could have told them you want to buy a Focus. A recent Business Week article revealed that Ford loses $4,000-$5,000 on every Focus sold – all at a time when sub-compacts are more popular than ever!
BTW, I’m noticing a lot more scooters around the south side lately, which is great to see!
Finally! I saw these all over the streets of Paris a year ago and was really hoping I’d someday see them in the US. Does anyone know of Total Cost of Ownership info for these things? Prius’s just aren’t cheaper than a Ford Focus and are technically WORSE for the environment (with their big ass heavy metal batteries that have to be disposed somewhere…).
It’d be great to see these in Diesel. Run that with a half-n-half mixture of biodiesel from your local McDonalds, and you got yourself one cheap and adorable little ride.
To MoA – one word: Minivan.
But it’s too bad you’re not the Mayor of Canada, ’cause then you could get yourself a wicked-cool Volkswagen T4 MV-Weekender, with a 5-cyl diesel engine and a manual transmission. seats 7, sleeps 4 adults, pulls a 4,500lb trailer, keeps your Molson cold in the under-seat fridge. *sigh*
Us chumps in the “lower half” of NA are stuck with only gas-guzzling VR6’s and automatics.
A years worth of metro monthly passes would be 720 dollars a year when metro raise fares this fall or 60 dollars a month.
Ok, before you think I am being a smarta$$ with this, let me say I am being dead serious with this suggestion.
Would anyone be interested in taking a tour of the city by Metro bus? I think this would be an opportunity for those of us that drive everywhere to see the city from another perspective. If you’re interested, let me know and I’ll try to organize this.
Months before its introduction, numerous Mercedes-Benz Canada dealers and their sales forces had no clue what a Smart car was. They did not have sufficient inventories to organize a proper introduction and dealers had to tell customers theyÂ’d have a 3 to 6 month wait and in most cases longer, even with a sizeable deposit.
This should not be the situation, once cars are available in the States. We anticipate Roger Penske and his United Auto Group, one of the dominant car dealer networks in the world; will be well prepared and on top of their game.
Through United Auto Group Smart owners will be assured maintenance, “factory” warranty work and the after-sales servicing will be available in all regions of the United States, by trained service personnel and factory parts will be readily available.
United Auto Group’s, CEO Roger Penske, projected sales of 40,000 plus when the all new Smart Fortwo comes to the United States. “The idea of bringing Smart to the U.S. was met with smirks in 2000, but conditions have changed, making an urban car appealing,” says DaimlerChrysler AG Chairman Dieter Zetsche.
Zetsche cites increased congestion in many cities; a shortage of parking spaces; and higher gasoline prices.
“The business case, deliberately conservative, is not dependent on gas prices remaining high — but certainly benefits from current levels, with little reason to believe they will fall,” he says.
In addition to high fuel economy, the tiny Smart car has significantly lower emissions than most models currently available on the market.
Zetsche also says Smarts will help Mercedes-Benz to meet corporate average fuel economy (CAFE) requirements
The all new 2008 Smart Fortwo’s U.S. situation is extremely favorable and in fact a phenomenon for the carmaker and United Auto Group’s audition of a new brand. The Smart Fortwo has established substantial vehicle awareness, a massive open market assessment. This is a very unconventional posture for any car.
This is more evidence that there are markets for this type of car, even in the U.S., identified for our “Yank Tanks” and mammoth automotive wants.
Smart’s Canadian accomplishments, was definitely not due to their marketing campaign.
However, United Auto Group and Daimler Chrysler; will have proper marketing and fair pricing and we believe will secure a large share of the American small car market.
Penske says he knows that when the Smart Car does arrive for sale in the American marketplace, there will be an educational process to convince consumers that the tiny Smart Car vehicles are safe, but still expects 30 to 50 dealers to sell Smart initially. He does not say how large the dealer network may get, but says he wants to ensure the entry cost for dealers is reasonable and allows them to operate profitably.
The strategy is to take the next 12-18 months to identify key markets and the best dealers for the Smart. If handpicked dealerships (customer service index scores will be among criteria) are not already part of the Daimler Chrysler family, they must be stand-alone dealerships, Penske says. Dual-franchised dealers would need separate showrooms for their Smart Cars.
A nationwide, around-the-clock SOS technical helpline will be established for the buyersÂ’ security, offering piece of mind to Smart owners traveling in areas without a dealer presence, Penske says.
Our research and data demonstrates that; individual sales in conjunction with commercial pre-sold units could top 15,000. And their goal to sell 40,000 units a year in the United States can be realized.
Truly commercial versions of the Smart Car may not yet be available in the U.S., but you can be assured that when Daimler Chrysler and Penske team up to create a true nationwide dealer network, Smart drivers will be sitting even Smarter, knowing the right resources are in place to ensure their continued satisfaction while driving Smart.