Automotive NewsWire sez Smart Fortwo Sales in the Cellar

[fannum]

Smart Fortwo Sales in the Cellar; Mercedes May Boost Small Cars
Automotive NewsWire: November 16, 2009

Roger Penske and Smart fortwo builder Mercedes-Benz might have taken a lesson from the legendary Isetta, a mini car introduced in the U.S. in the mid-fifties by BMW. The Isetta, developed initially in Italy and sold under license to BMW, became an important stepping stone for BMW sales in many countries around the world. The car, about the same size as a current day Nano or Smart, was immensely successful throughout Europe, but never became more than a curiosity in the U.S.



It's beginning to appear that may also be the case for the Smart fortwo, produced by Mercedes-Benz with an exclusive North American sales franchise by Penske Automotive. Having sold successfully in crowded European cities over the last few years, both Mercedes and Penske were optimistic about sales in the U.S. And, initially, orders for the Smart in the U.S. were ahead of forecasts, most of which were based on consumer research Mercedes performed on U.S. buyers that indicated the car would not sell well in the U.S. market. The brisk sales, however, have subsided and are now more in line with the original Mercedes research - Smart small is too small for American tastes, just like the Isetta.



Penske Automotive reported in its third quarter report that during the third quarter, Smart USA wholesaled 3,401 units, and blamed the "challenging new vehicle sales environment in the U.S." for the adverse sales impact in Smart fortwo vehicle sales. Penske said that in response to slowing sales, Smart USA had introduced new finance and marketing campaigns in October designed to sell through the balance of the 2009 model year inventory.


Daimler AG, however, is taking a close look at its small car future and there may be some thoughts that the luxury auto manufacturer may have gone just a little to small in attempting to capitalize on the small car market with the Smart car. Taking stock of brisk sales of the BMW 1 Series, the Mini Cooper and Audi A3 models, Mercedes-Benz is reported to be looking at introducing competitive models in less than two years.

[rfernatt]

Finally! Plans for a plus size model to compete with the likes of the Fit, Fiesta, Yaris, Fiat 500, etc.

[Dunerunner]

As long as gas prices are low, sales will be soft. People are not willing to surrender what they perceive as a safer, more prestigious vehicle for a smart, until gas is back at $4 or approaching $5 a gallon.

It's the "Oh, I've lost 10 pounds!! Now I can eat that gallon of Hagan Das!" syndrome.

Of course, releasing a Roadster Gas Turbo and a ForFour Turbo Diesel would help!!

[forestacademy]

Some have had the problem for a while and still not getting better
GM reports $1.2 billion third-quarter loss - Autos- msnbc.com

[bigcritter]

Originally Posted by Dunerunner

People are not willing to surrender what they perceive as a safer, more prestigious vehicle for a smart, until gas is back at $4 or approaching $5 a gallon.

Had some guy in a older crew-cab pickup Saturday ask me "if anyone had DIED in that thing yet?" I stayed diplomatic, but it was TOUGH!! I DO think that's the biggest downfall with the smart, though. People just DON'T see it as being SAFE!!!

[Chris Wurgler]

My first trip to Costco in the smart.
A grey haired Harley dude with no helmet asked me what I was gonna do when I got hit by a semi. I didn't have an answer.

Now I'm off again to Costco, my favorite store, and with the smart I get to go more often.

[BobDiaz]

Taking a snapshot of today's market is really pulling things out of context.

(1) The economy is still down, so no surprise that sales are also down.

(2) Gas prices are low, but there is some evidence that as the economy picks up, gas prices are going to rise again. This will have an impact on sales in the future. When gas prices were at record highs, what happened to the sales of the massive SUVs?

Chris Wurgler
My first trip to Costco in the smart.
A grey haired Harley dude with no helmet asked me what I was gonna do when I got hit by a semi. I didn't have an answer. ...

If you had the guts to say this, try, "I don't know, but what happens when you are hit by a semi when you are on your Harley?"


Bob Diaz

[fannum]

Originally Posted by bigcritter

Had some guy in a older crew-cab pickup Saturday ask me "if anyone had DIED in that thing yet?" I stayed diplomatic, but it was TOUGH!! I DO think that's the biggest downfall with the smart, though. People just DON'T see it as being SAFE!!!

That whole image has endured all through the post war years when little Chevies and Fords,and heavens forbid, Nash Ramblers were considered unsafe compared with big Buicks and Cadillacs. Salesmen fed that myth, and ALL US cars grew.

Then in the 80s, a poorly worded NHTSA report got interpreted by newspapers to say that the Suburban was the safest car sold in America. Yuppies rushed to protect their progeny with entirely inappropriate big behemoths. Actually, what the study reported was that you stood less chance of serious injury "IF YOU GOT IN AN ACCIDENT!!!" Very close behind was the Volvo 142, also a favorite of suburbanites. But, buried in the article past the part the short attention span newspaper writers bothered reading, was data that said that you were 3 to 4 times as likely to have an accident in a Suburban!

So, apartment parking lots got crowded with Suburbans, and IMHO, that largely helped the SUV craze. Remember, the 80s started with hatchbacks and sports coupes, and suddenly about 1990, they were gone and the SUVs took over.

Cheers, Bob

[mvaldes]

Originally Posted by BobDiaz

If you had the guts to say this, try, "I don't know, but what happens when you are hit by a semi when you are on your Harley?"
Bob Diaz

We literally get hundreds of bikers through the little town (where we live on weekends) on the nice riding weekends. I've found that "Good question, what's your plan?" is usually good for a smile, generally preceded by a pensive pause.

[fannum]

It seems to be a curse of advancing economies. When I was a kid we lived around the world, and especially in northern Europe, India and SE Asia/China, the roads were clogged with bicycles, and a good system of bike racks. Now in those areas, cars rule and pollute.

Every time there is a gas scare or sudden price rise ... I've lived through them in '57, twice in the 70s, and about four years back ... each time people rush to economy cars, but then they rearrange their lives and without any price drop, go back to the behemoths.

Now we have industry pundits predicting $5 gas. Hold onto your smarts, and they'll be valuable again ... probably briefly though.