Daimler set to unleash Smart invasion of US - FT.com

[spdickey]

http://www.ft.com/cms/s/0/52e69280-a...nclick_check=1

Originally Posted by ft.com 12/17/2007

Americans will soon have their first taste of the Smart car, nine years after Daimler's eye-catching run-about made its debut on European streets.

The German carmaker believes its decision to wait so long before entering the world's biggest market will prove rewarding.

"America has never been more ready for a car like this," says Dave Schembri, president of Smart USA, the car's distributor.

Next month's US launch is a critical part of Daimler's rescue plan for Smart. For all its pizzazz, the little car has been a financial millstone. Daimler came close to shutting down Smart last year, but opted instead for a €1bn ($1.44bn) restructuring aimed at making the business profitable by the end of 2007.

Smart's green credentials are an obvious selling point across the Atlantic. Its fuel consumption is better than the 35 miles per gallon standard, now making its way through Congress, that other carmakers will have to achieve by 2020.

Smart is also relying on American consumers' one-upmanship to attract buyers.

Until now, Mr Schembri observes, only drivers of Ferrari or Corvette sports cars could expect a thumbs-up from fellow motorists at a red light.

But from next month, "the neighbours will come running over to look at your Smart car".

John Wolkonowicz, analyst at Global Insight, a consultancy, says that Smart will sell well in "a handful of trendy, left-leaning cities, like Boston and Seattle".

But unless petrol prices more than double, Mr Wolkonowicz predicts that most Americans - even many city-dwellers - will be nervous of driving a Smart car on roads filled with huge tractor-trailers, sports utility vehicles and pick-up trucks.

"People value their safety more than a few less dollars on their fuel bill", he says.

Smart USA has collected $99 deposits - and valuable marketing data - from more than 30,000 prospective buyers. Based on these enquiries, Smart cars will be made available at outlets in such unlikely places as Omaha, Nebraska, and Jackson, Mississippi.

About 7 per cent of those people who paid deposits have subsequently asked for their money back.

On the other hand, 9,000 have moved closer to a firm order by choosing a colour and other options for their vehicle.

The favourite colours so far are metallic blue, red and yellow, which might be a sign that the wish to stand out in a crowd will be a big Smart drawcard.

Mr Schembri declines to disclose sales targets. One pointer is Smart's experience in Canada, where the car has been available since late 2004 and where sales normally run at 8-11 per cent of the US.

Smart sold 3,023 cars north of the border in 2006, implying annual sales of about 30,000 in the US.

However, small cars tend to be more popular in Canada, and Smart demand has slipped significantly this year.

Still, Dieter Zetsche, Daimler's chief executive, has predicted that the Smart assembly plant in Hambach, France, would not be able to produce enough vehicles to meet US demand in 2008.

Copyright The Financial Times Limited 2007

[sisyphus]

We're all waiting for that invasion!

[SmartCard]

Yeah, bring it on!!

[a2jack]

Guys the peice you linked to was part writen by John Wolkonowicz of Global Insight.

Global Insight is one of the main the PR firms working for GM. They have been planting negitive quotes in many Smart articles across the country.

Global appears to have started this campaign about 2 months ago. This peice is the third one I have seen.

Please don't help them cast doubt on the Smart. They are good. They are paid to be $$$.

http://www.globalinsight.com/Automotive

A2Jack.

[SnakeFarm]

Originally Posted by a2jack

Guys the peice you linked to was part writen by John Wolkonowicz of Global Insight.

Global Insight is one of the main the PR firms working for GM. They have been planting negitive quotes in many Smart articles across the country.

Global appears to have started this campaign about 2 months ago. This peice is the third one I have seen.

Please don't help them cast doubt on the Smart. They are good. They are paid to be $$$.

http://www.globalinsight.com/Automotive

A2Jack.

That article has all the earmarks of a carefully orchestrated campaign of detraction. Just about every statement is a negative or a positve set-up for a subsequent negative. I give it an A+ for it's intended purpose. Most people will never catch on.

I just hope that it discourages a lot of people with res no.s less than 1363

[spdickey]

Originally Posted by a2jack

Guys the piece you linked to was part written by John Wolkonowicz of Global Insight.

While the GI spokeshole was quoted, where did you get the info that he wrote more than his quote?

On the face of it it looks like it was written by Bernard Simon in Detroit.

(Standard practice to quote at lease one negative opinion in most all articles)

[lhoboy]

Originally Posted by a2jack

Guys the peice you linked to was part writen by John Wolkonowicz of Global Insight.

Global Insight is one of the main the PR firms working for GM. They have been planting negitive quotes in many Smart articles across the country.

A2Jack,

Thanks for this bit of intell!

[lhoboy]

Originally Posted by spdickey

While the GI spokeshole was quoted, where did you get the info that he wrote more than his quote?

Most journalists are lazy. They will write an entire article based on what they learned speaking with one or two people, tossing in nothing more than a pearly quote as an acknowledgement. Journalists will also tend to return time and again to the same source for material on a given subject. At least this is my experience with reporters who have me on their source list. The good ones will go to several sources to get a well balanced story, but few do anymore.

[sharonlee]

OOOOOoooooooo....Getting very defensive now, aren't we??? But you gotta admit that small cars have never really caught on in this country. We have big country, big roads, big tastes, big needs. I too think the Smart is very cute but cute doesn't cut it for everybody. Even had to sell my beloved Corvette because I couldn't get behind the wheel when I was preggers...but it was a hoot while it lasted. THAT transmission was smooth as butter. The smart will turn heads for a while...Anybody remember the Nash Rambler?

[Carnut]

You probably mean the Nash Metropolitan. Factoid - The Nash was the first car to have a sedan where the seats converted into a bed . . .

. . . talk about preggers!