smart was in the right place at the right time with the right product, however since its introduction to the US market two years ago, fuel prices plunged; competition in comparable fuel mileage vehicles soared; and both happened during a time period when the automobile industry has been crushed from its previous heyday. Its the triple whammy and that will make it hard to get it back on its feet.
In Europe where our little buddies were born, size matters and smaller is better; the exact opposite of the US mentality. In the US, small vehicle size is a detrimental driving factor and for the perception of safety. "That little thing will squash like a grape in a crash!" is the general perception when reality is that all the vehicles that compare with smart have that problem. It's not unique to smart.
In order for smart to come back from the auto industry sales slump, they must distinguish themselves in ways others cannot. A 6,000 lb. SUV is an insane mode of transportation to move one or two 200 lb people to work 30 miles every day so that they can use the SUV to move bigger payloads only on occasion.
In Europe the biggest selling feature is small size and maneuverability. In the US, up until this point, smart's backbone has been only on novelty and fuel mileage. Take away novelty and now they compete in a stiff field where they are in the middle of the fuel economy pack with lots of four seat competitors who can haul bikes and more inside the passenger compartment with the same mileage.
So in my thinking, smart needs to focus and celebrate the city car advantage along with novelty and fuel and take a page out of the 60s VW beetle advertising campaigns to make the car cool to own. Play on environmentalism and the very small carbon footprint with these cars. Play on recyclable materials. Play on head-in parking. Position the car as cool and patriotic to own and they will see a resurgence of sales.
Use the same old car selling methods of the past and they are doomed to follow the past. Putting the former head of a failed car company in charge of growing your business is a tough concept for growth for me to understand. Saturn is out of business and failed to make it. So now Penske will have that same pilot steer his ship? Good luck with that Roger.